Ethiopia’s Green Finance Ecosystem And Sustainable Industrialization: Flows, Actors, And Stakeholder Insights
Green finance is moving from the margins to the mainstream of industrial policy, and for Ethiopia, it is fast becoming a practical lever to advance competitiveness, climate resilience, and inclusive growth at the same time. Against ambitious national goals set out in the Climate-Resilient Green Economy (CRGE) Strategy, the Ten-Year Development Plan (10YDP), and updated NDCs, Ethiopia faces a large financing gap and a still-nascent domestic market for climate-aligned capital. This report examines how green finance is currently structured and used in Ethiopia, what is working (and what isn’t), and which concrete steps can unlock bankable pipelines, crowd in private capital, and keep industrialization on a low-carbon, resilient path.
The study uses a mixed-methods approach: a broad desk review of documents and datasets; a multi-stakeholder workshop; semi structured interviews; and a structured survey of institutions spanning banks, investors, firms, regulators, and research bodies. It maps the main actors and instruments; assesses flows by purpose and sector; distils institutional and market outcomes; and analyzes international contributions, particularly China’s role under the Forum on China–Africa Cooperation (FOCAC).
Throughout, we use “green finance” as an umbrella term and retain “climate finance” where we cite Paris-aligned sources and splits (see Section 2.1.2: Note on Terminology: Green Finance vs. Climate Finance).