Multiple financing instruments need to be scaled up to accelerate Africa’s energy future and to improve energy access

Recent crises have made it increasingly challenging for many African countries to raise financing to support their clean energy ambitions, despite the continent’s huge needs. Africa accounts for around 20% of the world’s population but attracts less than 2% of its spending on clean energy. Energy investment in Africa has been falling in recent years. Spending on fossil fuels – which has typically accounted for around two-thirds of investment – has declined and clean energy investment has remained flat. Africa is facing a variety of energy challenges. Managing the transition to a low-carbon economy and achieving sustainable development on the continent require a balanced mix of innovative solutions, including large-scale projects, distributed generation and interventions to strengthen the transmission grid. Electrifying Africa requires a systemic thinking that embraces all the components of the electricity system and its value chains. Renewable technologies offer significant benefits in terms of job creation, energy security, climate change mitigation and adaptation, food and water production, poverty reduction and business creation. This requires a step change in investment, requiring opening up a range of new capital sources and financing approaches. Making capital more affordable can unlock significant development across Africa, despite ample resources and favourable underlying economics, multiple barriers hinder the development of bankable clean energy opportunities in Africa and deter private investments in projects and companies at the necessary scale.
Scaling up and replicating existing innovative financing solutions requires a coordinated approach from African governments, development finance institutions, donors and private capital. 
The panel focuses on the multiple financing instruments in Africa need to be scaled up to accelerate Africa’s energy future and to improve energy access, with the necessary investments to ensure that everyone has access to reliable, affordable and sustainable electricity.