A policy analysis by a consulting firm, Harrison Rehoboth Consulting, has revealed that Africa will require an estimated $2.8 trillion between 2020 and 2030 to effectively tackle climate change and meet its commitments under the Paris Agreement.

The report stated that the continent needs about $277 billion annually to fund climate adaptation and mitigation projects aimed at reducing the devastating impact of floods, droughts, desertification and other environmental challenges threatening livelihoods across Africa.

The spokesperson of the consulting firm, Femi Sekoni, explained that the huge funding requirement is necessary to help African countries strengthen infrastructure, protect vulnerable communities, improve food security, expand renewable energy and transition to cleaner and more sustainable economies.

According to Sekoni, despite the growing climate crisis, Africa still depends heavily on foreign sources for climate financing, with domestic investors contributing only a small portion of the available funds.

According to estimates cited in the analysis, local institutions including banks, pension funds, insurance firms and private investors contribute only about 10 percent of climate finance flowing into the continent, while international organisations and development partners account for the larger share.

The report further revealed that climate financing across Africa remains unevenly distributed, with countries such as South Africa, Egypt, Nigeria, Morocco and Kenya attracting a significant percentage of available funding due to stronger financial systems and investment structures.

It added that many African countries facing severe climate threats are unable to attract large-scale funding because of weak institutions, limited project preparation capacity, policy uncertainties and concerns over investment risks.

The analysis further raised concerns over the structure of climate financing available to African countries, warning that a large portion of the funds comes in the form of loans rather than grants or concessional financing.