"Financing costs can be at least two to three times higher than in Europe and North America. As a result, projects remain on the drawing board, and energy costs rise for Africa's consumers," an expert said.
According to Mr Ruto, who is also the Chair of the Committee of African Heads of State and Governments on Climate, by effectively mobilising private capital and securing USD 28 billion of concessional funding by 2030, the African Union can unlock the necessary USD 90 billion in private investment for clean energy that will revolutionise the continent's trajectory and support global climate ambitions.
"This is why the African Development Bank Group is spearheading efforts to unlock Africa's vast renewable energy potential. The Bank no longer funds coal energy projects.
Mr Fadipe, who spoke at the Afreximbank Trade Finance Seminar in Lagos last week, said training and stretch programs with reputable law firms can facilitate knowledge acquisition and enhance technical abilities required for complex transactions in the continent and beyond. "At Sahara Group, we continue to give our people platforms to grow capacity to support our upstream, midstream, downstream, power, and technology business operations across Africa, Asia, Europe and the Middle East. This has resulted in significant cost savings and overall value addition to our operations," he said.
"Costs also vary by capital provider and currency, depending on whether the provider is taking on currency risk, their familiarity with the local market and the base rate in their country of origin. And finally, they vary according to the company or project that is seeking to raise capital," the report said.
Multiple financing instruments need to be scaled up to Africa's energy future because there is a mismatch between the type of capital available and the needs of Africa's emerging clean energy sector, with a particular lack of early-stage and equity financing.
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