{
  "title": "Powering Growth",
  "sourceUrl": "https://www.imf.org/en/publications/fandd/issues/2021/09/fighting-climate-change-in-africa-ireri",
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  "summary": "Powering Growth Benson Ireri and Rebekah Shirley African countries are embracing renewables to accelerate energy access",
  "sections": [
    {
      "heading": "Energy access overview",
      "content": "- 770 million people have no electricity—75 percent of whom live in sub-Saharan Africa (IEA, 2019).\n- 900 million lack access to clean cooking in the region (IEA, 2019).\n- Lack of electricity and clean cooking limits educational and business opportunities and people’s economic prospects and well-being."
    },
    {
      "heading": "Financing gap and investment needs",
      "content": "- Closing the energy access gap in sub-Saharan African countries will require an estimated annual investment of $28 billion up to 2030 (IEA).\n  - $13 billion for mini-grids.\n  - $7.5 billion for grid.\n  - $6.5 billion for off-grid investments.\n- Clean cooking: $131 million committed versus $4.5 billion needed by 2030.\n- Countries such as Chad, Ethiopia, and Nigeria face major financing shortfalls.\n- The Democratic Republic of the Congo and Ethiopia, where 95 percent of the population lacks access to clean cooking, receive less than 1 percent of the annual investment."
    },
    {
      "heading": "Constraints and risks to scaling investment",
      "content": "- Political instability.\n- Macroeconomic uncertainty (because of inflation and exchange rates).\n- Policy and regulatory issues.\n- Institutional weaknesses.\n- Lack of transparency.\n- Market failures and insufficient aid to channel financing where it is needed most.\n- Several developed economies have failed to deliver on their pledge of $100 billion annually in climate finance and are cutting foreign aid, at a time when investment needs to be doubled."
    },
    {
      "heading": "Successful initiatives and catalytic financing examples",
      "content": "- Sustainable Use of Natural Resources and Energy Finance initiative (French Development Agency facility):\n  - Catalyzes commercial lending to the clean energy sector.\n  - Has helped finance more than 60 projects in commercial and industrial sectors and on-grid projects across Kenya, Tanzania, and Uganda.\n  - Provides structured financing, technical assistance, support for investment structuring, and uses guarantee mechanisms to share some credit risks.\n- Sustainable Energy Fund for Africa (multi-donor fund established in 2011, managed by the African Development Bank):\n  - Provides technical assistance, concessional and catalytic financing instruments to de-risk investments.\n  - Targets green baseload power, green mini-grids, and energy efficiency.\n  - Facilitated AfDB’s first two scale-up programs in Burkina Faso and the Democratic Republic of the Congo.\n  - Played a key role in developing energy blended finance initiatives, including the Africa Renewable Energy Fund.\n- Africa Renewable Energy Fund and Frontier Energy:\n  - Frontier Energy has invested over $1.8 billion in more than 45 renewable energy projects in sub-Saharan Africa, with a total capacity of more than 750 megawatts.\n- 2020 AfDB commitments via the Sustainable Energy Fund for Africa:\n  - $5 million committed to investment firms Enabling Qapital and Spark+ to raise equity for clean cooking companies.\n  - €10 million from the European Union through its blending facility complemented this funding and helped attract investors."
    },
    {
      "heading": "Policy implications and recommended actions",
      "content": "- Urgent mobilization of capital for clean energy investment in the region is needed.\n- COP26 and the Energy Transition Council should play a central role in driving this mobilization.\n- Replication and scaling of successful catalytic instruments and blended finance facilities can help unlock private capital.\n- Addressing political, macroeconomic, policy, regulatory, and transparency constraints is critical to improve the investment climate and channel financing where it is needed most.\n\nPowering Growth — BENSON IRERI, REBEKAH SHIRLEY, F&D Magazine, September 2021.\n\n---\n\n Content in this bundle\n\n- شحذ النمو\n  - شحذ النمو (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - شحذ النمو (PDF){rel=\"external\" type=\"application/pdf\"}\n- Potenciar el crecimiento ● Finanzas y Desarrollo ● Septiembre de 2021\n  - Potenciar el crecimiento ● Finanzas y Desarrollo ● Septiembre de 2021 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Potenciar el crecimiento ● Finanzas y Desarrollo ● Septiembre de 2021 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Fighting Climate Change in Africa - IMF F&D\n  - Fighting Climate Change in Africa - IMF F&D (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Fighting Climate Change in Africa - IMF F&D (PDF){rel=\"external\" type=\"application/pdf\"}\n- Nourrir la croissance\n  - Nourrir la croissance (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Nourrir la croissance (PDF){rel=\"external\" type=\"application/pdf\"}\n- Проблемы климата\n  - Проблемы климата (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Проблемы климата (PDF){rel=\"external\" type=\"application/pdf\"}\n- 推动经济增长 - 金融与发展 - 国际货币基金组织季刊 2021年9月号·第58卷·第3期\n  - 推动经济增长 - 金融与发展 - 国际货币基金组织季刊 2021年9月号·第58卷·第3期 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 推动经济增长 - 金融与发展 - 国际货币基金组织季刊 2021年9月号·第58卷·第3期 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fandd/issues/2021/09/fighting-climate-change-in-africa-ireri"
    }
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    "Authors: BENSON IRERI, REBEKAH SHIRLEY",
    "Published: September 2, 2021",
    "770 million people have no electricity—75 percent of whom live in sub-Saharan Africa (IEA, 2019).",
    "900 million lack access to clean cooking in the region (IEA, 2019).",
    "Lack of electricity and clean cooking limits educational and business opportunities and people’s economic prospects and well-being.",
    "Closing the energy access gap in sub-Saharan African countries will require an estimated annual investment of $28 billion up to 2030 (IEA).",
    "Clean cooking: $131 million committed versus $4.5 billion needed by 2030.",
    "Countries such as Chad, Ethiopia, and Nigeria face major financing shortfalls.",
    "The Democratic Republic of the Congo and Ethiopia, where 95 percent of the population lacks access to clean cooking, receive less than 1 percent of the annual investment.",
    "Political instability.",
    "Macroeconomic uncertainty (because of inflation and exchange rates).",
    "Policy and regulatory issues.",
    "Institutional weaknesses.",
    "Lack of transparency.",
    "Market failures and insufficient aid to channel financing where it is needed most.",
    "Several developed economies have failed to deliver on their pledge of $100 billion annually in climate finance and are cutting foreign aid, at a time when investment needs to be doubled.",
    "Sustainable Use of Natural Resources and Energy Finance initiative (French Development Agency facility):",
    "Sustainable Energy Fund for Africa (multi-donor fund established in 2011, managed by the African Development Bank):",
    "Africa Renewable Energy Fund and Frontier Energy:",
    "2020 AfDB commitments via the Sustainable Energy Fund for Africa:",
    "Urgent mobilization of capital for clean energy investment in the region is needed.",
    "COP26 and the Energy Transition Council should play a central role in driving this mobilization.",
    "Replication and scaling of successful catalytic instruments and blended finance facilities can help unlock private capital.",
    "Addressing political, macroeconomic, policy, regulatory, and transparency constraints is critical to improve the investment climate and channel financing where it is needed most.",
    "**شحذ النمو**",
    "**Potenciar el crecimiento ● Finanzas y Desarrollo ● Septiembre de 2021**",
    "**Fighting Climate Change in Africa - IMF F&D**",
    "**Nourrir la croissance**",
    "**Проблемы климата**",
    "**推动经济增长 - 金融与发展 - 国际货币基金组织季刊 2021年9月号·第58卷·第3期**"
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