Mauderer outlines NGFS strategy for climate risk and Africa's green opportunities
Sabine Mauderer, First Deputy Governor of the Deutsche Bundesbank, discussed the role of central banks in navigating climate risks and highlighted Africa's economic opportunities in the green transition. She spoke at the South African Reserve Bank (SARB)-Network for Greening the Financial System (NGFS) Research Conference in Pretoria on March 11, 2026.
NGFS charts course for climate action
The Network for Greening the Financial System (NGFS) operates as a global network of over 170 central banks and supervisory authorities, dedicated to strengthening the financial system's capacity to manage climate and environmental risks.
Its work is founded on rigorous analysis, the development of practical tools, and a strong collaborative spirit.
Membership has continued to grow despite global headwinds, with 12 new African members joining since October 2023, bringing the total African members and observers to almost 30. The recent NGFS annual plenary meeting in Pretoria, attended by 180 representatives, focused on finalizing the network's future strategic direction.
Three key priorities for 2026 and 2027 include acting as a technical incubator for emerging topics like nature loss and integrating adaptation into supervisory toolkits; strengthening capacity building, particularly for emerging markets and developing economies, through training and peer learning; and building on expertise in climate scenario analyses, including new short-term scenarios out to 2030.
These scenarios underscore that climate change is a present risk, with Africa facing potential GDP losses of up to 12.5% below baseline under stress scenarios.
Africa's dual climate challenge and opportunity
Climate-related risks are increasingly visible, affecting economies and financial systems, with Southern Africa particularly vulnerable.
While climate action has slipped down the political agenda in many parts of the world, Africa is uniquely positioned to benefit from the clean energy transition.
The continent possesses abundant renewable energy potential and significant reserves of critical minerals essential for clean technologies, offering a powerful driver for sustainable growth.
The region is already experiencing a rapid surge in domestic renewable energy use, with sub-Saharan Africa expected to add more than 70 gigawatts of new renewable power between 2025 and 2030, effectively doubling its current installed capacity.
Despite this immense potential, sub-Saharan Africa received only 2.3% of global renewable energy investment in 2024, highlighting a critical investment gap that needs to be addressed to fully realize these opportunities.
Green transition: More than just risk management
Mauderer's speech effectively reframes the climate challenge, urging a focus beyond immediate risks to embrace the substantial economic opportunities for African nations in the green transition.
This perspective is crucial for central banks, shifting their role from mere risk managers to active facilitators of sustainable growth and innovation.
While the NGFS's strategic priorities for capacity building and scenario analysis are commendable, attracting the necessary investment to realize Africa's green potential remains the most critical and challenging hurdle.