Unlocking Africa's green economy: a pivotal moment that may not return in "the next 150 yrs"

Johannesburg - The African Green Economy Summit (AGES) has once again proven to be a powerful catalyst for forging partnerships, unlocking capital and accelerating solutions that drive sustainable growth across the continent. With global attention on Africa's climate and economic reforms, this year's summit served as a critical meeting point for investors, policymakers and business leaders to align their vision and resources for impactful change.

Sanlam Investments, a leader in sustainable investing and title sponsor for the summit, highlighted the immense opportunities in Africa's green economy, reinforcing that now is the time to act boldly and think big. From innovative financing mechanisms to gender-focused capital allocation and nature-based solutions, AGES provided a platform to explore tangible pathways to scale impact.

Key insights from AGES:

Seizing the moment: a once-in-a-lifetime opportunity for Africa

Carl Roothman, CEO of Sanlam Investments, stressed that Africa stands at a pivotal crossroad: "There's a massive opportunity right now, with access to global capital and enthusiasm to invest in Africa [at its peak]. We probably won't be in this position again for another 150 years."

With Sanlam Investments managing close to R1 trillion in assets, Roothman underscored the importance of balancing social and economic returns to ensure Africa remains an attractive investment destination.

His key message was clear: "We're at an intersection of opportunity and responsibility. Africa must rise to the occasion, compete on a global scale and direct funding towards high-impact initiatives. With millions of dollars flowing into Africa, and a proliferation of investment opportunities, we must be smart with where funds flow.  If we don't act now, we'll have our children and grandchildren to answer to."

Gender-sensitive financing: the key to inclusive growth

The nexus of green reforms and women-led businesses was a focal point of discussion, with Teboho Makhabane, Head of ESG and Impact at Sanlam Investments, advocating for a more inclusive financial ecosystem. "We need more gender-sensitive financing methods," she urged. She said that traditional investors often overlook small businesses because they don't fit standard risk profiles. It's time to innovate and tap into alternative capital sources like carbon credits and blended finance.

Teboho emphasised the need to fix systemic biases in capital allocation and called for intentionality in driving gender equity. For her, diversification is critical. Intentionality catalyses action.

Debt-for-Nature Swaps: A Blueprint for Protecting Africa's Natural Capital

In ten years, the African penguin could be extinct. A debt-for-nature swap could be one viable way to save them.

Todd Micklethwaite, Executive Head of Strategic Initiatives & Partnerships at Sanlam Alternative Investments, joined Isobel Evans and Trevor Baptiste of Oceans Finance Company to explore the potential of debt-for-nature swaps, and similar innovative instruments in addressing some of the continent's most pressing climate-related needs. Citing the urgent need to protect Africa's vast natural ecosystems, Micklethwaite referenced learnings from Ecuador's landmark deal in the Galapagos – the largest debt-for-climate transaction globally to date – facilitated by Oceans Finance Company and financed by Climate Fund Managers (co-owned by Sanlam InfraWorks and FMO, the Dutch Development Bank).

"The deal stands as a leading example of what is possible when financial solutions are built around the impact we want to unlock. From our oceans and landscapes to the biodiversity and people who rely on them, we need to seek smart alternative financing to save what matters most," Micklethwaite said. He emphasised the urgency and opportunity that faces the investment community right now, the need to make a real impact on the ground and the imperative to reframe the narrative around natural capital as an asset, not a liability.

Imagine quantifying the value of an ocean for a country's balance sheet. Would that make a difference to how we fight to save our ecosystems? Abel Sakhau, Chief Sustainability Officer, Sanlam Group stressed the untapped potential of Africa's 38 coastal countries. "There's so much potential to unlock in this space... We need to advance the green and blue revolution."

Sanlam Investments is at the forefront of this agenda through its pioneering business Climate Fund Managers and commitment to bringing to market innovative investment opportunities that align with the Sanlam Group's strategic sustainability focus on oceans and the blue economy across Africa.

A Springboard for Collaboration and Action

As AGES concluded, one message rang clear: Africa has the resources, talent, and global backing to lead the green and blue economy transition. However, real change requires intentionality, bold thinking, and strategic capital deployment.

Sakhau added that with AGES serving as a powerful springboard for ideas and action, the focus now shifts to turning conversations into solidified impact.