102
N. Kidunduhu
Governments should collaborate with international financial institutions to develop the capacity of local banks to assess and fund renewable
energy projects and thus grow investment funds from domestic financial
resources. Morocco is a good example in this regard with its Morocco
Sustainable Energy Finance Facility (MorSEFF), launched jointly by the
European Bank for Reconstruction and Development (EBRD) which has
now channelled 80 Million Euros through local participating banks into
energy projects in the country.
100
3.4.5 Policy Recommendations
Although African countries have international climate change commitments, their national laws either contradict or are at odds with their
international goals. There is, therefore, need for African countries to align
their national plans and policies with their international commitments
as well as to synchronize the national policy across all the government
departments.
The continent also needs to address its administrative deficiencies
by building capacity for the different technical, economic and market
commercialization aspects of the transition. This can either be through
using resource revenues for training or by putting in place local content
drivers that ensure knowledge transfer from international investors.
African countries should consider developing policies on cleaner
cooking to replace traditional biomass such as charcoal and fuelwood,
which, dominates Africa’s energy mix. Countries such as Ghana and
Rwanda are already leading examples in this regard having collaborated
with the Global Alliance for Clean Cookstoves to promote the diffusion
of clean cooking stoves.
In order to invite new investments and sustain the notable growth
of renewables in the continent, African countries should also institute
fair and stable tax policies. The United State’s Production Tax Credit
(PTC) is a good example of such a policy. It essentially offers the necessary financial support for the first decade of a renewable energy facility’s
100 European Bank for Reconstruction and Development, ‘Morocco SEFF’ (2015), https://www.
ebrd.com/work-with-us/projects/psd/morocco-seff-morseff.html, accessed 9 September 2019.
N. Kidunduhu
Governments should collaborate with international financial institutions to develop the capacity of local banks to assess and fund renewable
energy projects and thus grow investment funds from domestic financial
resources. Morocco is a good example in this regard with its Morocco
Sustainable Energy Finance Facility (MorSEFF), launched jointly by the
European Bank for Reconstruction and Development (EBRD) which has
now channelled 80 Million Euros through local participating banks into
energy projects in the country.
100
3.4.5 Policy Recommendations
Although African countries have international climate change commitments, their national laws either contradict or are at odds with their
international goals. There is, therefore, need for African countries to align
their national plans and policies with their international commitments
as well as to synchronize the national policy across all the government
departments.
The continent also needs to address its administrative deficiencies
by building capacity for the different technical, economic and market
commercialization aspects of the transition. This can either be through
using resource revenues for training or by putting in place local content
drivers that ensure knowledge transfer from international investors.
African countries should consider developing policies on cleaner
cooking to replace traditional biomass such as charcoal and fuelwood,
which, dominates Africa’s energy mix. Countries such as Ghana and
Rwanda are already leading examples in this regard having collaborated
with the Global Alliance for Clean Cookstoves to promote the diffusion
of clean cooking stoves.
In order to invite new investments and sustain the notable growth
of renewables in the continent, African countries should also institute
fair and stable tax policies. The United State’s Production Tax Credit
(PTC) is a good example of such a policy. It essentially offers the necessary financial support for the first decade of a renewable energy facility’s
100 European Bank for Reconstruction and Development, ‘Morocco SEFF’ (2015), https://www.
ebrd.com/work-with-us/projects/psd/morocco-seff-morseff.html, accessed 9 September 2019.