Source: Agence Ecofin, August 2025

The African financial sector has taken a major step towards aligning itself with global climate and sustainability goals by validating a continent-wide taxonomy of sustainable finance. This innovative framework, the first of its kind for Africa, was endorsed by regulators, commercial banks, insurance companies and development finance institutions at a workshop in Nairobi on July 16-17, 2025.

Led by the African Development Bank through its African Financial Alliance on Climate Change (AFAC) platform, the workshop was the culmination of a year-long consultative process involving over 60 institutions from the financial and real sectors. The taxonomy provides a standardized definition of activities that contribute to sustainable development, enabling financial players to better direct capital towards climate-smart and socially responsible investments.

The African financial sector validates the continental taxonomy of sustainable finance