Africa Holds 60% Of The World’s Solar Potential But Receives Just 2% Of Clean Energy Investment ~Ngozi Okonjo-Iweala

At the World Economic Forum’s Annual Meeting in Davos, World Trade Organization (WTO) Director-General Dr. Ngozi Okonjo-Iweala delivered a compelling message: the perceived conflict between trade, climate action, and prosperity is a false dilemma. With this year’s theme, Reimagining Growth, world leaders, economists, and changemakers gathered to chart new paths for sustainable global development and Okonjo-Iweala’s call to rethink trade stood out.

“Just as we encourage countries to produce based on their economic comparative advantage,” she said, “we must start thinking about environmental comparative advantage.” She explained a transformative vision: What if countries produced what they are most environmentally efficient at, goods that generate lower carbon emissions and traded them with others, so that global emissions fall collectively?

“60% of the world’s solar energy potential lies in Africa,” Okonjo-Iweala highlighted, “and yet, it only attracts 2% of the world’s investment.”

For Africa and other emerging economies to drive sustainable growth, global trade must become a lever for environmental justice. “We should be encouraging the production of goods and services in regions where clean energy or critical minerals are abundant. That means shifting investments and attention to where it makes the most green sense.”

She also emphasized the crucial but underappreciated role of trade in enabling the green transition. “Without trade, we wouldn’t be able to move clean energy technologies, solar panels, wind turbines, and more from innovation hubs to where they are most needed. People take trade for granted, and in doing so, they overlook its power to accelerate climate solutions.

A key barrier remains: the risk perception that deters investment in emerging economies. “Whether it’s in Papua New Guinea or across the African continent, the investment needed to harness green potential is lacking,” she warned. “Governments must step in with guarantees and instruments to de-risk investments. Without addressing uncertainty, the private sector will stay away.”

Okonjo-Iweala’s message was clear: green growth is not just possible, it’s imperative. And for Africa, the world’s most resource-rich yet underutilized continent in the green energy space, the future lies not just in exporting raw materials but in becoming a global hub for sustainable production and trade.