Access Bank champions sustainable energy transition in Africa

Access Bank Ghana participated in the Climate Finance for Sustainable Energy Transition in Africa Conference last week, at the University of Ghana, Legon.

The conference brought together seasoned professionals from across the sub-region, who shared insights into pitfalls, potentials, and paradoxes of financing sustainable energy transitions in Africa.

Speaking on behalf of the Managing Director of Access Bank Ghana, Olumide Olatunji, during a panel discussion, Oluwaseun David- Akindele, Head of Corporate Communications at Access Bank Ghana said renewable energy in Africa holds immense potential for revolutionizing the continent's energy landscape, driving economic growth, and combating climate change, however, African countries face significant obstacles in attracting adequate financing for renewable energy projects.

He said ‘limited access to capital is a significant challenge African countries face in this pursuit. He noted that factors such as the presence of political and economic instability across the continent create an environment of higher perceived risks, deterring potential investors.

He also noted that currency volatility and exchange rate risks, inconsistent or inadequate policies and regulations related to renewable energy among other factors pose additional risks for investors and further contribute to limited access to capital.

Oluwaseun touched on some ways to address these problems. ‘Bridging the funding gap for sustainable energy projects in Africa requires a thoughtful exploration of various financial instruments and mechanisms. These tools serve to attract investments and channel capital towards the development of renewable energy initiatives on the continent, ultimately fostering a transition towards a greener and more sustainable future.

One avenue to mobilize funds, he noted, is through the issuance of green bonds, which offer a purposeful investment opportunity for individuals and institutions seeking to support renewable energy projects in Africa.

Oluwaseun said, Access Bank Plc issued the first Climate Bonds Initiative (CBI)-certified corporate green bond in Africa in 2019, raising US$41 million from this issuance. Also, in 2022, the bank successfully closed its second green bond issuance, raising $50 million.

The step-up puttable green bond was issued under the Access Bank $1.5 billion Global Medium-Term Note Programme and is listed on the main market of the London Stock Exchange.

In addition, Oluwaseun alluded to the importance of collaboration between governments, financial institutions, and development partners for effective mobilization and allocation of climate finance.

He revealed that in 2022, Access Bank Plc partnered with the Lagos Business School (LBS) to fund the school’s 350KW and 152KWh hybrid power solutions project through its Sustainable Use of Natural Resources and Energy Finance (SUNREF) facility.

SUNREF is a green energy facility availed to Access Bank by the Agence Française de Développement (AFD) to support Nigeria’s journey toward carbon emissions reduction and a cleaner environment.

In addition, the Lake Turkana Wind Power project in Kenya, the M-Kopa Solar project in East Africa, South Africa's Renewable Energy Independent Power Producer Procurement Program (REIPPPP), the African Development Bank's Desert to Power Initiative, the Bui Solar-Hydro Hybrid Plant in Ghana and the Azura-Edo Independent Power Plant in Nigeria are all examples of Access Bank’s commitment to sustainable renewable energy.

Access Bank remains committed to financing renewable energy in Africa
The bank presently operates through more than 700 branches across three continents and service outlets in 18 countries, including the UAE, UK, and France, and three representative offices in China, India, and Lebanon.



Oluwaseun David-Akindele (right), Head Corporate Communications - Access Bank Ghana; Ian Mashingaidze, Programme Director, ACBF (2nd right); Prof. Kenneth Amaeshi, Professor, School of Transnational Governance – EUI (middle); Victor Yaw Asante, CEO – FBN Bank Ghana (2nd left) and Chidozie Ezike, Head, Group ESG & Risk Management – UBA (far left) at the conference.