The Managing Director of FBNBank Ghana, Mr. Victor Yaw Asante, has urged stakeholders of Africa’s energy sector to focus on providing capacity building and finance toward realising Africa’s sustainable energy needs.
Mr. Victor Yaw Asante was representing Dr. Adesola Adeduntan, Managing Director-First Bank of Nigeria, the parent bank of FBNBank Ghana, and was speaking as a panelist during a discussion on the topic ‘Financing Sustainable Energy Transitions in Africa – Pitfalls, Potentials and Paradoxes’ at the Climate Finance for Sustainability Energy Transition in Africa Conference, held at the conference facility of the Institute of Social Statistical and Economic Research (ISSER) at the University of Ghana.
As per the topic, Africa’s widening energy access gap creates a unique opportunity for the region to leapfrog fossil fuel technologies and pursue a climate-friendly, needs-oriented power strategy aligned with the Paris Agreement and low-carbon growth. Through the discussion, panellists helped identify and discuss financing gaps and opportunities to guide stakeholders in accessing, allocating and mobilising climate finance effectively.
During the discussion, Mr. Victor Yaw Asante established that Africa has several energy resources and most of the currently used sources are hydro-carbon based while the water-based ones are not adequately tapped. He also touched on solar and wind as additional options, explaining that very little attention has been paid to these two compared to water. “Solar can deliver 60 percent of our own power energy,” he said.
To ensure that Africa enjoys the best use of its multiple energy resources, Mr. Asante stressed the need for investment in human capital development with a strong element of capacity building as well as finance and technological advancement. He was of the view this should bring about the much-needed transition using sustainable energy, and that organisations should be able to strengthen human capital across the African continent as well as strengthen institutions across the board.
According to the Managing Director of FBNBank Ghana: “Capacity building in technology would be ideal if we want to transition into the sustainable energy that we want. Capacity requires two things; capital and skills. Organisations should therefore be able to strengthen human capital across the African continent as well as strengthen institutions across the board. In terms of financing, the amount of investment required is not something that can easily be acquired from the continent at the moment. In Nigeria, they are committed to achieving net-zero gas by 2060 at the cost of about US$2trillion, and Ghana plans to also achieve same by 2070. There is a need for some interventions from some multinational banks, development banks and other financial organisations to assist in financing to achieve our goal.”
Based on FirstBank’s experience and capabilities in advancing sustainable finance – in this case financial inclusion in Africa, the bank is committed to sustainable energy transition financing that is only through the deployment of climate financing mechanisms (loan products and investment offerings) that will advance the clean energy market and equitable economic development.
First Bank looks internally to infrastructure and provides bespoke solutions with in-depth knowledge to the peculiarity of infrastructure deficits in Nigeria and Africa at large. Aside from financing, the bank has over the years provided advisory services and continually collaborated with private and institutional investors in reviewing their respective capital plans – turning public and private strategies into defined projects and helping to guide projects from concept to early stage feasibility work, while delivering on commercial structuring and financial modelling.
Other members of the topic’s panel include Ian Mashingaidze, Programme Director for Africa Capacity Building Foundation (ACBF); Seun Akindele, Head of Corporate Communications-Access Bank; and Chidozie Ezike, Head Group ESG and Risk Measurement-United Bank for Africa. The moderator was Professor Kenneth Amaeshi-School of Transnational Governance, European University Institute.
