Our conversation with Africa Impact Advisory Practice

Our first discussion for the Green Grids Investment Dialogue was with Kuziva Huni and her team at the Africa Impact Advisory Practice. We are grateful for their time to discuss what is needed to strengthen the framework for investment in green energy infrastructure across Africa. Our three key takeaways from the discussion are as follows:

• The challenge of financing grids is urgent and a significant opportunity for investors. Grids, on the other hand, provide opportunity to invest in a low-competition market and in long-term revenue-generating assets with predictable cash flows over long investment horizons.

• The time lag between the development of power generation assets and transmission grids necessitates transmission as a critical precursor for successful generation. This is also true for overall market dynamism given that modern, efficient, and flexible grids enable better energy planning, regional trade and sophisticated energy systems.

• It is possible that a lack of incentives have meant that the necessary levels of innovation by financiers, to unlock climate financing, are yet to be met.

As we progress with our consultation with investors, as well as gathering the perspectives of regulators and our networks of legislators ahead of the Dialogue on 27 November, we will continue to post the key insights and points raised in each discussion. As we do, the illustrative statement below will be revised with a final iteration to be published during COP28.