Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has urged the international community to scale up the availability of affordable capital to finance infrastructure and development across Africa. Oyedele made this call while addressing the United Nations Dialogue on Solutions to Climate Finance on the margins of the 81st Session of the United Nations General Assembly in New York. He emphasized that Africa's development ambitions, particularly its energy needs, continue to be constrained by high financing costs, currency risks, and limited access to affordable long-term capital.
Oyedele noted that despite Africa's relatively low contribution to global carbon emissions, the continent continues to face significant challenges in mobilizing financing for critical infrastructure. He described these challenges as a "prejudice premium" and "narrative cost." Additionally, Oyedele identified currency risk and what he termed "stereotype tax" as burdens confronting African countries as they seek to raise capital for critical energy and other development assets. These factors, he argued, hinder Africa's ability to achieve its development goals.
The Minister called for a strategic shift in the approach to climate finance, with simpler access to affordable capital for developing countries and financing arrangements that better reflect their development realities. Oyedele also urged the international community to scale up investment in gas and other transition energy sources, particularly in Africa, to expand access to reliable and affordable energy and help address global energy poverty. This, he believes, would support Africa's economic development and help mitigate the impacts of climate change.
Oyedele stressed that Africa's energy transition must take account of the continent's significant energy-access deficit. He noted the need for greater investment to enable countries to meet their development needs while pursuing a practical transition to cleaner energy sources. The Minister emphasized that achieving this goal would require stronger international cooperation and a financing framework that enables developing countries to mobilize the capital required to invest in infrastructure and improve the lives of their people.
For Nigeria, Oyedele said the immediate priority was to structure and implement policies and programmes that would reduce poverty, expand economic opportunities, and accelerate the distribution of shared prosperity. He emphasized that achieving these objectives would require a coordinated approach, involving both domestic and international stakeholders. The Minister's comments highlight the need for a comprehensive approach to addressing Africa's development challenges.
Oyedele's call for affordable capital comes at a time when Africa is facing significant development challenges, including a large infrastructure deficit and limited access to financing. The Minister's comments are likely to resonate with other African countries that face similar challenges. His emphasis on the need for a strategic shift in the approach to climate finance and greater investment in energy infrastructure is also likely to be well-received by development stakeholders.
The international community has a critical role to play in supporting Africa's development ambitions, Oyedele said. He urged stakeholders to work together to address the challenges facing Africa's development, including limited access to affordable capital and high financing costs. By working together, Oyedele believes that it is possible to mobilize the resources needed to support Africa's development and achieve a more sustainable future.
Key points
- Oyedele calls for increased availability of affordable capital to finance infrastructure development across Africa.
- Africa's development ambitions are constrained by high financing costs, currency risks, and limited access to affordable long-term capital.
- Oyedele urges the international community to scale up investment in gas and other transition energy sources to expand access to reliable and affordable energy.
