Kevin Kariuki on AfDB's role in Africa's energy transition

The push towards sustainable renewable energy investments received a significant boost at the ongoing COP27 summit, with leaders committing to uphold the climate action agenda. CNBC Africa's Jill De Villiers engaged in a discussion with Kevin Kariuki, Vice President of the Africa Development Bank (AfDB), shedding light on the pivotal role the bank plays in Africa's energy transition. Kariuki highlighted the tremendous progress made in shifting the energy landscape towards renewables, emphasizing the AfDB's pivotal contribution over the years. Kariuki underscored the substantial growth in renewable energy witnessed in Africa, citing an increase from 9% to 86% between 2001 and 2010. This surge, as Kariuki explained, was bolstered by the bank's initiatives and projects like the Noor Ouarzazate Solar Power Complex in Morocco, which stands as the world's largest concentrated solar power plant. Additionally, the bank's endeavors included the development of the ElectroCarvão Verde Project in Kenya, marking a strategic move towards sustainable energy sources. Furthermore, Kariuki emphasized the AfDB's firm stance against coal, with a formalized policy banning coal power projects from the bank's agenda since 2021. This policy shift reflects the bank's commitment to prioritizing renewable energy sources to support Africa's energy transition. With an abundance of untapped renewable energy potential on the continent, Kariuki highlighted the need to harness these resources fully to meet the region's escalating energy demands. One of the significant challenges hindering the full utilization of Africa's renewable energy potential, as pointed out by Kariuki, is the scarcity of bankable projects. To address this issue, the AfDB launched the Alliance for Green Infrastructure in Africa during the COP27 summit. This initiative aims to cultivate a robust pipeline of bankable projects that can attract financial support from various partners, including IBRD, AIB, AFD, the Rockefeller Foundation, and other stakeholders. Kariuki emphasized the pressing energy needs in Africa, with a substantial population lacking access to clean cooking and electricity. He stressed the urgency of doubling Africa's energy output by 2040 to achieve sustainable development goals. The AfDB's focus on developing and mobilizing funds through the Climate Action Window reinforces its commitment to supporting adaptation and mitigation efforts in African countries facing the brunt of climate change impacts. The introduction of the Climate Action Window seeks to address the funding gap for climate initiatives in Africa, especially in the most vulnerable ADF countries. With an ambitious goal of mobilizing $4 to $13 billion, the Climate Action Window aims to allocate resources for adaptation, mitigation, and technical assistance. This initiative underscores the AfDB's proactive approach towards assisting African nations in adapting to the irreversible effects of climate change, as Kariuki emphasized the critical need for affordable and efficient climate finance in the region.