Financing the Future of Energy

The report examines the energy landscape in Africa, highlighting a forecast that energy demand will double by 2040 to over 1,600 TWh. It argues that while sufficient funding exists, access is hindered by high capital costs and perceived risks. The document proposes the '3Ds' (Decarbonization, Decentralization, and Digitalization) as drivers for the power sector and advocates for de-risking mechanisms, green bonds, and transition frameworks to attract private investment and ensure a just energy transition.

• Africa faces a significant energy deficit, with approximately 54% of the population lacking electricity access, which hinders economic growth and socio-economic stability.
• Energy demand in Africa is projected to grow substantially, expected to more than double by 2040, reaching over 1,600 TWh.
• The transition of the power sector is driven by 'the 3Ds': Decarbonization (shifting to renewables), Decentralization (moving from centralized to decentralized systems), and Digitalization (using digital technology).
• Clean energy investments in emerging and developing economies must increase from $150 billion in 2020 to over $1 trillion by 2030 to align with a net-zero scenario by 2050, yet capital costs in these regions can be up to seven times higher than in advanced economies.
• Green bonds are a viable instrument for clean energy, with the Development Bank of Southern Africa (DBSA) launching a €200 million green bond facility in January 2021 to support climate mitigation and adaptation projects.
• Gas power is identified as a credible transition energy source for countries like Nigeria, Senegal, and Mozambique because it produces 50% less carbon dioxide than coal and utilizes existing infrastructure.
• The continent possesses significant potential to become a market for battery storage manufacturing due to mineral reserves, specifically vanadium in South Africa and lithium in Zimbabwe and the Democratic Republic of the Congo.
• To attract private investment, the report recommends de-risking projects through debt guarantees, insurance, blended finance, and the implementation of corporate renewable power purchasing agreements (CPPAs).

APA

World Economic Forum (2021). Financing the Future of Energy. https://www3.weforum.org/docs/WEF_Regional_Action_Group_for_Africa_2021.pdf

Chicago

World Economic Forum. Financing the Future of Energy. 2021. https://www3.weforum.org/docs/WEF_Regional_Action_Group_for_Africa_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Financing the Future of Energy |date=September 2021 |url=https://www3.weforum.org/docs/WEF_Regional_Action_Group_for_Africa_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021financing, author = {{World Economic Forum}}, title = {{Financing the Future of Energy}}, institution = {World Economic Forum}, year = {2021}, month = sep, url = {https://www3.weforum.org/docs/WEF_Regional_Action_Group_for_Africa_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }