Panel Session 2 at SITEI 2024 explored a critical issue facing Africa’s sustainable development—funding the green transition within the extractive industries. Led by Abbas Agbaje, CEO of ImpactCrest Consulting, this session assembled influential representatives from various sectors to examine the strategies, challenges, and opportunities in financing green growth for Africa’s extractive industries. The discussion was filled with valuable insights, actionable strategies, and visions for a sustainable, inclusive economy propelled by collaborative financing solutions.
Key Discussion Themes and Insights
Unlocking Green Financing for Extractive Industries: Opening the dialogue, the moderator, Abbas Agbaje, underscored the necessity for sustainable financing models that reflect Africa’s distinctive challenges and opportunities. He stressed that steering the extractive sector toward green growth will necessitate innovative and blended finance methods that mitigate investment risks and involve both public and private funding sources. This introduction highlighted the crucial role of financing in achieving sustainability, pointing to the green financing gap that must be bridged to ensure responsible development of Africa’s resources.
The Role of Private Sector Leadership: Lookman Martins, Group Head of Access Bank’s Commercial Banking Division, emphasised how private sector financial institutions can lead sustainable development by creating green finance products and forming partnerships. Mr. Martins noted the groundbreaking initiatives Access Bank has undertaken to finance sustainable projects through green bonds and customised financial offerings for green entrepreneurs. He posited that the private sector is in a unique position to drive sustainable financing initiatives, thereby establishing benchmarks for responsible investment in Africa’s extractive industry. Mr. Martins also indicated that public-private partnerships could greatly enhance the impact of green efforts.
Empowering Local Communities and Entrepreneurs: Representing Lagos State Environmental Protection Agency (LASEPA), Ms. Dayo Adebayo spoke on behalf of Dr. Babatunde Ajayi, underlining the importance of regulatory frameworks and public-private collaborations. She pointed out that government policies should align with industry strategies to promote sustainable practices, particularly in waste management and pollution oversight. Ms. Adebayo also emphasised the significance of public awareness in improving regulatory compliance, suggesting that government agencies can function as catalysts by fostering an ecosystem conducive to sustainable innovation in extractive industries.
Capacity Building as a Catalyst for Green Financing: Bankole Oloruntoba, CEO of Nigeria Climate Innovation Center (NCIC), shared important perspectives on how green financing remains elusive for many local entrepreneurs due to their limited capacity to secure investments. Bankole mentioned that his organisation is dedicated to addressing this challenge by enhancing the skills of green entrepreneurs through initiatives that render their projects attractive and scalable. He contended that Africa’s green transition hinges on equipping local entrepreneurs with the necessary resources and support to create sustainable business models, thereby paving the way for scalable green innovations that draw substantial local and international investment.
Collaboration and Climate Resilience Foluke Michael, CEO of Katarina de Medici Africa, called for collaborative efforts across sectors to enhance climate resilience. She stressed that Africa’s green transition requires collective action from governments, financial institutions, and local communities, with a particular emphasis on empowering women and youth to engage in green economies. Foluke’s insights highlighted the necessity of inclusive, cross-sector partnerships to ensure that green financing initiatives benefit all segments of society and produce enduring results.
Closing Thoughts: A Pathway to Sustainable Impact The session wrapped up on an optimistic note, with panellists recognizing Africa’s considerable potential to excel in green financing and sustainable practices within the extractive sector. The consensus was clear: a multifaceted strategy involving public-private partnerships, capacity building, and specialised financial products is crucial to facilitating Africa’s green transition. By harnessing Africa’s abundant resources and involving stakeholders from various sectors, the continent has the potential to foster an inclusive and sustainable economy that harmonises development with environmental stewardship.
The takeaways from Panel Session 2 highlight the vital importance of financing in achieving sustainability. By focusing on green growth and uplifting local communities, Africa’s extractive industries can pave the way for a resilient and inclusive green economy.