Power up: insurance-backed investment to fuel sustainable growth in Africa
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Insurance will be a key facilitator for investments in renewable energy technologies to meet Africa's power needs and kick-start growth after this year's recession.
Key takeaways:
- Renewable energy sources are cost-competitive with fossil fuels.
- This will drive development of the renewable energy technologies (RETs) sector in Africa.
- Investment in RETs will help close the existing power gap and underpin sustainable economic growth on the continent.
- With a regulatory environment that encourages private-sector involvement, we estimate total investments in RETs in Africa of USD 180-400 billion up to 2030.
- The RET sector represents a USD 6-8 billion premium opportunity for insurers over the same time span, or USD 500-700 million per year.
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