African Ministers and Development Leaders Convene at Africa Forward Summit to Address Debt Sustainability and Climate Transition

Nairobi, Kenya, 13 May 2026 – African policymakers, development finance leaders, and global partners have called for more practical and coordinated reforms to better align debt sustainability, climate transition, and development financing.

The call was made during a high-level side event titled “Integrating Debt Sustainability and Climate Transition: African Country Perspectives,” convened by AfriCatalyst, in partnership with the Pact for Prosperity, People and the Planet (4P), on the margins of the Africa Forward Summit in Nairobi. The dialogue brought together African policymakers, development finance leaders, and international partners to examine how countries can protect fiscal space while investing in climate resilience, development priorities, and long-term growth.

The session focused on moving the conversation from high-level commitments to practical implementation. Discussions explored concrete reform approaches, including the integration of climate considerations into macro-fiscal analysis, the use of risk sharing instruments such as climate resilient debt clauses, and country platform approaches to unlock sustainable investment.

Opening the session, H.E. Moussa Faki, 4P Special Envoy, emphasized the importance of country-led solutions and collective learning. “The 4P is designed to put countries in the driver’s seat, valuing their solutions and accelerating collective learning across the debt, climate, and development agenda,” he said.

He added that the 4P aims to help countries navigate an increasingly fragmented debt ecosystem by bringing relevant stakeholders around the same table, including borrowing countries, development banks, and partner institutions.

In a special intervention, Sidi Ould Tah, President of the African Development Bank, said African countries continue to face borrowing costs that are significantly higher than peers with similar fundamentals in other regions. He emphasized the need for a stronger African financial architecture that brings more transparency, standardisation, and confidence to investors.

“African countries continue to face borrowing costs that are significantly higher than peers with similar fundamentals in other regions, often by at least 200 basis points. This points to structural challenges that go beyond risk perception alone,” he said. On the way forward, he noted that “Africa needs its own financial stability mechanism, aligned with global best practices, to strengthen resilience, reduce borrowing costs, and unlock the continent’s own savings for development.”

Speaking during the session, Daouda Sembene, President and CEO of AfriCatalyst, noted that many African countries are actively working to integrate climate transition into their debt sustainability frameworks, but are doing so in a context of limited fiscal space and increasing exposure to climate and external shocks. He stressed that the priority now is to move from commitment to implementation and understand what support countries need to make this transition practical.

“This conversation is not just about policy frameworks, but about how countries, partners, and the private sector can work together to support more integrated and sustainable approaches to financing,” Dr. Sembene said.

Country perspectives highlighted the difficult choices governments face in balancing fiscal stability, climate resilience, and development needs. Claudine Uwera, Senior Strategic Advisor to the Prime Minister of Rwanda, underscored how this challenge is being addressed in practice: “For many African countries, this debate comes down to one central question: how do we continue to grow, protect macroeconomic stability, and invest in resilience at the same time?” she said.

Drawing on Rwanda’s experience, she noted that the country has taken a deliberate approach to integrating climate into its development model. “In Rwanda, major investments are assessed not only for their economic returns, but also for their resilience and long-term sustainability impact,” she said, emphasizing that “climate resilience must be treated as a productive investment, not an add-on.”

The discussion also underscored the need to address Africa’s high cost of capital and strengthen domestic financial systems. Adama Mariko, Secretary General of Finance in Common, noted that African countries are paying significantly more for the same financing in international markets and called for stronger domestic capital markets and more dynamic local financial systems.

“For a global problem, African countries are paying significantly more, often 50 to 60 percent higher,for the same financing in international markets,” he said, calling for stronger domestic capital markets and more dynamic local financial systems to reduce costs and improve access to finance. “

“Strengthening domestic capital markets is critical, not just through taxation, but by mobilising savings and creating more dynamic local financial systems.” he further noted

Mark Napier, CEO of FSD Africa, emphasized that debt sustainability directly affects Africa’s ability to mobilise both public and private capital. “We cannot address capital mobilisation without addressing the debt overhang,both challenges must be tackled in parallel,” he said.

Speakers further called for stronger debt management capacity, better data, and more effective use of innovative financing instruments. Shanti Bobin, Deputy Director for Multilateral Affairs and Development at the Treasury of France, emphasized the need to place climate and resilience at the centre of financing decisions: “Climate and development are two sides of the same coin, this must remain at the centre of how we approach financing, particularly for Africa,” she said.

She further noted ,“Every investment, and indeed every new debt, should be assessed both for its growth impact and its contribution to resilience.”

Sebastián Nieto Parra, Head of Regional Development Dynamics at the OECD Development Centre, highlighted the importance of stronger debt management strategies, better data, and innovative instruments such as green and sustainability bonds.

“Reducing the cost of capital in Africa requires stronger debt management strategies,looking not just at the level of debt, but its composition, currency, and the mix between domestic and international financing,” he said. “Improving the availability and quality of data is critical, better, more comparable information can help shift investor perception and unlock capital,” he urged

Mattia Romani, Partner at Systemiq, pointed to a critical gap in how climate risk and resilience investments are assessed. “There is a fundamental asymmetry at the heart of this issue. While we are increasingly good at pricing climate risk, we are not yet able to capture the value of investments in resilience,” he said.

The event concluded with a call for stronger coordination between African countries, development partners, international institutions, and the private sector to advance practical reforms that strengthen Africa’s voice in global financial discussions, unlock sustainable investment, and better align debt, climate, and development priorities.

About AfriCatalyst:

AfriCatalyst is an independent, global development advisory firm headquartered in Dakar, Senegal. The firm partners with governments, financial institutions, and international organizations to design and implement evidence-based strategies for sustainable development and economic growth across Africa.

About the Pact for Prosperity, People and the Planet (4P):

The Pact for Prosperity, People and the Planet (4P) is a global platform established to accelerate reform of the international financial architecture and advance a more inclusive system of global governance. Bringing together over 70 countries across regions and income levels, the 4P supports action-oriented collaboration around three core workstreams: addressing the debt, nature and climate nexus; mobilising private capital for emerging markets and developing economies, including by examining prudential barriers to investment; and advancing additional sources of finance, including global solidarity levies, philanthropy and blended finance. Through its coalitions and high-level engagements, the 4P works to build political momentum behind practical reforms that can help close the Sustainable Development Goals financing gap.

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Fifi Esther, contact@africatalyst.com, AfriCatalyst