Watching the Addis Ababa Declaration on Climate Change and Call for Action unfold at ACS2, I was struck by a palpable sense of déjà vu. The summit radiated ambition, with Africa positioned as a global climate leader, framed not as a passive recipient but as a proactive partner. Nevertheless decades of experience reveal a recurring tension between rhetoric and tangible outcomes. Bold pledges frequently lose traction in execution. The Africa Renewable Energy Initiative (AREI) of 2015 promised USD 10 billion for renewable energy, yet bureaucratic bottlenecks and fragmented oversight delayed most projects for years. Similarly, the Great Green Wall, aimed at restoring 100 million hectares of degraded land, achieved under 20 percent of its target by 2020. Even global climate finance pledges, such as the USD 100 billion promised annually to developing nations, have historically delivered less than 12 percent to Africa. These patterns are a stark reminder: ambition without disciplined execution risks producing spectacle rather than measurable impact.
The Addis Ababa Declaration, reinforced by the Africa Climate Innovation Compact (ACIC) and the African Climate Facility (ACF), represents a potential paradigm shift. These initiatives aim to channel resources directly to startups and innovators, enabling Africa to move toward an investment-driven climate strategy. Over 200 million Africans now access electricity through distributed solar ventures, and climate-tech startups captured 20 percent of venture funding in 2023. These examples demonstrate that when finance reaches green focused agile actors embedded in local ecosystems, measurable outcomes, energy access, resilience, and job creation will follow.
Africa’s green economy extends far beyond energy startups. Sustainable agriculture, climate-smart land restoration, green manufacturing, and digital innovation collectively generate economic and environmental value. Agritech ventures are applying precision irrigation, soil monitoring, and climate forecasting to increase yields while restoring degraded land. Green manufacturing initiatives are reducing carbon intensity and creating new jobs in regions transitioning away from fossil fuels. Digital platforms enable smallholder farmers and enterprises to access finance, markets, and climate data. This integration of technology, finance, and local innovation demonstrates that Africa can generate climate and economic outcomes simultaneously.
Still, the shift from aid dependency to a self-sustaining, investment-driven climate ecosystem is nuanced. Donor support remains indispensable. Africa faces a complex mix of vulnerabilities, including infrastructure gaps, high debt burdens, and uneven market development. While the continent is rightly seeking to position itself as a partner rather than an aid recipient, the reality is that donor contributions remain vital for early-stage risk mitigation, adaptation finance, and scaling innovative solutions. Development banks provided USD 137 billion in climate finance in 2024, yet most of this funding was in loans, unsuitable for countries with high debt vulnerabilities. Concessional finance, grants, and technical assistance are critical for adaptation projects and initiatives targeting the most vulnerable communities.
The success of Africa’s climate strategy depends on the strategic blending of donor support with private and startup-led finance. ACIC and ACF exemplify this approach, combining concessional capital, grants, and venture funding to drive measurable impact. Historical lessons reinforce this point. Many previous summit pledges fell victim to ceremonial enthusiasm, photo-op announcements and “cocktail promises” that never translated into implementation. Execution failures often stemmed from fragmented oversight, absence of performance-linked funding, and weak monitoring. To prevent a repeat, Africa must embed rigorous accountability into its climate finance strategy. Metrics such as hectares restored, emissions reduced, energy access expanded, and startups scaled should govern resource allocation. Adaptive governance mechanisms are essential, ensuring that projects remain responsive to evolving climate and market conditions.
Donors can provide seed capital, risk mitigation instruments, and capacity-building support, ensuring that green and climate focused projects scale effectively while remaining accountable. The intention to maintain donor-based financing for green startups and eco-friendly innovations is not rooted in reliance on aid forever and it is not even the principle behind the donors these days, but in strengthening sustainability. Strategically framed, it can be leveraged to create alternative financing mechanisms, aligning with the vision of prominent African leaders who emphasize Africa’s role as a proactive solution provider rather than merely a recipient of aid.
Startups and local innovators serve as execution engines, converting finance into tangible outputs: restored land, electrified communities, emissions reductions, and job creation. Africa’s green economy boom demonstrates the continent’s potential. Energy, agriculture, manufacturing, and digital innovation converge to create jobs, revenue, and resilience. Startups are the linchpin of this transformation, proving that innovation can drive measurable impact while simultaneously catalyzing economic growth. Yet, donor support remains non-negotiable, especially for adaptation and early-stage ventures that cannot immediately attract private investment. Strategic alignment of donors, private investors, and startups is crucial to ensure Africa transitions from a historically aid-dependent model to a robust, self-sustaining climate finance ecosystem.
Africa’s Investment trends indicate strong momentum. African startups raised USD 1.4 billion in the first half of 2025, a 78 percent increase from 2024, with a growing share directed toward climate-smart solutions. Leveraging these flows alongside continental priorities ensures efficiency, measurable outcomes, and economic transformation. Africa has a chance to demonstrate that vulnerability does not preclude leadership in climate solutions.
Ultimately, the Addis Ababa Declaration represents both promise and challenge. Africa possesses vision, innovators, and emerging capital to lead on climate solutions. However the continent must strategically harness donor support, embed startup-led innovation, and maintain disciplined execution. If executed successfully, Africa can transform vulnerability into leadership, turning ambition into measurable outcomes and investment into long-term economic and environmental impact.
Failure to operationalize these mechanisms risks another déjà vu moment, an inspiring summit that leaves pledges unmet. The difference between ceremony and transformation lies in rigorous finance strategies, performance-driven execution, and Africa asserting itself as a partner, not a recipient, in global climate action.
Contributed by Mikiyas Mulugeta
