Unlocking climate finance potential and policy barriers—A case of renewable energy and energy efficiency in Sub-Saharan Africa

Sub-Saharan African is in a unique position to reap the socio-economic and environmental benefits of renewable resources, and the energy efficiency practices as the demand for energy in the continent grows. Assessment of the financing potential and the related obstacles for the financing deployment of renewable energy and energy efficiency sectors mapping will be a step forward to help in mobilizing the financial flows into sectors. With the Sub-Saharan Africa population growth, urbanization, economic growth coupled with the global commitment of Sustainable Energy for All Initiative, the need for accessible clean energy has never been more urgent. This paper aims to assess the renewable energy (RE) and energy-efficient (E.E.) investment potential as well as policy barriers in Sub-Saharan Africa (SSA). Analyzing five investment indicators, using secondary sources of information, and conducting interviews with key stakeholders. The RE and E.E. investment potential, investment gap, and policy barriers in 14 countries from West, Central, Southern, and East Africa was quantified conducted. The result of the study indicates a promising yet very susceptible future for the implementation of RE and E.E. in SSA. To enhance access to electricity, promote energy security, and propel economic growth in an environmentally friendly approach, SSA has to overcome the significant challenge of inadequate private and public funding for the energy sector. The conclusion is that there is a need to address the institutional knowledge gaps and policy gaps that will be key to helping in unlocking the financing potential of RE and E.E. in the continent of Africa. [Display omitted] •There is substantial climate finance investment potential for the private sector in SSA, particularly for deploying RE and EE technologies.•Countries need to treat climate change as a development issue that needs to be addressed systematically in their respective development strategies and policies.•Improved policy and regulatory environment are paramount in scaling up public funding and attracting private sector climate-resilient investments.•Government needs to create significant synergies with the private sector to close the climate finance gap necessary for sustainable development.