The COP28 President-Designate, Dr. Sultan Al Jaber, has unveiled a finance initiative from the United Arab Emirates (UAE) aimed at providing $4.5 billion to support the development of clean energy in Africa.
This announcement was made during Dr. Al Jaber’s keynote address at the inaugural African Climate Summit in Nairobi, Kenya.
The initiative represents a collaborative effort involving public, private, and development capital from UAE institutions, including the Abu Dhabi Fund for Development, Etihad Credit Insurance, Masdar, and AMEA Power.
Africa50, an investment platform established by African governments and the Africa Development Bank, has joined forces with the UAE finance initiative.
Africa50’s role is to identify initial projects and connect with local implementing entities.
Initiative aims to boost clean energy access in Africa
Dr. Al Jaber, a strong advocate for tripling global renewable energy capacity by 2030 and improving access to finance, emphasized the need for African leaders to enhance policy and regulatory frameworks to attract long-term investments in clean and renewable energy.
The initiative focuses on investments in African countries with clear transition strategies, improved regulatory frameworks, and comprehensive plans for grid infrastructure development, integrating supply and demand.
In sub-Saharan Africa, approximately 600 million people lack access to electricity. Expanding clean energy access is vital for socioeconomic development.
However, current investment levels in African renewables are insufficient, representing only 2% of the global total and falling short of the $60 billion per year needed by 2030.
This initiative aims to bridge the investment gap by fostering collaboration among key stakeholders to expedite infrastructure development, energy generation, and distribution solutions, with the ultimate goal of achieving universal clean energy access.
The initiative operates within the framework of Etihad 7, a development platform launched by the UAE during the 2022 Abu Dhabi Sustainability Week.
Etihad 7, supported by the Ministry of Foreign Affairs, strives to provide clean electricity to 100 million people in Africa by 2035.
The Abu Dhabi Fund for Development and Etihad Credit Insurance are providing the initial funding to kick-start the initiative, catalyzing private sector engagement.
The Abu Dhabi Fund for Development received $1 billion in financial assistance to address infrastructure needs and mobilize private investments.
Etihad Credit Insurance contributes $500 million in credit insurance to mitigate risk and unlock additional private capital for sustainable development projects.