Prioritising climate adaptation: Financing Africa’s resilient future

It’s clear that while mitigation efforts remain vital, equal attention must be given to adaptation and resilience.

The World Meteorological Organization’s ‘State of the Climate in Africa 2024’ report highlights the disproportionate burden climate change places on our continent. Costs linked to climate impacts could reach up to 5% of African GDP, with some countries allocating nearly 9% of their budgets to manage climate extremes.

Building resilience means investing in climate-smart agriculture, flood defences, energy storage, early warning systems and resilient infrastructure. These efforts not only protect communities and economies from droughts, floods and heatwaves but also create opportunities for innovation and growth.

However, scaling up adaptation finance is challenging. Barriers include unclear revenue streams, limited data, insufficient expertise and the difficulty of measuring long-term impact.

Addressing climate-related impact and prioritising adaptation and resilience are both moral and business imperatives. As highlighted during the 2025 SADC Sustainable Finance Forum and G20 engagements in Cape Town, the economic cost of inaction is substantial. Nearly 80% of African businesses report climate impacts today, with flooding, drought and heat emerging as the top physical risks. Investing in resilience is not only about protecting livelihoods but also about safeguarding long-term economic stability and competitiveness.

Overcoming these challenges requires creative financing models, from leveraging carbon credit revenues and ecotourism to blended finance structures that unite public, private and philanthropic capital. Index-based (parametric) insurance is another tool that can help mitigate physical risks.

Data will also be an important factor of effective adaptation strategies. Better modelling, geolocation data and risk assessment tools will enable more targeted investments and measurable outcomes. As W Edwards Deming famously said, “In God we trust; all others must bring data.”

While adaptation is still a relatively new consideration in many boardrooms, incorporating it into corporate strategies can futureproof operations, reduce risk exposure and create new value chains. Visionary leadership will be key to shifting this from an emerging topic to a mainstream business priority.

Standard Bank has committed to mobilising capital for both mitigation and adaptation. In April 2025, we increased our sustainable finance target to R450 billion by 2028, with R177 billion already mobilised since 2022. Our green and social finance portfolio includes adaptation-focused projects such as basic infrastructure, essential services, biodiversity conservation and sustainable farming.

We have financed R12 billion in battery energy storage systems (BESS) across Africa, improving grid resilience and energy access. In agriculture, we have committed to financing R7 billion in climate-smart practices by 2030, with R2 billion already deployed in 2024. With nearly 40% of Africa’s land dedicated to agriculture, this sector is critical to both food security and environmental stewardship.

The scale of climate challenges demands collaboration across private, public and civil society sectors. South Africa’s G20 presidency in 2025 offers a unique platform to drive adaptation as a global norm, not an exception.

Meet the expert behind the insights

Sasha Cook

Head of Sustainable Finance, Standard Bank Corporate and Investment Banking