- Despite possessing 60 per cent of the world’s best solar resources, Africa received only two per cent of global renewable energy financing last year.
- The inaugural Accelerated Partnership for Renewables in Africa (APRA) Investment Forum, recently held in Nairobi, aimed to tackle these financing challenges head-on.
Despite possessing 60 per cent of the world’s best solar resources, Africa received only two per cent of global renewable energy financing last year. This is according to the Financing Clean Energy in Africa report by the International Energy Agency.
This reality highlights the urgent need for innovative financial solutions to support the continent’s renewable energy transition, especially in light of the recent COP28 agreement to triple renewable energy capacity by 2030. Achieving this target is crucial for closing the energy access gap and ensuring that millions of Africans benefit from reliable, sustainable energy sources.
The inaugural Accelerated Partnership for Renewables in Africa (APRA) Investment Forum, recently held in Nairobi, aimed to tackle these financing challenges head-on. The forum brought together ministers, investors, developers, and financial institutions to devise strategies for overcoming obstacles and promoting sustainable energy solutions across Africa.
A key focus of the forum was the pressing requirement for innovative financing structures. Despite Africa’s immense renewable potential, the current financial landscape remains inadequate. Participants noted that the costs associated with project development can range from two per cent to 10 per cent of total project expenses, emphasising the necessity for both financial and technical assistance during the initial stages.
The International Renewable Energy Agency (IRENA) Director-General Francesco La Camera pointed out: “The success of global climate objectives is intrinsically linked to Africa realising its vast renewable energy potential,” underlining the critical need for support that aligns with local priorities.
The forum showcased 25 renewable energy projects and facilitated over 35 matchmaking sessions between project developers and financiers, interactions aimed to foster dialogue around successful initiatives while addressing the challenges encountered during project implementation. The exhibition allowed stakeholders to discuss the socioeconomic benefits of renewable energy projects in APRA countries, including Ethiopia, Ghana, Kenya, Namibia, Rwanda, Sierra Leone and Zimbabwe.
Numerous success stories emerged throughout the discussions, illustrating how targeted investments could yield significant financial, social, and environmental returns. Panels emphasised the balance between bankability and impact ability, advocating for investments that prioritise economic, social, and environmental returns.
Affordable, sustainable, scalable solutions were highlighted as essential for aligning with national development plans. Kenya’s Petroleum and Energy Cabinet Secretary Opiyo Wandayi remarked: “This forum is significant in mobilising critical investments to support Africa’s sustainable development at home while accelerating progress on global climate and energy transition goals.”
In addition, the forum featured in-depth sessions on various topics related to energy access. A session on Regional Energy Transition Outlooks for Africa presented pathways for achieving sustainable development by 2050 through localised value chains. IRENA representatives underscored the importance of enhanced regional cooperation and international collaboration to facilitate just energy transitions that are inclusive and equitable.