Billions of dollars have been pledged for Africa’s clean energy transition, yet many renewable energy projects across the continent are still failing to get off the ground as countries struggle with soaring financing costs driven by a financial rule known as the “sovereign ceiling," experts say.
Analysts and development finance specialists say the rule, which ties the creditworthiness of projects to the sovereign rating of the country where they operate, is making commercially viable renewable energy projects appear far riskier to international investors than they actually are.
