Harnessing Renewables in Sub-Saharan Africa: Barriers, Reforms, and Economic Prospects

Oct. 9, 2024 - International Monetary Fund

SummarySub-Saharan Africa needs to significantly accelerate its electricity generation. A mix of domestic and external financing can increase both renewable electricity generation and GDP.

Policies can help catalyze climate finance. An ambitious package of governance, business regulations, and external sector reforms is associated with a 20 percent increase in climate finance flows and a 7 percent increase in electricity generation over five years.

In addition, implementing climate policies is linked to increases in green foreign direct investment announcements and green electricity production...