Renewable Energy Financing in Africa - A review

Abstract

The continent of Africa is tasked with the challenge of providing electricity access to nearly 600 million people living without access to reliable supply of electricity. The vast potential of renewable and nonrenewable energy resources found on the continent, if successfully exploited, is capable of unlocking vast opportunities for economic development and poverty reduction for millions of people living on the continent. A number of proposed global and continental initiatives on energy development in Africa have specifically highlighted the significance of Renewable Energy (RE) resources towards achieving universal electricity access in Africa. Nevertheless, financing remains a major bottleneck to RE development which needs to be addressed in the continent’s drive towards achieving sustainable energy development. This paper aims to presents a highlight of the current energy investment infrastructure in Africa, and also assesses the trends in investment as well as highlighting the roles of the major investors in RE. Finally, the paper looks at the existing barriers and opportunities for RE investment.