In African countries, there’s a gap between the financing available for renewable energy and the projects its meant to reach. Funds are not reaching the right places and even as more funding is announced for clean energy, many projects don’t get off the ground because the financial tools available don’t fit their needs.
For example, credit rating rules designed decades ago place a limit on the amount of money a solar project can borrow. Another example is when loans have to be paid back within five years instead of over the 30 year life span of the project.
So it’s not only that emerging market and developing economies need more financing (they do); it’s also that funding isn’t reaching the places and projects where it would make the most difference.
