Africa's power sector is getting absolutely wrecked by currency mismatches, with big shots at a panel before the Africa Investment Forum saying foreign-currency debt is turning into a nightmare for utilities and governments across the continent. AfDB director Wale Shonibare called out how unsustainable it is to finance projects in hard currency when revenues come through in shaky local money. Gambia's energy minister, Nani Juwara, admitted this mismatch is crushing utilities because tariffs can't keep up with exchange rate swings.
Development financiers are pushing for local-currency solutions and hedging tools to stop the bleeding. TCX Fund is working with the International Finance Corporation and European Commission on a billion-dollar facility with most of it earmarked for Africa. Private sector reps from Husk Power Systems and the International Finance Corporation said governments need clearer rules around decentralized renewable systems if Mission 300 is going to hit its target of connecting 300 million people to electricity by 2030.
Development financiers are pushing for local-currency solutions and hedging tools to stop the bleeding. TCX Fund is working with the International Finance Corporation and European Commission on a billion-dollar facility with most of it earmarked for Africa. Private sector reps from Husk Power Systems and the International Finance Corporation said governments need clearer rules around decentralized renewable systems if Mission 300 is going to hit its target of connecting 300 million people to electricity by 2030.
