The minister said that available data suggests that out of the $2.3 trillion allocated for investment in renewable energy worldwide, only $55 billion has been invested in Africa, due to inconsistent policies.

He made these remarks in an interview with journalists after his presentation on climate finance at the Africa Climate Summit 2023 in Nairobi, Kenya, on Monday.

“It is important for us to develop partnerships among ourselves with the aim of creating a regional policy environment that can incentivize investment,” he said. “We must collaborate, share knowledge, and have harmonized regional regulations so that, regardless of the political environment, the regulations are consistent and sound. This should help to reduce the perceived risk of investing in Africa and allow us to attract the level of investment we need.”

Dr. Adam added that the international capital market is not favourable to Africa in terms of access to capital.

“The international capital market is not favourable to Africa when it comes to access to capital because they often side with what we call perceived risk,” he said. “Perceived risk is not real risk; it is simply a perception in someone’s mind that this country or continent does not deserve, does not have what it takes to add value to any investments they bring in and thereby give them a return on their investment.”

“That is the perception. But in reality, we have measures and policies in Africa that reward investments. Therefore, the reason for the perceived risk needs to be addressed.”