African policymakers, development finance leaders and global partners are calling for urgent reforms to help countries respond to climate change while managing rising debt burdens and protecting economic growth.
The calls came 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 on the sidelines of the Africa Forward Summit in Nairobi.
Participants said African countries are increasingly being forced to balance debt repayments with mounting climate-related pressures, including floods, droughts and other extreme weather events that are straining already limited public finances.
The discussions focused on how governments can preserve fiscal space while investing in climate resilience, sustainable development and long-term economic growth. Leaders explored reforms such as integrating climate risks into national budgeting and debt analysis, expanding climate-resilient debt clauses and using country financing platforms to attract sustainable investment.
Opening the session, Moussa Faki said African countries must lead the design of climate and debt solutions tailored to their own realities.
“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.
Faki said the initiative seeks to bring together borrowing countries, development banks and international partners at a time when African governments face a fragmented and increasingly difficult global debt environment.
Sidi Ould Tah said African countries continue to face disproportionately high borrowing costs despite having economic fundamentals comparable to countries in other regions.
“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,” he said.
Tah said Africa needs stronger regional financial mechanisms to reduce borrowing costs and help countries mobilize domestic resources for climate adaptation and development.
Several speakers linked the continent’s debt vulnerabilities directly to the growing impact of climate change.
Daouda Sembene said many African countries are trying to integrate climate transition goals into debt sustainability frameworks while facing shrinking fiscal space and increasing exposure to climate shocks.
“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,” he said.
Claudine Uwera said governments are increasingly being forced to make difficult trade-offs between economic stability and climate resilience investments.
“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, Uwera said climate resilience should be treated as a core economic investment rather than an optional environmental measure.
“In Rwanda, major investments are assessed not only for their economic returns, but also for their resilience and long-term sustainability impact,” she said.
Speakers also raised concerns about Africa’s high cost of capital, arguing that climate-vulnerable countries are paying significantly more to access international financing.
Adama Mariko said African countries often pay 50% to 60% more for similar financing compared with other regions.
“Strengthening domestic capital markets is critical, not just through taxation, but by mobilising savings and creating more dynamic local financial systems,” he said.
Mark Napier said debt distress is also limiting Africa’s ability to mobilize private investment needed for climate adaptation and economic development.
“We cannot address capital mobilisation without addressing the debt overhang — both challenges must be tackled in parallel,” he said.
Participants further called for stronger debt management systems, improved financial data and wider use of green and sustainability bonds to help countries finance climate resilience projects.
Shanti Bobin said climate resilience should be central to all future financing decisions involving African countries.
“Climate and development are two sides of the same coin,” she said. “Every investment, and indeed every new debt, should be assessed both for its growth impact and its contribution to resilience.”
The meeting concluded with calls for stronger coordination among African governments, development partners, international financial institutions and the private sector to advance reforms that align debt management with climate and development priorities.
