Financing Renewable Energy in Developing Countries: Drivers and Barriers for Private Finance in Sub-Saharan Africa – A Study and Survey by UNEP Finance Initiative on the Views, Experiences and Policy Needs of Energy Financiers

The technical document is based on the results of a survey conducted among 38 financial institutions, primarily from the private sector, with vast experience in financing renewable energy projects in developing countries. It outlines the current obstacles to sustainable energy solutions in Africa. In particular, it highlights the need for an estimated 7,000 megawatts (MW) of new generation capacity annually to meet the continent’s growing energy demands. It notices that adequately financing the development of the energy sector in sub-Saharan Africa is expected to require the mobilization of funds in the order of USD 41 billion per year, which represents 6.4 per cent of the region’s GDP. A large financing gap exists, therefore, in order to close this gap, and the mobilization of private investment and finance, is seen as crucial.