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Event

UN Financing for Development Forum side event: Financing clean energy in Sub-Saharan Africa – challenges and promising solutions

Together with the Permanent Mission of Sweden to the UN, SEI’s Finance for Sustainable Development programme organized a side event at the Financing for Development Forum in New York. The session included a roundtable discussion focused on financing renewable energy in Sub-Saharan Africa.

23 April 2024 at 13:30 EDT

ending at 15:00 EDT

Investing in renewable energy projects is crucial for achieving the SDGs and the Paris Agreement goals. Currently, Sub-Saharan Africa is the region with the greatest need for additional energy to meet the demands of its growing economies and populations. For example, the IEA estimates that only in solar PV, the region would need 130GW installed by 2030 to meet the Sustainable Africa Scenario. At the average project size of the last three years, this would amount to more than one project being commissioned every day from now until 2030. By comparison, in 2023, only 8 solar PV projects reached financial close in all of Africa.

SEI’s Finance for Sustainable Development programme and the Swedish Mission gathered experts from UN entities, International Finance Institutions, Academia and the private sector to discuss the challenges and promising solutions to financing clean energy in Sub-Saharan Africa. The event aimed to explore the complexities of financing renewable energy projects in challenging settings characterized by high sovereign debt, inflation, political instability, and other risk factors, and to discuss the role of blended finance tools.

During the event, SEI researchers Daniel Duma and Miquel Munoz Cabré also presented findings from their research project The role of risk mitigation in renewable energy investments in Sub-Saharan Africa.

Session objectives

  1. To explore the complexities of financing renewable energy projects in challenging regional settings characterized by high sovereign debt, inflation, political instability and other risk factors.
  2. To share insights into challenges at the project level through SEI’s research on risk mitigation instruments for utility-scale renewable energy investments in Sub-Saharan Africa.
  3. To discuss the practical application of blended finance tools and their role in overcoming barriers to project financing.
  4. To assess the potential for scaling up renewable energy investments in Sub-Saharan Africa and its implications for the global climate finance narrative.

This event is by invitation only.

SEI attendees

Carly Evaeus
Carly Evaeus

Fellow

SEI Headquarters

Daniel Duma
Daniel Duma

Senior Research Fellow

SEI Headquarters

Miquel Muñoz Cabré

Senior Scientist

SEI US