NAIROBI, Kenya, Mar 19 – Management consulting firm European House – Ambrosetti has called for increased private sector financing to tackle climate change in Africa, stressing its crucial role in complementing public investments.
Speaking at a climate finance forum, Pietro Milini, CEO of African Operations, emphasized the need for stronger private sector engagement in addressing climate risks.
“While public sector investments are essential, the private sector must also play its part,” Milini said.
He noted that private enterprises drive Africa’s economy, employing 90 percent of the workforce and contributing two-thirds of total investments, according to the African Union.
Milini highlighted that private climate finance in Africa has doubled in recent years but still lags behind funding from public and multilateral agencies.
He urged businesses to scale up investments to effectively mitigate climate risks.
He also underscored the role of small and medium-sized enterprises (SMEs), which account for 50 percent of Africa’s GDP and are well-positioned to drive climate solutions across industries.
The firm pointed to African capital markets’ rapid expansion, with a 500 percent increase in combined market capitalization over the last 20 years, signaling strong investor confidence.
Milini said this momentum could be leveraged to finance climate resilience initiatives.
According to Milini, Africa requires $30 billion to $50 billion annually to meet its climate goals, representing up to 10 percent of national budgets already allocated to climate adaptation and mitigation.
Despite contributing minimal global greenhouse gas emissions, Africa faces disproportionate climate impacts, making increased private sector participation critical in sustaining resilience efforts.
