How can investment in renewable energies in developing countries be accelerated? This question was on the agenda at the World Economic Forum (WEF), which ended on January 19, 2024 in Davos, Switzerland. At this first major international meeting of the year, ministers and business leaders got together to launch the Network for Mobilizing Clean Energy Investments for the Global South.
The 20 members of the new alliance come from Colombia, Egypt, India, Japan, Malaysia, Morocco, Namibia, Nigeria, Norway, Kenya and South Africa. The network will be chaired by Rania A. Al-Mashat, Egypt’s Minister of International Cooperation, and Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC).
Mobilizing $2,800 billion for the energy transition
“The network will play a crucial role in bringing together public and private players to identify investment needs, break down barriers and find practical solutions for a fair, equitable and sustainable energy transition in the South,” explains the Egyptian Minister for International Cooperation. According to Rania A. Al-Mashat, this network will be a collaborative space for accelerating clean energy capital solutions in emerging market contexts, “through innovative policies, new business models, risk mitigation tools and financing mechanisms”.
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Members of this alliance will be able to exchange best practices in attracting sustainable capital flows. The Clean Energy Investment Mobilization Network for the South aims to mobilize between $2,200 and $2,800 billion over the next few years. Financial mobilization is the sinews of war, especially in Africa, where the challenge of electrification is immense. In fact, the continent receives only 3% of global investment in renewable energies.
This situation is mirrored in other countries of the South, as highlighted in the report “Building Trust through an Equitable and Inclusive Energy Transition” published on January 14, 2024 on the sidelines of the WEF. According to this report, annual investments are set to triple by 2030 in the countries of the South. Last year, these countries attracted just $770 billion in investment for the energy transition.
Jean Marie Takouleu