AFNIS2023: Stakeholders task African governments on policies to attract private investments

African governments have been urged to take responsibility to create and implement conducive policies and regulations to attract private investments, particularly in priority sectors for climate action and green growth.

The call came as Stakeholders in the Natural Resource and Energy Investment sector converged on Abuja Nigeria’s Capital for the second African Natural Resource and Energy Investment Summit 2023, AFNIS, to brainstorm and find positive solutions on how to harness the abundance of natural resources to develop Africa.

The Nigerian Minister of Foreign Affairs, Ambassador Yusuf Maitama Tuggar, said availability, sustainability and affordability of energy resources to the average citizen and businesses should be of utmost priority in order to achieve the envisaged development of the continent’s economy.

 “The African Alliance, if properly nurtured by member States, can evolve into a strategic economic and security arrangement.

“The affordability of energy resources to Nigerians remains top priority in the renewed hope agenda of the present administration,” he said.

Ambassador Maitama, who was represented by the Director, Economic, Trade and Investment, of the Ministry Ambassador Bolaji Akinremi, also said that it was imperative to add the institutionalisation of Ministerial Summit such as the AFNIS in the development of collective capacity.

Ambassador Tuggar explained that it is noteworthy to mention that deliberation on mining and energy resources in the African sphere is crucial to the overall development of the region.

“It is necessary, be it government or private, Industry captains to converge from time to time to chart a course for a more unified robust approach to unlock the potentials of these God given mineral resources for the welfare of our citizens,” he said.

Speaking in the same vein, Senior Director, Africa Finance Corporation, AFC, Mr. Taiwo Adeniji, said that Africa requires an estimated US$250 billion annually to close the climate financing gap, stressing that Africa holds the key to the world transition of the energy sector.

“African countries, particularly Nigeria, should consider utilizing innovative financing instruments and mechanisms to attract private sector financing. Instruments such as Social Bonds, Green Bonds and Loans, Sustainability Bonds and Loans, Carbon Pricing, Debt-for-Climate Swaps, etc. Can and should be deployed to attract private financing,” he said.

Adeniji emphasised that one of the key paths towards the achievement of net-zero is significantly scaling up investments in green projects.

“Africa indeed holds the key to the world’s transition to a sustainable future, being the home to significant proportions of the key transition metals, yet today it not only pays the price for the climate indiscretion of the past, but also struggles in accessing the funds it needs to change the course for a better future;” he said.

According to him, at AFC there is the belief that the most efficient way to transform the continent, without further aggravating the climate situation, is to increase the amount of green energy available within Africa and at the same time develop the industrial capacity of the continent.

“It is estimated that Africa requires about US$250 billion annually to close the climate financing gap. High volumes of finance is required for sustainable infrastructure (clean energy and transport systems, green buildings, etc.).

“The bulk of these resources are expected to come from the private sector;” he added.

The Summit was organized for deliberations, toward a robust Ministerial African Natural Resources and Energy Investment.