Rethinking a new transition finance paradigm for addressing the climate crisis in Africa

Abstract This policy brief uncovers the investment-ready instruments and policy packages that can unlock the energy transition in Sub-Saharan Africa. These are summarised around three key messages. First, transition finance vehicles in Africa should aim to transform ‘brown’ (polluting) into ‘green’ (renewable) industries. Second, key instruments include green bonds for specific environmental projects, grants/guaranties to support private investments that target access to energy for the poor, and patient capital investments into growth sectors focused on environmental, social, and governance targets. Third, national energy policy should connect innovative market-based solutions (e.g., mini grids) to centralized (e.g., national grid) systems to strengthen governance.