Channeling capital to climate finance has been a matter of concern to major players in the energy industries. The energy markets have been talking tough on the weakness of the IMF and world bank as speculated by African leaders through the president of Kenya in the climate summit held in Paris around June.
International banks have been accused of sending more capital into developed economies and giving loans instead to the LDCs. Less Developed Economies, especially those in the African continent are beginning to consider other measures for developing their frontiers rather than taking loans that have an extortionist kind of interests.
The compliance credit market born out of a country's economic policies, through the private sector participation tends to provide a favorable market for energy distribution. One thing that is remarkable about Africa's development is the inequitably distribution of energy. This has cause the breakdown of industrialization. When private partnership comes to a market where their capital is not at risk, competition is healthy and the distribution channels are enable, thereby causing for industrialization which is a panacea for development as seen in the case of California.
Energy is a huge problem in Africa. In this dispensation, most African nation cannot proudly say they can supply 50 percent of their population with energy. That is about the lowest in modern history comparison.
There is also the factor of insecurity which has plagued the energy sector. Public office holder are complacent about birthing an energy driven economy. An economy that cannot protect the capital of investors would shy away from. Such is the case of most sub-saharan African state that have been plagued by terrorism, Nigeria as the biggest victim here
Most of the players are not very sincere. This also have frightened investors with insincere gestures.
The fx and dfx of the markets around African countries have also given a wrong signal on investment. Leaders are now of the view that instead of seeking for loans to build energy hubs, direct capital is the only way out of this abnormally.
Most African nations have decided to deploy the Glasgow Coup of 2022.
Nigeria typically wants to electrify her economy to become the beauty that it used to be in the comity of nations.
Oil and gas economy which has found it way in the African continent can become the next big trade. African leaders now wants to sell their products in local currency and not the US Dollars. That has sent some cold down the world market in that last few days.
Some African nations have also legislated on climate change. Not many have done this in some continents. That goes a long way to show how much African leaders wants to operate freely. The climate change Act of Parliament, having passed all the necessary stages and becoming a law is a huge step in achieving this feat.
The establishment of a transition office in some nation capitals is an identifying truth that the charge is on and belong this dream will be achieved. For finance experts, this is a good news that would suggest one to consider investing in Africa's energy development.
