UNLOCKING OPPORTUNITIES IN RENEWABLE ENERGY TECHNOLOGIES IN AFRICA: THE ROLE OF DEVELOPMENT FINANCIAL INSTITUTIONS

Oluwaseun Viyon Ojo

INTRODUCTION

Climate change and global warming are undeniably undermining global development with developing or emerging economies being the worse hit in this unfortunate development. In recent times, it has become necessary to adopt effective adaptation measures that mitigate the impact of climate change on the social, political, and economic environment. A global shift to low-carbon energy technologies through the gradual integration of renewable energy resources in the global energy mix has been generally proposed. Whilst legal and regulatory initiatives are indeed crucial in driving this global energy transition, it is equally imperative that the necessary capital is unlocked to finance the construction, development, and expansion of renewable energy projects in Africa. This paper focused on examining the impact of renewable energy technologies on climate change mitigation, and analysed the role of Development Financial Institutions (DFIs) in unlocking the vast opportunities associated with renewable energy technologies or projects, with a view to driving the clean energy transition in Africa.

Keywords: Climate Change, Global Warming, Renewable Energy Technologies, Development Financial Institutions, Financing.

DOI: https://dx.doi.org/10.4314/jsdlp.v12i1.5

Oluwaseun Viyon Ojo,LLB(Hons). BL, Associate, Duale, Ovia and Alex-Adedipe Law Firm, and is experienced in all aspects of corporate finance, project finance, project development and mergers and acquisitions in the power, oil and gas and telecommunications, media and technology sector. I am grateful to the reviewers for their comments and revisions on this article and I fully accept responsibility for all errors and mistake in this paper. The author can be contacted atojoviyon2010@yahoo.com orojoviyon2010@gmail.com. (Received 10 February 2021; final version received 30 May 2021

“HUMANIZING” INVESTMENTS IN THE EXTRACTIVE INDUSTRIES IN AFRICA THROUGH THE IFC’S SUSTAINABILITY POLICIES

Chairman Okoloise

INTRODUCTION

International financial institutions face enormous challenges in Emerging Markets and Developing Economies (EMDEs). They finance infrastructure projects, manage vast investment portfolios, offer advisory services, and contribute to economic development in EMDEs. In the process, they are exposed to huge risks and face reputational damage if they act recklessly or have little or no regard for their projects’ adverse impacts on third parties. In the context of natural resource exploitation in Africa, the weak governance of environmental and social risks often results in devastating consequences for communities proximate to investment projects. Promises of infrastructure and social services, job opportunities and economic boom have only often delivered land grabs, forced displacement, cultural infringements, environmental pollution, conflicts, health disasters, misery and sometimes deaths. As calls for greater corporate scrutiny increase, investment project facilitators in the extractive industries like the International Finance Corporation (IFC) must respond appropriately. To preserve its reputation and long-term market access, the IFC needs to apply a higher degree of due diligence and sustainable business conduct that proactively treat risks and limit its exposure. With the rising number of complaints against IFC policy compliance, including projects tainted by scandals and the debarment of companies from accessing international finance, this article demonstrates that merely promoting sustainable investment policies on paper is inadequate. Using a human rights-centred approach to development project financing, the article critically assesses the extent to which the implementation of the IFC’s sustainability framework can practicably protect resource-rich communities, safeguard human rights and ensure sustainable development outcomes in Africa.

Keywords: Extractive Industries, Human rights, Project Financing, IFC, Compliance, Sustainable Development.

DOI: https://dx.doi.org/10.4314/jsdlp.v11i2.6

DAAD (German Academic Exchange) Doctor of Laws Candidate, Centre for Human Rights, University of Pretoria, South Africa. LLB (Ambrose Alli), BL (Nigeria), LLM (Pretoria), Dip (Åbo Akademi); Dip (Copenhagen). Email: chairmanokoloise@yahoo.com