This article was prepared with support from the United Nations Economic Commission (ECA) in Africa
As climate change accelerates and climate-related disasters increase, countries around the world are competing to build resilient infrastructure. However, African countries already facing a debt crisis can only attract a small portion of the funding they need.
In a roundtable discussion of ECA's COM2025 bystanders, the speaker said several innovative financing tools could be used to access the investments needed by Africa.
Green and sustainability-related bonds are gaining traction as viable means of driving climate investment, says Joseph Intosifl, senior climate information at the Green Climate Fund and expert on early warning systems.
Ntsiful pointed to examples of success across the continent, including South Africa's first sovereign environmental bond, which was launched in 2023.
Similarly, Morocco's Green Bond Initiative has strengthened the world's largest solar complex of Noor oalzaate.
Beyond green bonds, public-private partnerships play a key role in mobilizing climate finance and risk allocation. “Public Services sector partnerships are important in mobilizing climate funds and enabling other parties, particularly the private sector, to participate in mobilizing this very important resource,” Ntsiful explained.
Looking back at the role of debt swaps, Jean Paul Adam is the director of policy, surveillance and advocacy at the UN Secretary-General's Office of Special Advisors in Africa, and while they provide some relief, they warned that they would not replace a complete debt restructuring if the country is in financial trouble.
However, debt exchanges promise to create financial space, especially in African countries that suffer from high debt service costs.
“The opportunities to improve fiscal space are important, especially as the costs of debt building have increased dramatically in recent years, especially in African countries, whether middle or low income. This is related to the issue of capital costs,” he said.
Adam emphasized that for debt swaps to be truly effective, they must benefit vulnerable communities rather than contribute to narrow profits.
