- A new collaboration was established for Africa’s renewable energy financial innovation.
- The establishment will support innovative business models and finance tools to scale investment in the energy sector.
- AfDB estimates that 600 million people in Africa still lack access to power.
The Sustainable Energy for All Initiative, the UNCDF, and the Opec Fund for International Development (OFID) is establishing new cooperation to boost the availability of renewable energy in developing nations, notably in Africa. These organizations intend to establish a financial innovation hub to benefit developing nations in accessing renewable energy.
The centre, which will be unveiled during COP27 in Sharm el-Sheikh, Egypt, in November 2022, will find creative answers to partner nations’ development problems, such as the lack of green funding and private sector investment. It will also support innovative business models and finance tools to locate, unlock, de-risk, and scale-up private sector investment in energy access.
Additionally, the proponents of the future centre hope to encourage the implementation of fresh alliances and funding sources, such as energy access and transition trust fund, to hasten the implementation of existing alternatives.
“Designed as an end-to-end global political and financial platform, the Hub will harness the power of financial innovation to ensure maximum leverage. Every dollar of sovereign finance is expected to attract $4 of green and sustainable capital into projects in the medium term,” says UNCDF. The centre is being built when there is still limited access to electricity throughout Africa. The African Development Bank (AfDB) estimates that 600 million people in Africa still lack access to power.