High Capital Costs Are Stalling Clean Energy Investment Across Africa, New Report Finds
As countries gear up for climate finance negotiations at COP29, a new report from Clean Air Task Force (CATF) finds that high capital costs are slowing investments in clean energy projects across the continent. As African nations strive to expand energy access to fuel economic growth, the study reveals that the average Weighted Average Cost of Capital (WACC) in Africa stands at an alarming 15.6% – over three times higher than in developed regions like Western Europe and the U.S., where rates typically range between 2% and 5%.
Photo courtesy of USAID U.S. Agency for International Development.
Source: Clean Air Task Force (link opens in a new window)
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