KPMG report highlights significant untapped green investment opportunities in Africa
At COP28, KPMG urges investors not to overlook Africa’s climate finance potential and to aid the just global energy transition.
Countries currently unable to meet net zero by 2050
- A new KPMG whitepaper highlights significant untapped green investment opportunities in Africa.
- It comes as Africa needs $277 billion annually until 2030 to meet Paris Agreement targets, however current annual climate finance flows into Africa stand at only $29.5 billion.
- While Africa’s share of global renewable energy investments receives only 3%, the whitepaper details the ample opportunity for investment in renewable energy resources such as wind, solar and low‐carbon hydrogen.
- The untapped promise of wind is particularly marked, with recent research showing that 27 countries in Africa have sufficient wind potential on their own to satisfy the entire continental electricity demand, despite the fact that Africa only uses 0.01% of its wind potential.
Dubai, December 8, 2023 – KPMG has today released a new report highlighting Africa’s significant investment opportunity in renewable energy, detailing nearly $250 billion untapped green investment opportunities in areas such as solar, wind and hydrogen.
As it stands, Africa will need $277 billion annually between 2020 and 2030 to reach its Paris Agreement targets and implement its Nationally Determined Contributions, to contribute to limiting global warming to 1.5°C, according to the Climate Policy Initiative. Despite this, it currently only receives $29.5 billion in annual climate finance, revealing the significant inflows of both public and private finances required from domestic and international sources.
The report ‘Climate Investing in Africa’ reveals that, as Africa fast approaches an anticipated period of economic prosperity, and as a home to mineral and resource rich land, there is an obvious yet untapped investment opportunity for private sector financiers.
It is unlikely that global climate change mitigation efforts can be successful without taking Africa into consideration. The continent offers some of the planet’s biggest and most profitable options for investments in the global energy transition,
KPMG’s ESG Africa Partner Lead,
“Climate investors are looking ahead to new and emerging markets to deploy their funds. It is vital that there is a nuanced and sophisticated understanding of Africa’s potential, and that private investors appreciate the unique advantages and characteristics of the region with respect to not just climate investing, but the broader contribution to the global energy transition from an environmental and social impact perspective.”
The report calls on the investor and green finance communities to double down on their climate investments in Africa, in order to ensure a just transition, unlock Africa’s energy potential and expand the continent’s climate related investment flows and realize the benefits of clean, sustainable power.
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