Renewable energy in Africa will drive economic growth – Access Bank MD
Access Bank Ghana participated in the Climate Finance for Sustainable Energy Transition in Africa Conference last week at the University of Ghana, Legon.
The conference brought together seasoned professionals from across the sub-region, who shared insights into pitfalls, potentials, and paradoxes of financing sustainable energy transitions in Africa.
Speaking on behalf of the Managing Director of Access Bank Ghana, Olumide Olatunji, during a panel discussion, Oluwaseun David- Akindele, Head of Corporate Communications, Access Bank Ghana, said renewable energy in Africa holds immense potential for revolutionising the continent’s energy landscape, driving economic growth, and combating climate change. However, African countries face significant obstacles in attracting adequate financing for renewable energy projects.
He said, “limited access to capital is a significant challenge African countries face in this pursuit.”
He noted that factors such as the presence of political and economic instability across the continent created an environment of higher perceived risks, deterring potential investors.
He also noted that currency volatility and exchange rate risks, inconsistent or inadequate policies and regulations related to renewable energy, among other factors, posed additional risks for investors and further contribute to limited access to capital.
‘Bridging the funding gap for sustainable energy projects in Africa requires a thoughtful exploration of various financial instruments and mechanisms. These tools serve to attract investments and channel capital towards the development of renewable energy initiatives on the continent, ultimately fostering a transition towards a greener and more sustainable future,” he said.
One avenue to mobilise funds, he noted, was through the issuance of green bonds, which offer a purposeful investment opportunity for individuals and institutions seeking to support renewable energy projects in Africa.
Mr Oluwaseun said Access Bank Plc issued the first Climate Bonds Initiative (CBI), a certified corporate green bond, in Africa in 2019, raising US$41 million from the issuance.
He said, also, in 2022, the bank successfully closed its second green bond issuance, raising US$50 million.
The step-up puttable green bond was issued under the Access Bank’s US$1.5 billion Global Medium-Term Note Programme, and is listed on the main market of the London Stock Exchange.
In addition, Mr Oluwaseun alluded to the importance of collaboration between governments, financial institutions, and development partners for effective mobilisation and allocation of climate finance.
BY TIMES REPORTER
