Mobilising private-sector investment to mitigate climate change in Africa

This briefing by the Stockholm Environment Institute examines the role of private-sector investment in climate change mitigation within Sub-Saharan Africa, focusing on UNFCCC-backed instruments and national policies to identify effective levers for mobilising finance to meet nationally determined contributions (NDCs).

• African countries have set ambitious targets for their nationally determined contributions (NDCs), but the required resources exceed available domestic and international public finance, necessitating measures to direct private funding toward climate investments.
• The Clean Development Mechanism (CDM) has been a primary tool for private-sector engagement in mitigation, mobilising over USD 400 billion globally. In Sub-Saharan Africa, 105 single projects and 265 component project activities in energy supply, energy use, and land use have triggered cumulative investments of at least USD 8 billion.
• The Climate Investment Funds (CIF) are among the largest climate financing institutions, capitalised with USD 8.3 billion and aiming to attract USD 58 billion in co-financing. Approximately 30% (USD 2.7 billion) is earmarked for private-sector projects, with USD 1.01 billion approved across 10 Sub-Saharan African countries, specifically focusing on Mali, Kenya, Ethiopia, and South Africa.
• The Green Climate Fund (GCF) has received USD 10.3 billion in pledges, but African entities have not yet accessed the fund on their own initiative. To date, only three mitigation projects in Sub-Saharan Africa have been approved, all led by international private-sector actors: Deutsche Bank, Conservation International, and Acumen Fund.
• South Africa's Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) is a mature national scheme that transitioned from feed-in tariffs to competitive auctioning. As of March 2017, it included 102 projects, procuring 6,376 MW of renewable energy capacity and mobilising USD 20.5 billion in investment.
• Public sector-led initiatives generally result in lower financial volumes than those allowing the private sector more decision-making leeway. Competitive approaches, such as auctions for power or emission reductions, are noted for their ability to raise capital and lower mitigation costs.

APA

Hoch, S., Friedmann, V., & Michaelowa, A. (2018). Mobilising private-sector investment to mitigate climate change in Africa. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2018/05/private-finance-for-sub-saharan-africa-1.pdf

Chicago

Hoch, Stephan, Valentin Friedmann, and Axel Michaelowa. Mobilising private-sector investment to mitigate climate change in Africa. Stockholm Environment Institute, 2018. https://www.sei.org/wp-content/uploads/2018/05/private-finance-for-sub-saharan-africa-1.pdf.

Wikipedia

{{cite report |last1=Hoch |first1=Stephan |last2=Friedmann |first2=Valentin |last3=Michaelowa |first3=Axel |title=Mobilising private-sector investment to mitigate climate change in Africa |publisher=Stockholm Environment Institute |date=April 2018 |url=https://www.sei.org/wp-content/uploads/2018/05/private-finance-for-sub-saharan-africa-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hoch2018mobilising, author = {Hoch, Stephan and Friedmann, Valentin and Michaelowa, Axel}, title = {{Mobilising private-sector investment to mitigate climate change in Africa}}, institution = {Stockholm Environment Institute}, year = {2018}, month = apr, url = {https://www.sei.org/wp-content/uploads/2018/05/private-finance-for-sub-saharan-africa-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }