African Green Industrial Cities: A Place-Based Institutional Investor-Public Partnership to Propel Africa’s Green Industrialization
The Sustainable Markets Initiative (SMI) Africa Council (SMIAC) launched its African Green Industrial Cities Briefing today on COP29 Finance Day. The briefing, aligned with the COP29 Presidency’s Green Energy Declaration Pledge on Green Energy Zones and Corridors, presents Africa’s Green Industrial Cities (GICs) as a compelling new asset class with catalytic investment potential.
Rooted in the Nairobi Declaration, (Africa’s Green Investment Deal) and aligned with global market signals like the EU Green Deal’s Net Zero Industry Act and the U.S. Inflation Reduction Act, the briefing highlights Africa’s essential role in the $10 trillion-per-year and growing global green industrial economy.
Key Highlights:
- Green Industrial Cities as a Unique Asset Class: Developed through the SMI Africa Council’s Investable Asset Classes Working Group (SMIAC-IACWG) with support from DLA Piper and WSP, GICs represent place-based investment platforms designed to drive Africa’s green industrialization through renewable energy, low-carbon industries, and sustainable infrastructure.
- Alignment with Global Climate Goals: GICs are positioned to mobilize private capital to support Africa’s Nationally Determined Contributions (NDCs) and Sustainable Development Goals (SDGs), advancing climate resilience, energy security, and sustainable development across the continent.
- Catalyzing the Global Green Transition: GICs aim to establish Africa as a global green industrial leader by integrating African markets into worldwide clean energy and technology value chains. This approach creates a $3 trillion NDC-aligned investment platform, fostering green job creation and sustainable economic growth.
- Institutional Investor-Public Partnerships (IIPPs): The IIPPs framework is central to the GIC model, uniting governments, institutional investors, the private sector, philanthropies, city mayors, and development partners to build financially viable, resilient investment programs that are risk-adjusted for long-term sustainability and industrial competitiveness.
- Global Partnerships and Risk Mitigation: Aligned with global climate initiatives from the Commonwealth, G20, G7, Inflation Reduction Act, Etihad7, BRICS, and the EU Green Deal, the GIC model addresses typical barriers such as political and forex risks. Co-investments with African asset owners and long-term, bankable offtake agreements with global and local corporations enhance scalability and reduce risk for institutional investors.
Call to Action:
Dr. Hubert Danso, Co-Chair of the SMI Africa Council and CEO of the Africa Investor (Ai) Group, urged Heads of Government, institutional investors, city mayors, the private sector, philanthropies, and development partners to collectively champion the development of African Green Industrial Cities.
He stated, “Through Institutional Investor-Public Partnerships, stakeholders can significantly advance Africa’s green economy, creating impactful economic, environmental, and social benefits not only for Africa but the world.”
Aligned with the COP29 Green Zones and Corridors Declaration Pledge and the African Union’s Nairobi Declaration (Africa’s Green Investment Deal), African Green Industrial Cities are poised to drive sustainable development, support a just energy transition, and deliver portfolio resilience for domestic and global institutional investors.
Read the briefing here
Ends
About The Sustainable Markets Initiative (SMI) – www.sustainable-markets.org
Established by His Majesty King Charles III and launched at Davos, The Sustainable Markets Initiative (SMI) is the ‘go-to’ CEO-led private sector organisation on the transition to a sustainable future.
About The SMI Africa Council (SMIAC)
The SMI Africa Council (SMIAC) was led by His Majesty King Charles III in recognition of the current realities of the African continent’s 1.3 billion people, and the shared ambition of its 55 countries to establish a common position through the Nairobi Declaration (Africa’s Green Investment Deal) in combatting climate change, biodiversity loss and fulfilling its Nationally Determined Contributions (NDCs) and the Sustainable Development Goals (“SDGs”).
Launched in November 2023 in Nairobi, Kenya, the SMIAC champions scalable collective action by business, finance/investment and governments leaders to benefit people, planet and nature.
