Access Bank has joined forces with governments, financial institutions, and development partners to effectively mobilize and allocate climate finance.
The partnership was revealed during the Climate Finance for Sustainable Energy Transition in Africa Conference held at the University of Ghana, Legon.
The conference brought together seasoned professionals from across the sub-region, who shared insights into the challenges and opportunities of financing sustainable energy transitions in Africa.
During a panel discussion, Oluwaseun David-Akindele, Head of Corporate Communications, Access Bank Ghana, spoke on behalf of the Managing Director-Access Bank Ghana.
He emphasized that renewable energy in Africa holds immense potential for transforming the continent’s energy landscape, driving economic growth, and combating climate change.
However, African countries face significant obstacles in attracting adequate financing for renewable energy projects.
One major challenge is limited access to capital, which is exacerbated by political and economic instability across the continent, deterring potential investors.
Additionally, factors like currency volatility, exchange rate risks, and inconsistent or inadequate policies and regulations related to renewable energy pose further barriers to accessing capital.
To address these issues, Mr. David-Akindele suggested exploring various financial instruments and mechanisms to bridge the funding gap for sustainable energy projects in Africa. Green bonds, for instance, offer purposeful investment opportunities for individuals and institutions looking to support renewable energy initiatives in the continent.
Access Bank has already made significant strides in this direction. In 2019, the bank issued the first Climate Bonds Initiative (CBI)-certified corporate green bond in Africa, raising US$41 million. In 2022, the bank successfully closed its second green bond issuance, raising US$50 million.
These funds were directed towards renewable energy projects, such as the partnership with Lagos Business School to fund their hybrid power solutions project through the Sustainable Use of Natural Resources and Energy Finance (SUNREF) facility.
SUNREF, provided to Access Bank by the Agence Française de Développement (AFD), supports Nigeria’s journey towards carbon emissions reduction and a cleaner environment.
Access Bank’s commitment to sustainable renewable energy can also be seen in its involvement in various projects across Africa, including the Lake Turkana Wind Power project in Kenya, the M-Kopa Solar project in East Africa, and South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), among others.
Access Bank, with a presence in more than 700 branches across three continents and service outlets in 18 countries, remains dedicated to financing renewable energy initiatives in Africa.