Renewable energy may be the way for Africa to go

LUSAKA – GERMAN investors have expressed interest to invest in the ZAMBIAN energy sector, amid reports saying global financiers have set up schemes to help the AFRICAN continent.

The ZAMBIAN Ambassador to GERMANY, ANTHONY MUKWITA, says the business people have recognised the efforts the country is making to improve power supplies.

He says the EDGAR LUNGU Government decision to remove energy subsidies has made the sector attractive for private investment and expansion.

Ambassador MUKWITA says the situation is the reason the SADC country has been invited to attend the forthcoming 12TH GERMAN-AFRICAN Energy Forum in GERMANY.

He says the massive planned gathering will attract 400 national and international delegates as well as business associations in the energy sector.

Meanwhile, an earlier report by RENEWABLES NOW says the EUROPEAN Investment Bank, GERMAN Insurer MUNICH RE, and the AFRICAN Trade Insurance Agency have a new initiative.

It says the THREE organisations have launched a joint political risk reinsurance facility targeting to support the clean energy sector in AFRICA.

The AFRICA Energy Guarantee Facility aims to attract about ONE-POINT-FOUR-BILLION USD dollars of private investments in the renewable energy, efficiency, and access in 25 Sub-SAHARAN AFRICAN countries.

It will offer long-term insurance against non-payment under power purchase deals; expropriation and breach of contracts; currency inconvertibility; war; civil unrest, and arbitration award default.

Authorities expect the initiative to have a major impact on business, since firms are usually cautious to launch fresh energy projects unless assured of long-term protection for their money against changing political environments.

MUNICH RE Chief Executive Officer JOACHIM WENNING says the AFRICA Energy Guarantee Facility will remove a major obstacle for renewable energy investments on the AFRICAN Continent./Sabanews/cam

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