By Leila Ben Hassen, member of the Financial Afrik Awards jury.
“Africa’s oceans are not just geographical boundaries – they are economic lungs, climate shields, and engines of transformation.”
With over 30,000 kilometers of coastline and some of the richest marine ecosystems on the planet, Africa possesses exceptional natural capital. However, vision alone is not enough to unlock this potential. What the continent needs today is blue finance, this catalytic capital capable of transforming maritime opportunities into sustainable, investable, and resilient growth.
What is blue finance – and why now?
Blue finance encompasses financial instruments and investments aimed at supporting sustainable activities related to oceans and freshwater, such as: sustainable fishing and aquaculture, coastal and marine conservation, renewable marine energies (offshore wind, tidal, wave), resilient coastal infrastructure, blue carbon ecosystems (mangroves, seagrasses, wetlands), and products and technologies aimed at reducing marine pollution.
Far from being philanthropic, blue finance is based on profitable economic models that generate both competitive returns and measurable impacts. The International Finance Corporation (IFC) emphasizes the need to align these projects with SDGs 6 (Clean Water and Sanitation) and 14 (Life Below Water), while producing tangible results.
$5.1 billion, the projected value of the global ocean economy by 2050 (OECD).
The blue economy is no longer a niche market. For Africa – with its 38 coastal states and vast inland waters – it could become a pillar of economic transformation and climate resilience.
Financial levers of blue finance
Inspired by green finance, blue finance mobilizes various instruments to channel capital towards sustainable marine activities:
1. Blue bonds and sovereign blue bonds
The Seychelles paved the way in 2018 with the world’s first sovereign blue bond, raising $15 million to finance protected marine areas and sustainable fisheries management.
2. Blended finance
By combining concessional funds and private capital, this approach reduces risk and attracts institutional investors. The Blue Economy for Resilient Africa Program (BE4RAP), launched at COP27, mobilized $13.5 million for blue carbon pilot projects in Ghana’s mangroves.
3. Loans and grants for coastal resilience
The World Bank’s WACA project secured $246 million for coastal protection in Gambia, Ghana, and Guinea-Bissau. An additional funding of $91 million supports sustainable fishing in Mozambique, Tanzania, and Comoros.
4. SDG-linked bonds
The World Bank raised over $660 million through SDG 14 and 6-linked bonds, evidence of the growing investor interest in ocean finance.
5. Sustainability-linked loans and bonds (SLLs/SLBs)
These innovative instruments adjust financing conditions based on environmental performance indicators, such as wastewater reuse or certification of sustainable fishing practices.
“Blue finance is the bridge between financial innovation and environmental governance.”
Associating each instrument with the appropriate risk and return profile, from artisanal fisheries to offshore energies, is essential for balanced sector development.
Barriers to overcome
Despite encouraging momentum, blue finance remains in its infancy in Africa. The main obstacles:
- Insufficiently structured projects: few have feasibility studies or bankable models.
- Lack of regulatory frameworks: absence of coherent maritime planning and uncertain land rights.
- High risk perception: rising sea levels, monetary volatility, and climate shocks.
- Limited institutional capacities: most banks lack tools to assess marine ESG risks.
Overcoming these challenges requires strong political will, solid public-private partnerships, and a better financial culture of ocean assets.
Why Africa must act now
Economic and climate issues make action urgent:
- 12 million Africans already work in fishing and aquaculture, generating billions of dollars in GDP.
- In West Africa, nearly 42% of GDP comes from coastal areas where a third of the population lives. Protecting these territories is an economic imperative.
- International investors are now integrating blue carbon and coastal resilience into their climate portfolios.
- African institutions adopting credible blue finance frameworks will benefit from a first-mover advantage and attract premium ESG capital.
42% of West Africa’s GDP is generated in coastal areas, where environmental urgency meets economic interest.
Sectors with high potential
According to IFC guidelines (V2.0) and World Bank reports, five priority investment areas stand out:
- Blue infrastructure and logistics: resilient ports, cold chains, waste management.
- Marine energies: offshore wind, tidal, and wave energy.
- Blue carbon ecosystems: mangroves and seagrasses that store carbon and protect coasts.
- Sustainable fishing and aquaculture: traceability, certification, local processing.
- Eco-tourism: sustainable coastal and river tourism, allied with conservation.
These sectors represent not only a climate imperative but also new asset classes for visionary investors.
Advancing: finance as a lever for regeneration
For bankers, development institutions, and policymakers, the priorities are clear:
- Investing in project preparation: feasibility studies, guarantees, technical assistance.
- Developing innovative products: blue-green hybrid bonds, coastal insurance, blue carbon credits.
- Fostering public-private partnerships: governments reduce risk, banks drive innovation.
- Integrating ocean risk into portfolios: erosion, biodiversity loss, and water stress must be factored into financial assessments.
- Ensuring transparency: robust monitoring systems are essential to avoid “blue-washing.”
“Blue finance is not charity – it is a smart economic strategy for a climate-resilient Africa.”
Conclusion: Investing in Africa’s sustainable blue future
Blue finance is no longer an experiment; it is becoming a central pillar of the continent’s sustainable growth and financial resilience. For banks and investors, the blue economy offers profitable, inclusive, and regenerative opportunities.
Africa stands at a crossroads. Those who can structure, pool risks, and align incentives today will not only build strong returns but also the continent’s blue future, a future where profit and planet advance together.
