Financing clean energy in Africa
Although Africa accounts for one-fifth of the global population, the region currently attracts only 3% of global energy investment. By 2030, energy investment needs to double to over USD 200 billion per year, in order for African countries to achieve all their energy-related development goals, including universal access to modern energy, while meeting in time and in full their nationally determined contributions. Financing Clean Energy in Africa, a World Energy Outlook Special Report, builds on the key findings from the Africa Energy Outlook 2022, which introduced the Sustainable Africa Scenario (SAS), and charts innovative investment solutions across the continent that are critical to scale up energy investment. It develops a theory of change based on the positive spillover effects of increasing the availability of affordable capital for clean energy projects. Currently, the cost of capital for energy projects in African countries is at least 2-3x higher than in advanced economies and China, which hinders investment by raising project costs.