Climate Action and Economic Growth Are Mutually Reinforcing: President Ramaphosa

President Ramaphosa rejected the notion that countries must choose between economic growth and climate responsibility, stressing that the two are deeply interconnected.

President Cyril Ramaphosa has underscored that a nation’s climate action goals and economic ambitions can and must advance together, describing climate action as a powerful driver and enabler of sustainable economic growth. The President was speaking during a fireside chat at Abu Dhabi Sustainability Week 2026.

Climate Action as an Economic Catalyst

President Ramaphosa rejected the notion that countries must choose between economic growth and climate responsibility, stressing that the two are deeply interconnected.

He noted that countries which have pursued ambitious climate strategies have ultimately experienced economic growth, driven by clean energy adoption and technological innovation.

According to the President:

• Clean energy accelerates the emergence of new technologies and industries

• While some legacy sectors may decline, new sub-sectors open up, creating fresh economic opportunities

• Climate action should therefore be viewed as mutually inclusive and reinforcing, not as a trade-off

“It’s not a binary question. It’s a mutually inclusive and reinforcing approach,” he said.

Warning Against One-Sided Approaches

The President cautioned that focusing exclusively on either economic growth or climate action could undermine long-term prosperity.

• Economic growth without climate action, he warned, could lead to stagnation or reversal over time

• Climate action without economic balance may result in growth that is unsustainable or inequitable

“A dual approach, focusing on both, can actually drive the economy forward,” President Ramaphosa emphasised.

South Africa’s Just Energy Transition: A Country-Led Model

Reflecting on South Africa’s experience in mobilising finance for its Just Energy Transition, President Ramaphosa highlighted the importance of country ownership in climate planning.

He explained that South Africa:

• Designed its own climate plan and transition agenda

• Used this foundation to raise innovative blended finance, combining grants and concessional funding

• Benefited from a financing model that was cooperative rather than imposed

This approach, he said, allowed South Africa to move quickly and attract significant investment.

“We were first from the starting blocks… and we’re very pleased that a number of countries from the Global South have followed in the wake of what South Africa did,” he noted.

As a result, particularly in the Northern Cape, South Africa has attracted over R110 billion in investments, driven by collaboration between government and financiers.

Africa’s Energy Endowment and Investment Opportunity

Turning to the broader African continent, President Ramaphosa highlighted Africa’s vast renewable energy potential, pointing to:

• Abundant solar resources

• Significant wind power

• Extensive hydropower capacity

He emphasised that Africa’s mineral wealth, combined with renewable energy, presents a major opportunity to shift from raw material exports to value-added beneficiation.

Rather than exporting unprocessed minerals, the President argued, Africa should:

• Add value locally

• Use its mineral resources to support energy generation and industrialisation

Energy Access as an Opportunity, Not a Constraint

President Ramaphosa noted that around 600 million people in Africa still lack access to electricity, framing this not as a burden but as a transformative opportunity.

By leveraging renewable energy and infrastructure development, Africa can:

• Expand electricity access

• Drive industrial growth

• Create jobs and economic resilience

He also highlighted Africa’s potential to become a global leader in green hydrogen, using its solar and wind resources to produce and export clean energy.

Call to Global Investors and Financiers

Concluding his remarks, President Ramaphosa issued a strong invitation to global financiers and investors to partner with Africa.

He said:

• Africa has immense potential for energy generation and infrastructure expansion

• Energy-led development will unlock higher growth trajectories

• The continent represents one of the most promising frontiers for sustainable investment

“I invite you… to come to the African continent and invest there. That is where the future is,” President Ramaphosa concluded.