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September 10, 2025

From Debt to Opportunity: Unlocking Domestic Capital for Climate and Nature under Fiscal Pressure

Overview

Africa faces a dual challenge: closing its $190 billion annual climate finance gap while navigating increasingly constrained fiscal space. Governments across the continent are responding to fiscal pressures by absorbing significant volumes of domestic liquidity through high-yield sovereign bonds, crowding out investment in climate and nature-positive sectors.

Domestic institutional investors—such as pension funds, insurers, and mutual funds—hold over $2.4 trillion in assets yet allocate less than 10% to sustainable sectors. High returns on government securities, lack of investable green pipelines, and weak enabling environments compound the challenge. Without bold shifts in policy, regulation, and financial innovation, this domestic capital will remain locked in low-impact assets.

This session will confront the uncomfortable truth: Africa’s over-reliance on domestic borrowing could be undermining its climate ambitions. But it will also chart a path forward, outlining how policymakers, regulators, development partners, and financial institutions can rebalance incentives, reduce risk, and unlock institutional capital for a greener, nature-positive future.

Read full concept note

Meet the Panelists
H.E Mr. Ahmed Shide

State Minister of Finance and Economic Development, Federal Democratic Republic of Ethiopia

Albert Mwenda

Director General, Budget, Fiscal and Economic Affairs, the National Treasury, Kenya

Patience Oninha

Director General, Debt Management Office, Nigeria

Kwabena Boamah

Managing Director, Stanbic Investment Management Services, Ghana

Solomon Quaynor

Vice President, Private Sector, Infrastructure & Industrialisation, African Development Bank (AfD)

Philip Buyskes

Chief Executive Officer – Frontclear BV

Cecilia Murai

Principal Specialist, Sustainable Finance – FSD Africa (Moderator)

Japhet S. Justine

Commissioner for Debt Management, Ministry of Finance of Tanzania

Patrick Ayota

Managing Director, National Social Security Fund, Uganda

Yaa Asantewaa Asante

Director, Public Debt Management Office, Ghana

Olumide Oyeitan

Chief Execuive, Stanbic IBTC Pension Managers Limited

Chris Chijiutomi

Managing Director and Head of Africa, British International Investments

Objectives

The session aims to:

  • Illuminate how high levels of public debt distort domestic investment flows, diverting them away from climate and nature priorities.
  • Diagnose the structural, policy, and regulatory barriers that prevent institutional investors from allocating capital to sustainable sectors.
  • Showcase Africa-led innovations—including sustainable finance products, de-risking mechanisms, and enabling policy frameworks—that are shifting investment incentives.
  • Catalyse new partnerships and commitments among governments, regulators, and institutional investors to develop and scale domestic climate finance solutions.