A groundbreaking keynote presentation delivered at the Green Finance Workshop – Addis Ababa 2025 has revealed critical insights into the current state of green finance in Ethiopia and its role in shaping a sustainable industrial future.
The keynote, titled “Ethiopia’s Green Finance & Sustainable Industrialization,” was presented by Dr. Gebre Tafere, Dean of the College of Social Sciences and Humanities at Debre Berhan University and Lead Local Consultant for Ethiopia under the Sino-African Green Finance Alliance (SAGFA).
Dr. Tafere’s research highlighted both the policy gaps and structural barriers that continue to limit Ethiopia’s ability to attract and scale climate-aligned investment for industrial development. While Ethiopia has made commendable strides—such as adopting the Climate Resilient Green Economy (CRGE) Strategy and the Long-Term Low Emission Development Strategy (2020–2050)—the green finance market remains underdeveloped and heavily reliant on grants and concessional financing.
“Green finance remains concentrated in public and donor-driven sources, with private sector participation still limited to just 8% of tracked climate finance,” Dr. Tafere noted. “High interest rates, strict collateral requirements, and the absence of dedicated green financial products are major bottlenecks.”
Importantly, the study also underscored the positive role of international platforms like FOCAC, whose investments in infrastructure, energy, and industrial parks have laid the groundwork for Ethiopia’s green industrial aspirations.
The keynote was one of the highlights of the Green Finance Workshop, organized by the Africa-China Centre for Policy and Advisory (ACCPA) with support from the African Climate Foundation (ACF). The event brought together over 45 leaders from Ethiopia’s financial, public, and private sectors to catalyze investment and collaboration for sustainable growth.