Africa's banking sector is integrating green finance from within, using existing institutions to bypass the cost and complexity of standalone green banks. The result is a strategic, locally grounded model tackling the continent's climate finance shortfall.
African banks increasingly integrate green finance instruments into their operations-an early but strategic step toward building green banks and addressing the continent's climate finance shortfall.
A recent report - "Sustainable Banking Assessment for Africa SUSBA" - published by the World Wide Fund for Nature on April 30th, evaluated this trend.
The authors found that "most banks in Africa are increasingly embracing regulatory and industry guidelines and hiring more ESG professionals to embed sustainable finance practices and drive a green development and transition."
The assessment reviewed 25 banks across eight countries: Cameroon, Gabon, Kenya, Namibia, South Africa, Tanzania, the Democratic Republic of Congo, and Zambia.