Endogenous innovative financing of renewable energy and inclusive catch-up in Africa: Insights from East Asia
Omolola Amoussou  1, *@  , Ogundiran Soumonni  2@  , Kalu Ojah  2@  
1 : Banque africaine de développement / African Development Bank
2 : University of the Witwatersrand
* : Corresponding author

A cursory analysis of the electricity access and sustainability transitions data in African countries reveals that most will miss their universal clean energy objectives, set for 2030 under the UN's Sustainable Development Goals (SDGs), by a wide margin. Meanwhile, the rapid explosion of mobile telephony in Africa since the new millennium has facilitated the emergence of financial technology solutions that have enhanced socio-economic inclusion. Yet, the long-predicted replication of successful mobile penetration in decentralized energy solutions remains elusive. This divergence is compounded by the substantial infrastructure financing requirements for both energy and digital infrastructure. Our objective in this paper is therefore to investigate the differential role that financing technological innovation, rather than the perennial emphasis on financing infrastructure alone, could play in accelerating the rates of both energy and financial inclusion. The relevant targets not only relate to those agreed upon by UN member states, but their attainment can also be fruitfully informed by the experiences of selected East Asian states, namely, China and South Korea. Theoretically, we employ the lenses of economic catch-up and mission-oriented financing in order to underscore the urgency of achieving given societal outcomes – “inclusive catch-up”. Methodologically, we investigate the financing of various domains of innovative energy infrastructure (renewable) relative to the financing of traditional infrastructure (fossil fuels and large dams) for improving electricity access, enhancing energy production and promoting financial inclusion. We conclude with recommendations for combinations of energy and financial innovation that could yield equitable outcomes within a much more reasonable time horizon.


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