Dairy Innovation Fund

Dairy Innovation Fund: Application Guideline and Form
Wednesday, 30 July 2014
 Recognizing the great vision, determination and encouraging progress of ESAI; the Irish Aid (through its Private Sector Innovation Fund) has commenced collaboration with PCI and USAID in this... Read more...
Huajian Group to Build its Own Industry Zone
Tuesday, 29 July 2014
 The Chinese shoe company, which has already heavily invested in Ethiopia at the Eastern Industrial Zone in Dukem town of the Special Zone of the Oromia Regional State, Huajian Group, is now set to... Read more...

Recent News

 Combined revenues from the telecommunications sectors in Ethiopia and the...
 Ethiopia is in the process of formulating its Sustainable Tourism Master...
 Bank to Increase Power Africa Program Funding to $5 billion from $2...
 The 4th Ethio-US Business Forum has been held in Houston, Texas. An...
 The Africa Hotel Investment Forum recently announced it was moving its...
 A forum intended to assess the implementation of Africa’s cross-border...

Business Opportunities

 This profile envisages the establishment of a plant for the production of 2,500 pieces...
 This profile envisages the establishment of a plant for the production of folding gates...
 This profile envisages the establishment of a plant for the production of spark plugs...

Africa Must Calm Investor Unease Over Backing Costly Low Carbon Projects (AfDB)

User Rating: / 0


Everyone agrees green growth is a good thing. So why isn't the whole world speeding along the low carbon route? Why are there so many red lights along the way?

The reason is that many low carbon projects are costly, beyond the reach of many if not most African governments. The private sector is not closing the gap. The reason is that investors are worried whether their money is safe.

This was one of the topics discussed in a session at the climate change energy conference, or COP 17, in Durban. The consensus was that governments must enable safe investment environments for low carbon growth projects. African leaders are committed to pursuing a green growth plan, but can only do so with an injection of cash. But if investors are scared of losing their money, that cash will not arrive.

"Energy is the engine of economic growth and development", said Salvador Namburete, Mozambique's minister of energy. "Although Africa has a sizeable scope for renewable energy, and the issue of clean sustainable energy is top of our agenda, Africa has limited financial resources to develop renewable energy."

He called on finance bodies to fund such projects, and on governments to attract private investors.

"Climate investment must be improved so perceived risks can be minimized. Political leaders and institutions must develop enabling environments to facilitate private investment", he stressed.

Norway's junior minister in the Ministry of Foreign Affairs, Arvinn Gadgil, agreed climate investment must be improved. "Private business needs an enabling environment that's predictable and transparent. It must include stakeholders from government", he said.

Gadgil warned that misconceptions about Africa still exist, and Africa needs to eradicate this prejudice to attract private investors.

Offering advice based on Norway's experience, he told African leaders to take ownership of projects. "In Norway, after 50 years, all private plants fall into the hands of the state." He suggested countries slap carbon rich industries with high taxes. "Norway taxes the oil industry at 79 percent. It worked for us."

Ethiopia's Gosage Mengiste said they are committed to turning the country into a low carbon emitter by 2030. "We have an ambitious green growth agenda, and welcome investment", he said. "We see green growth as a necessity and an opportunity."

Speaking for the African Development Bank (AfDB), where she is Director of Energy, Environment and Climate Change, Héla Cheikhrouhou, said: "As a bank, we intervene with a wider range of instruments and work to identify opportunities and solve problems in private-public partnerships."

She cited the example of Morocco, which wants its energy use to be 42 percent renewable by 2020. "Public investment will enable infrastructure. Private investment will come in for the actual plant, and the bank comes in as an enabler providing loans," said Cheikhrouhou.

She said the AfDB had tailored tools to complement medium-scale renewables. "Rwanda is trying to attract small and medium-sized enterprises [to help it to develop]. The AfDB will help to fill the gap and to find resources," she said.

Following up on Mengiste's statement, Yacoob Mulugetta added, "Low carbon offers an opportunity to transform climate challenges into development opportunities."

He said that in the pursuit of low carbon growth, technology transfer is critical. "There's a need for the right mix of policies. Technology that fuels development goals must be accessed." He urged the mobilization of citizen participation.

Dr Felix Dayo, president of Triple E Systems, said myths surrounding low carbon growth no longer exist. "Five years ago, low carbon was met with myths. Everybody said Africa could not afford it. Technological innovation means costs are decreasing, and now we see there are ample opportunities for Africa to tap into."

He laid out a policy plan which he sees as a guarantee for success. "We must develop a low carbon future that's related to stakeholders, develop a reference energy scenario with alternative plans, recognize the importance of comparing scenarios, develop a credible and practical low carbon scenario, have proper and comprehensive resources and create good plans for implementable projects."


← ← Back to home page...


Top Story

The 9th Ethiopian Diaspora Business Forum to be held on August 2-3, in Washington DC
Thursday, 17 July 2014
  The 9th Ethiopian Diaspora Business Forum will be held on August 2-3, 2014 at The George Washington University and Grand Hyatt Washington, respectively. This year marks the 9th year since The... Read more...

Take the Survey!

Fundraising for the Establishment of a Nutrition Company
Friday, 02 May 2014
  Please take a few minutes of your time to fill in the short survey provided through the link below and assist in the establishment of an innovative Nutrition Company and show your support for... Read more...

Upcoming Events

No events