Paris, France, 7 December 2015 (ECA) – A major partnership was sealed this week with the signing of a memorandum of understanding (MOU) between the United Kingdom and United States that will lay the groundwork for increased investment in renewable energy to significantly broaden access and transform economies across the African continent.
The MOU was signed at the COP 21 Africa Pavilion by the UK International Development Minister, Nick Hurd and Associate Administrator of USAID, Eric Postel during an event entitled, Financing Sustainable Pathways for Development. The Session focused on ways to fund Africa’s clean energy transformation agenda.
Organized by the Economic Commission for Africa (ECA) and moderated by Fatima Denton Director, Special Initiatives Division (SID) of the Economic Commission for Africa (ECA), the panel featured climate change opinion leaders including: Ms. Ngozi Okonjo-Iweala, Former Minister of Finance and Co-ordinating Minister for the Economy of Nigeria; Lord Nicholas Stern, Co-Chair of the Global Commission on the Economy and Climate; Ms. Hela Cheikhrouhou, Executive Director of the Green Climate Fund; Andrew Norton of the International Institute for Environment and Development;and Kurt Lonsway of the Africa Development Bank.
Minister Nick Hurd said that partnership was key to addressing the African energy challenge, while Mr. Eric Postel of USAID drove home the message that good ideas hardly lack funding; sharing experiences of President Barack Obama’s Power Africa initiative which he said has already attracted thousands of investors and $21bn in investment pledges. He noted that there were significant funding opportunities from Africa’s pension funds from which sound development projects could benefit.
Lord Stern highlighted examples of innovative financing for infrastructural development from Ethiopia and noted that the idea for the new BRICS Bank originated in Africa and provides opportunities for low cost lending to the continent.
Okonjo-Iweala drew on current statistics on Africa’s demographic dividend, which suggests that the youth population in Africa will surpass that of China within a few decades, and also pointed out the windows of opportunities in energy, agriculture, land use and innovation.
Ms. Hela Cheikhrouhou declared that the “Green Climate Fund would fail if it does not deliver for Africa," adding that Africa is a priority in virtually all the programmes of the Fund.
Andrew Norton, Director, International Institute for Environment and Development (IIED) said it is now generally accepted that extreme inequalities and generalized poverty can destabilize any system - from the climate to the global economy.
For his part, Kurt Lonsway of the African Development Bank highlighted that the bank would be broadening its investment focus to include small-scale off-grid energy systems. This, in tandem with the AfDB’s recent announcement of its landmark initiative to solve Africa's huge energy deficit by 2025.
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