Sustainable Bond Market in Africa: A Shift Towards Diversified Instruments
According to S&P Global, the volume of sustainable bonds (funds used to finance a mix of projects with both environmental and social benefits) has significantly slowed down in Africa in 2025, with very few sovereign issuances after the $13 billion raised in 2024. Governments have refocused their priorities on allocating funds from previous issuances, while gradually shifting towards sustainable development loans.
Notable Transactions
- Côte d'Ivoire secured a $500 million loan tied to sustainable goals
- Nigeria issued a green bond on its domestic market, raising 50 billion nairas (approximately $38 million) in June 2025
Market Trends
Although overall volumes are decreasing, the indicators do not necessarily translate to a loss of market momentum. Instead, there is a gradual repositioning towards more diversified instruments, in anticipation of a new wave of issuances driven by improving global credit conditions.
Green Bond Issuances on the Rise
Proof of this dynamic, green bond issuances (funds used exclusively to finance environmentally beneficial projects) increased in 2025 compared to 2024, primarily driven by Mauritian and South African issuers. The Industrial Development Corporation of South Africa issued a sustainable bond worth 3.4 billion rands, structured in two tranches. Meanwhile, Nedbank launched a social bond worth 2.5 billion rands in December 2025, with the support of the African Development Bank (AfDB).
African Development Bank and Regional Governments
The AfDB also returned to the market with a €500 million green bond in 2025. Regional governments are not lagging behind, with the state of Lagos issuing nearly 15 billion nairas in the same year. A sign that investor appetite remains intact, Nigeria plans to issue $352 million in green bonds in 2026.
Conclusion
Far from slowing down, sustainable financing in Africa is entering a phase of maturation. But where is Tunisia in all this? We are still waiting for its first green bond. Better late than never.
