ANALYSIS OF POLITICAL ECONOMY OF FOSSIL FUEL FINANCING AND DEBT IN AFRICA

The document examines the tension between Africa's fossil fuel endowments and the global push for decarbonization, highlighting the risks of stranded assets and the dominance of Global North financing. It argues for a Just Transition that ensures energy access while moving toward low-carbon sources.

• Africa possesses significant fossil fuel reserves, including approximately 7.6% of the world's proven oil reserves and 7.5% of proved natural gas reserves as of 2015, yet it has the world's lowest per capita energy consumption.
• There is a high risk of 'stranded assets' in Africa, where fossil fuel resources may be devalued or become unmonetizable due to global carbon emission reduction targets, potentially leading to massive economic losses and debt crises.
• Fossil fuel financing in Africa is dominated by the Global North, specifically the United States, United Kingdom, France, and China, with the China Development Bank identified as the single largest financier of fossil fuel projects and companies in the region between 2016 and mid-2021.
• Between 2016 and June 2021, public and private financial institutions invested at least $132.3 billion into African fossil fuel companies and projects, with $82.5 billion in corporate finance and $49.8 billion in direct project finance.
• The document argues that fossil fuel extraction often fails to deliver promised development for Africans, as profits accrue to the Global North while local communities face displacement, pollution, and human rights violations.
• A 'Just Transition' is proposed as a gradual shift from fossil fuels to clean energy that prioritizes energy access and social justice, ensuring that the costs of decarbonization do not fall disproportionately on the poorest populations.
• Technical and market barriers, including high initial costs, reliability concerns, and lack of energy storage technology, have contributed to the continued reliance on and financing of fossil fuels over renewables.

APA

DUBE, N. (n.d.). ANALYSIS OF POLITICAL ECONOMY OF FOSSIL FUEL FINANCING AND DEBT IN AFRICA. African Forum and Network on Debt and Development. https://afrodad.org/sites/default/files/publications/Analysis-of-Political-Economy-of-Fossil-Fuel-Financing-and-Debt-in-Africa.pdf

Chicago

DUBE, NQOBIZITHA. ANALYSIS OF POLITICAL ECONOMY OF FOSSIL FUEL FINANCING AND DEBT IN AFRICA. African Forum and Network on Debt and Development, n.d. https://afrodad.org/sites/default/files/publications/Analysis-of-Political-Economy-of-Fossil-Fuel-Financing-and-Debt-in-Africa.pdf.

Wikipedia

{{cite report |last1=DUBE |first1=NQOBIZITHA |title=ANALYSIS OF POLITICAL ECONOMY OF FOSSIL FUEL FINANCING AND DEBT IN AFRICA |publisher=African Forum and Network on Debt and Development |url=https://afrodad.org/sites/default/files/publications/Analysis-of-Political-Economy-of-Fossil-Fuel-Financing-and-Debt-in-Africa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dubendanalysis, author = {DUBE, NQOBIZITHA}, title = {{ANALYSIS OF POLITICAL ECONOMY OF FOSSIL FUEL FINANCING AND DEBT IN AFRICA}}, institution = {African Forum and Network on Debt and Development}, url = {https://afrodad.org/sites/default/files/publications/Analysis-of-Political-Economy-of-Fossil-Fuel-Financing-and-Debt-in-Africa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }