The concept of an “inclusive green economy” continues to gain traction in developing countries. It is seen as presenting opportunities, but also challenges. For Africa, transitioning to an inclusive green economy offers an alternative approach for tackling the continent’s unique development challenges, which include structural fragility, persistently high poverty and unemployment, environmental degradation, vulnerability to climate change and rapid population growth. It also provides a credible opportunity for achieving sustainable development and eradicating poverty in Africa, provided that emphasis is placed on the key sectors that will have the greatest impact on the environment and social issues.

The potential for the green economy to support the structural transformation of Africa and economic growth lies in the continent’s large natural resource endowments, which serve as the foundation of economic growth for most African countries. However, owing to the non-inclusive nature of economic growth, specific sectoral problems, such as poor infrastructure and low human capital, will continue to be key challenges in the transformation of the continent.