Investments in green sectors in Africa have experienced significant growth since 2017 despite ongoing volatility and macroeconomic risks.According to a report by Boston Consulting Group The report indicates that only 12% of this funding has been met or committed thus far, posing a significant challenge that must be overcome to ensure a sustainable future for the continent.
As a result, foreign investment in Africa has been flat or slightly declining in the past 10 to 15 years. “Investors can increase Portfolio Value Creation to accelerate growth and derisk green companies, which will ultimately bring down the cost of capital,” said Hill. “Private debt is particularly important for green sectors, which are more infrastructure and working capital intensive.”