Head of Corporate Communications at Access Bank Ghana, Oluwaseun David- Akindele has said that the bank remains committed to financing renewable energy in Africa.
He said while renewable energy in Africa held immense potential for revolutionising the continent's energy landscape, driving economic growth, and combating climate change, African countries were faced with significant obstacles in attracting adequate financing for renewable energy projects.
Speaking at the Climate Finance for Sustainable Energy transition in Africa Conference in Accra, he said bridging the funding gap for sustainable energy projects in Africa required a thoughtful exploration of various financial instruments and mechanisms.
He said one avenue to mobilise funds was through the issuance of green bonds, which offered a purposeful investment opportunity for individuals and institutions seeking to support renewable energy projects in Africa.
He noted that limited access to capital was a significant challenge African countries faced in their pursuit of sustainable energy.
Other factors
Oluwaseun said other factors such as the presence of political and economic instability across the continent created an environment of higher perceived risks, deterring potential investors.
He also said currency volatility and exchange rate risks, inconsistent or inadequate policies and regulations related to renewable energy, among other factors, posed additional risks for investors and further contributed to limited access to capital.
He pointed out that Access Bank Plc issued the first Climate Bonds Initiative (CBI)-certified corporate green bond in Africa in 2019, raising US$41 million from this issuance.
Also, in 2022, the bank successfully closed its second green bond issuance, raising $50 million.
The step-up puttable green bond was issued under the Access Bank $1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.
In addition, Oluwaseun alluded to the importance of a collaboration between governments, financial institutions, and development partners for effective mobilisation and allocation of climate finance.
He revealed that in 2022, Access Bank Plc partnered the Lagos Business School (LBS) to fund the school’s 350KW and 152KWh hybrid power solutions project through its Sustainable Use of Natural Resources and Energy Finance (SUNREF) facility.
SUNREF is a green energy facility availed to Access Bank by the Agence Française de Développment (AFD) to support Nigeria’s journey toward carbon emissions’ reduction and a cleaner environment.
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