Introduction

This chapter aims at introducing the book by presenting its focus, the main objectives and the scope of the analysis. In addition, it presents the content of each chapter in order to provide an overview of the book’s structure and to guide the reader.

Conclusions and Policy Recommendations

This chapter aims at synthesising the conclusions of the preceding chapters and it presents specific policy recommendations to foster the redirection of financial flows towards clean energy access solutions in sub-Saharan Africa.

Annex

This annex includes the following tables discussed in previous chapters of the book: (i) definition of the Tiers of the Multi-Tier Framework (MTF) initiative; (ii) population with access to electricity and clean cooking in African countries; (iii) risks associated with investment opportunities and stakeholders; (iv) the de-risking matrix; (v) carbon tax and emission trading systems; (vi) MSCI market classification framework and requirements.

Risk Mitigation Instruments Targeting Specific Investment Risks

This chapter focuses on instruments aimed at mitigating specific investment risks, including political, credit, currency and liquidity risks. It explores solutions emanating from both the public and private sectors.

Risk Analysis and Mitigation Strategy Identification

Before exploring risk mitigation solutions available to public and private actors, this chapter first focuses on the identification and definition of investment risks associated with clean energy access solutions in sub-Saharan Africa. It provides the reader with a comprehensive understanding of the hurdles linked to clean energy access financing across the region.

Public Policies and Initiatives in the Energy Sector

This chapter focuses on the public sector and the tools at its disposal to decrease the risk perception in the clean energy sector in sub-Saharan Africa, encompassing policies, regulations and specific initiatives. It particularly targets policy-makers across the region, as well as development institutions supporting government agencies.

Business Model Adaptation

This chapter primarily targets project developers and managers. Apart from the public policies and initiatives, as well as the private financial schemes previously presented, private actions emanating from the persons behind clean energy access projects have also a crucial role to play in the allocation of capital. Capital providers, profit-oriented or not, usually value the way a business is conducted, including how potential risks are managed as well as the capacities of the team to deal with complex situations.

Further Areas of Work

This book presented investment risks associated with the sub-Saharan African clean energy industry and an overview of risk mitigation strategies and innovative financing schemes available to public and private players, while focusing on the power and clean cooking sectors and specific energy resources. Starting from this basis, we identified the following areas for future work: (i) the quantification of investment risks; (ii) the selection of risk mitigation actions and their impact on the cost of capital; (ii) the exploration of additional sectors and energy resources; (iv) an in-depth analysis of subsidy reforms.

Direct and Indirect Investments in the Energy Sector

This chapter focuses on financial investments, coming either from public or private asset managers and institutions. It has two main targeted readers (without any exclusion): (i) public and private capital providers, with the objective of presenting traditional and alternative financial instruments and schemes capable to align risk-return profiles of several investment opportunities in the clean energy sector, (ii) project developers, in order to increase awareness of the financial mechanisms available in the market.

The Role of Multilateral Agencies and Development Banks

This chapter concentrates on multilateral and development agencies, either located in Africa or pursing activities in the continent. The main objective is to understand what are their role in the financing of clean energy access in sub-Saharan Africa.