Advancing Africa’s Green Industrial Future: Insights from the IATF 2025 High-Level Forum on Sustainable Industrialization

Advancing Africa’s Green Industrial Future: Insights from the IATF 2025 High-Level Forum on Sustainable Industrialization

• Blog
• September 14, 2025

By Ambassador Salim Kim Walusimbi

From September 4–10, 2025, Algiers, Algeria, became the epicenter of Africa’s economic ambitions as it hosted the Fourth Intra-African Trade Fair (IATF 2025). Among the fair’s many pivotal sessions, a high-level thematic forum convened by the United Nations Industrial Development Organization (UNIDO), the African Export-Import Bank (Afreximbank), the African Continental Free Trade Area (AfCFTA) Secretariat, and Algeria’s Ministry of Industry stood out as a beacon of hope for Africa’s sustainable industrial transformation. Under the theme “Boosting Intra-African Trade for a Sustainable Future: Innovation, Value Addition, and Green Industrialisation,” this forum illuminated the critical role of green and competitive value chains in unlocking the AfCFTA’s potential and positioning African industries as formidable players in global markets.

As Africa strides toward economic integration under the AfCFTA—a single market encompassing over 1.4 billion people and a combined GDP exceeding $3.5 trillion—the need for sustainable industrialization has never been more urgent. The forum underscored that industrialization, when aligned with environmental stewardship, can drive inclusive growth, create jobs, and reduce dependency on raw commodity exports. With intra-African trade rebounding to $220.3 billion in 2024—a 12.4% increase from the previous year, according to Afreximbank’s African Trade Report 2025—the stage is set for transformative policies that prioritize sustainability alongside economic competitiveness.

Financing the Green Industrial Revolution

A central focus of the forum was the exploration of financing mechanisms to support sustainable industries. Panelists emphasized innovative trade finance solutions, blended investments combining public and private capital, and incentive frameworks to catalyze green industrial growth. Afreximbank’s leadership in this space was evident, with its Pan-African Payment and Settlement System (PAPSS) and a $10 billion Adjustment Fund designed to facilitate AfCFTA implementation. These tools aim to bridge financing gaps, enabling African businesses—particularly small and medium-sized enterprises (SMEs)—to scale operations and compete in regional and global markets.

Blended investments emerged as a game-changer, with discussions highlighting how partnerships between governments, development banks, and private investors can de-risk projects in renewable energy, sustainable agro-processing, and circular economy initiatives. For instance, incentive frameworks, such as tax breaks and subsidies for renewable energy components, were proposed to attract private capital while ensuring alignment with Africa’s climate resilience goals. The forum called for harmonized policies across AfCFTA member states to create a predictable investment environment, encouraging both domestic and diaspora investment into high-impact sectors like agro-processing, pharmaceuticals, and digital industries.

Opportunities in Green Value Chains

The discussions spotlighted key sectors with transformative potential: renewable energy components, circular economy solutions, and sustainable agro-processing. Renewable energy was a focal point, with panelists noting Africa’s vast potential in solar, wind, and hydroelectric power. By developing local manufacturing for renewable energy components—such as solar panels and wind turbine parts—African industries can reduce reliance on imports, create jobs, and position the continent as a hub for green technology. Algeria’s ongoing infrastructure projects, including the Trans-Saharan Road and the Algeria Gas Pipeline, were cited as examples of how regional connectivity can support the distribution of green energy solutions across borders.

The circular economy was another critical theme, with panelists advocating for production models that minimize waste and maximize resource efficiency. By adopting circular practices, African industries can transform waste into value-added products, fostering sustainability while enhancing competitiveness. Sustainable agro-processing, meanwhile, was highlighted as a cornerstone for economic diversification. By adding value to agricultural products—such as processing cocoa, coffee, or cashews locally—African countries can capture higher margins, create employment, and reduce the export of raw commodities. The forum showcased success stories, such as women-led agro-processing enterprises supported by the AU’s Women in Processing Pavilion, as models for inclusive growth.

South-South and Triangular Cooperation: A Catalyst for Transformation

A standout feature of the forum was its emphasis on South-South and Triangular Industrial Cooperation as a mechanism for mobilizing resources, transferring technology, and building capacity. By fostering collaboration among African nations and their partners in the Global South, this approach leverages shared experiences to address common challenges. For instance, technology transfers from countries with advanced renewable energy sectors can accelerate Africa’s green industrial transition. Triangular cooperation, involving partnerships with international organizations like UNIDO, further amplifies these efforts by providing technical expertise and funding.

The forum highlighted practical examples of South-South cooperation, such as Arise Integrated Industrial Platforms (Arise IIP), a premier partner of IATF 2025. Arise IIP designs and operates industrial ecosystems that transform raw materials locally, boosting exports and promoting sustainable trade. Such initiatives demonstrate how collaborative frameworks can bridge industrial gaps, enhance value addition, and drive economic integration under the AfCFTA.

A Roadmap for the Future

The forum culminated in a shared roadmap to align financing and industrial policies with the AfCFTA’s sustainable development goals. Key recommendations included harmonizing incentive frameworks to attract green investment, strengthening regional value chains, and expanding partnerships to connect African enterprises with global markets. The roadmap emphasized the need for data-driven policies, with Afreximbank’s African Trade Report 2025 providing critical insights into trade diversification trends, such as the growing share of machinery, motor vehicles, and food products in intra-African trade.

UNIDO’s role in consolidating these insights was pivotal, with the organization committing to integrating the forum’s outcomes into its future initiatives on South-South and Triangular cooperation. By fostering knowledge exchange and capacity building, UNIDO aims to support Africa’s green industrial transformation, ensuring that economic growth aligns with environmental and social objectives.

A Call to Action

As we reflect on the IATF 2025 forum, we are struck by the collective resolve to transform Africa’s industrial landscape. The event was not merely a platform for dialogue but a call to action—a reminder that sustainable industrialization is not an option but a necessity for Africa’s future. Algeria’s leadership in hosting this landmark event, coupled with the strategic vision of Afreximbank, the AfCFTA Secretariat, and UNIDO, has set a powerful precedent for continental collaboration.

The projected $44 billion in trade and investment deals from IATF 2025 underscores the fair’s role as a catalyst for economic transformation. Yet, the true measure of success lies in the implementation of the forum’s recommendations: scaling up green value chains, mobilizing innovative financing, and fostering inclusive partnerships. As African nations unite to harness the AfCFTA’s potential, the path to a sustainable, competitive, and integrated continent is clearer than ever. Let us seize this moment to build an Africa that thrives—not just for today, but for generations to come.

Ambassador Salim Kim Walusimbi is a thought leader on African economic integration, and AfCFTA Trade Advisor and Trade Facilitation Expert based in Uganda.