Old colonial power in new green financing instruments. Approaching financial subordination from the perspective of racial capitalism in renewable energy finance in Senegal

Abstract

Scaling up finance to expand renewable energy generation in Africa has become common sense in climate discourses. This article problematizes renewable energy finance in Africa and particularly Senegal from a perspective of global historical power relations. The article builds upon and contributes to literature on financial subordination and geographies of renewables finance. Starting point of the study is that literature on renewables finance with a critical perspective on race and colonial continuities is rare. It therefore draws on the concept of racial capitalism to unpack how finance differentiates along racialized lines and echoes colonial power. Empirical evidence is provided based on an analysis of renewables finance in Senegal. The country has attracted considerable investments into the renewables sector due to electricity sector reforms. In the first step, the article examines how these reforms drive private sector participation. Second, it analyzes the financing structure of two major renewable power plants. The analysis focuses on financial subordination visible in currency hierarchies that is traced back to colonial power and racialized financial logics. In sum, the article suggests to understand RE finance through the lens of financial subordination in colonial perspective to unravel its racializing dimension.