Masdar and PwC Report Shines a Light on West Africa’s Potential

Anticipating COP 28, Abu Dhabi Finance Week witnessed the launch of the groundbreaking report “Accelerating Renewable Energy Investment in West Africa” by Masdar and PwC Middle East. Highlighting the region’s untapped renewable energy capacity of 2,000GW, the report emphasizes the urgent need for reforms to attract private sector investments. With 220 million people lacking access to power, the renewable energy transition becomes a linchpin for ensuring affordable and clean electricity.  

The findings underscore the transformative power of pro-investment policies and renewable technologies in meeting social and economic needs. 

Key Insights: 

  • Renewable Capacity Potential: The report reveals West Africa’s massive untapped renewable capacity of 2,000GW, providing a blueprint for the region’s energy renewal and decarbonization. 
  • Policy Reforms for Transformation: Pro-investment policies, coupled with renewable energy technologies, have the potential to transform the energy sector, meeting urgent social and economic needs. 
  • Sovereign Wealth Funds’ Role: The report highlights the pivotal role sovereign wealth funds can play in driving investments in the region’s renewable energy sector, creating a pathway for economic growth. 
  • Electrification Challenges: Despite vast potential, West Africa grapples with one of the lowest electrification rates, affecting 220 million people. The report stresses the need to address this paradox for unlocking social and economic growth. 

The Path Forward: 

Masdar CEO, Mohamed Jameel Al Ramahi, emphasizes the urgency, stating that rapid climate finance flows are essential to multiply Africa’s renewables capacity 40 times by 2050. The report aims to encourage reforms that make renewable energy projects in West Africa more bankable, reducing the region’s country risk rating. 

Carlos Mendes, Capital Projects Partner at PwC Middle East, highlights the critical role of the report in fostering renewable energy ecosystems in West Africa. It is expected to catalyze policy reforms, making renewable energy projects more feasible and decoupling them from country risk. 

Masdar’s role in advancing renewable energy, with a commitment to fund 10GW of projects by 2030, is showcased. The report cites Senegal as a potential green energy hub, provided regulatory and market reforms are implemented. 

As Africa faces rising energy demand, addressing barriers to clean energy investment becomes imperative. The report charts a course for increased affordability, bridging the energy gap, and contributing to global efforts to limit temperature rises. 

In collaboration with PwC Middle East, Masdar’s commitment to unlocking West Africa’s renewable potential stands as a beacon for sustainable development.