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AfrElec INVESTMENT AfrElec

UN, African Energy Chamber

aim to boost private investment

in African clean energy

AFRICA THE UN and the African Energy Chamber need up to $500bn to fill the funding gap caused
(AEC) have launched the Team-Energy Africa by the pandemic.
initiative in a bid to unlock up to $500bn of The latest initiative puts renewable energy at
financing for the clean energy sector across the centre of global efforts to unlock public and
the continent as it invests in post-coronavirus private investment in Africa. It aims to meet the
(COVID-19) recovery. UN’s Sustainable Development Goal (SDG) 7,
The AEC said in a statement that it was part- which is to ensure access to affordable, reliable,
nering with the United Nations (UN) Economic sustainable and modern energy for all. At pres-
Commission for Africa (ECA) and the Secretar- ent, nearly 600mn people across the continent
iat of Sustainable Energy for All (SEforALL) to lack access to electricity, while 900mn lack access
create a new investment regime that would act as to clean cooking fuel.
a catalyst for up to $500bn of investment. “In less than eight years, we must achieve
“Africa has abundant energy sources. Look- SDG7. Access to clean and affordable energy
ing at renewables alone, we have 20,000 MW underpins other sustainable development goals.
of geothermal, 350,000 MW of hydro, 110,000 As we plan for a global energy transition, we
MW of wind and abundant solar irradiation. Yet must put people first. The transition must be
about 590 million go without access to electric- just, equitable and inclusive. Countries must be
ity,” stated Linus Mofor, senior environmental able to identify their own pathways to develop
affairs officer at ECA’s African Climate Policy a least-cost approach to the transition,” stated
Centre. Tracey Crowe, chief of staff at Sustainable Energy
“African countries need plenty of secure, for All.
affordable and reliable energy if we are to recover “Energy access and economic growth must
from the pandemic, provide better health and go hand in hand,” Crowe said. “Governments
education, industrialize and utilize the free also need to ensure policy and enabling environ-
trade area and boost economic growth and ments are in place. We also need mechanisms to
reduce poverty,” Mofor continued. “This is the allow investment, of which a significant amount
paradox of the energy situation. We are looking must come from the private sector, ensuring ade-
at an investment of $500bn. Where is that going quate and timely capital is available for energy
to come from? That is the idea of Team-Energy solutions.”
Africa.” Team-Energy Africa aims to unite African
The Team-Energy Africa initiative focuses investors and partners to accelerate financing of
on three overlapping concepts – namely, sus- Africa’s clean energy transformation. Emphasis-
tainability, governance and finance. By support- ing the role of the private sector as an engine of
ing countries that embrace sustainability and growth, productivity, innovative financing and
address key governance challenges to unlock inclusivity, the initiative brings together Africa’s
private-sector investment in clean energy, private sector and investors in clean energy to
Team-Energy Africa is committed to unlocking join forces and work with member states, devel-
critical capital, fostering an enabling environ- opment partners and international financiers to
ment for investment in Africa and ushering in a mobilise much-needed clean energy finance.
new era of energy access and growth while accel- The AEC is a trade body that brings together
erating Africa’s energy transition. African governments and energy companies for
The UNECA has said in 2020 that Africa may the purpose of fostering private investment.™

P6 www. NEWSBASE .com Week 10 10•March•2022