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Green Finance Mechanisms in Developing Countries: Emerging Practice

To counter the devastating impact of COVID-19, calls are growing for countries to ‘build back better’ in an effort to create a more inclusive and sustainable economy that is climate resilient. Africa is facing glaring development and climate risk challenges, but the post-COVID-19 recovery plan offers it an opportunity to revitalise its economy using a green framework. In particular, green finance mechanisms can be employed for the continent’s green recovery. The objective of this policy briefing is to explore best practices in channelling investment towards a green economic recovery to promote inclusive and sustainable investment. Examples of such best practices include investment infrastructure and renewable energy, green/environmental funds and other market-based mechanisms, ensuring stimulus investments focus on green fiscal reform, redirecting existing funding, greening the financial sector and developing green segments.

This article was first published on SAIIA

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Accelerating green energy transition in Africa through regional integration

This brief examines the challenges towards green energy transition in Africa and the prospect of regional integration in fast-tracking this process. Regional integration as being proposed among African countries can sidestep some of the constraints that countries, individually, face in the areas of finance, human capital and technology needed for transition. The study also reflects on the proposed Africa-Europe partnership as an important tool to strengthen this effort with support for regional integration and access to finance and innovations needed for green energy adoption.

Recommendations:

  • National government: Domestic actors have a role to play in aligning their policy and regulatory frameworks with regional requirements. Specific interventions include: support with domestic resources (land, finance, inputs) to encourage regional infrastructure linkages, and appropriate legal measures to encourage local and foreign entries into the green sector.
  • Regional Institutions (African Continental Free Trade Area Secretariat and AU): Gains and burdens from regional approach to energy transition are not expected to be shared equitably. A framework for compensating possible losers will be crucial to ensure broader support for renewable energy transition.
  • EU: A shift in development assistance to encourage a regional approach in transiting to green energy in Africa is required when regional solutions prove more efficient and cost-effective.

This policy briefing has been published as part of a series under the project Partnership for a Green Transition and Energy Access: Strategic priorities for Africa and Europe. The project is a partnership between SAIIA and the Konrad Adenauer Stiftung’s Regional Programme on Energy Security and Climate Change in Sub-Saharan Africa.

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Reopening Schools For Learning

As part of its response to combat COVID-19, the Nigerian government temporarily closed schools. To reopen schools, effective guidelines must be developed and implemented to protect students, staff, parents, and communities against the spread of the virus. In addition, it is imperative to mitigate the effect of COVID-19 closures on learning, and reopening presents a critical opportunity to recover these losses and build a strong foundation for the future of Nigeria’s education system. This policy brief by IDinsight and CSEA, contains: i) guidelines for reopening schools safely, and ii) recommendations for reopening schools to recover learning losses in Nigeria.

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Assessing Digitalization and Data Governance Issues in Africa

The growth of digitalization and digital technology adoption in Africa holds the key to strengthening and diversifying economies across the continent. Although these developments offer potentially life-changing benefits for consumers, businesses and governments, the inherent flaws in the digital market mean these benefits are not guaranteed. As most gains from the digital economy are largely concentrated in the United States and China, the digital divide may widen the gap between the Global North and the Global South. 

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Nigeria Education in Focus (Issue 5)

According to UNESCO, about 35.9 million primary and secondary school learners are currently out-of-school as a result of the school closures. For primary schools, this number totals approximately 25.6 million students, of which about 87 percent (23.5 million) are students enrolled in public schools. The numbers are just as stark for secondary school learners. Of the roughly 10.3 million secondary school students who are out-of-school as a result of the closures, approximately 81 percent (8.4 million) of them are public school students.
In Nigeria, school opportunity is correlated to income level, and public schools differ from private schools in the populations they serve. While private schools serve learners from higher socio-economic backgrounds who are willing and able to pay more to access the better resources offered by private schools, public schools which are usually free, comprise students from lower socio-economic households and low-income areas. In instances where distance learning opportunities are available, uptake will be low from the students in the public school's category, as a result of poor infrastructure such as no electricity, or poor/no internet connectivity, etc.
Opportunities to learn within the homes are also limited, given that a parent’s ability to provide education support to their children will be shaped by their own level of educational attainment, general literacy level, and other commitments. Given the significant relationship between educational attainment and income level, and the correlation between parentals income level and school choice, we can infer that the literacy level of parents in public schools in Nigeria might be lower than their private school counterparts. In instances where the parents are educated, investing the time in training their children during this time might be a luxury.
For Nigeria, the reality is simple - while the school closures are necessary to curtail the spread of the COVID-19 virus until the ban on movement is lifted and schools are reopened, the majority of students will not be learning.

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