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Delivering modern energy to all Africans will require nearly $25 billion in annual spending by 2030, according to a new report from the International Energy Agency (IEA) and the African Development Bank Group (AfDB).
This is a small amount in the context of global energy spending – equivalent to the investment needed to build one new LNG terminal a year, the report said, adding that the international community has a significant role in scaling up clean energy investment in Africa.
“The African continent has huge clean energy potential, including a massive amount of high-quality renewable resources. But the difficult backdrop for financing means many transformative projects can’t get off the ground,” said IEA Executive Director Fatih Birol.
Concessional finance, or funding from development finance institutions and donors, can be a crucial catalyst.
Concessional capital of around $28 billion per year is needed to mobilise $90 billion of private sector investment by 2030, a more than tenfold increase from today, the report said, indicating finance originating from or disbursed through local channels must increase nearly threefold by the end of the decade.
(Writing by P Deol; Editing by Anoop Menon)
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