Green Bonds in Africa’s Climate Fight

28 Jun 2025 GS 3 Environment

Nigeria raised $59 million in just two days through green bonds for climate and environmental projects, despite being a major oil-based economy.
Green bonds function like sovereign bonds, but the funds are used for eco-friendly projects; however, due to high investment risks, African nations pay higher interest rates (e.g., Nigeria pays 19%, France only 3%).
Nigeria was the first African state to issue sovereign green bonds, selling $30 million in 2017 and then another $41 million in 2019.”. Funds support renewable energy, eco-housing, and conservation.
Africa’s share in the global green bond market is just $5 billion out of $2.2 trillion (2023), though it saw a 125% rise in issuances in one year.
Other African green bond issuers:
- South Africa (Johannesburg, 2014): $140 million
- Kenya (Acorn Holdings, 2019): $40 million for student housing
- Tanzania (CRDB Bank, 2023): $300 million
- Ivory Coast (2023): $1.5 billion — largest issuance