Africa needs cheaper capital to fund infrastructure – Oyedele - Punch Newspapers
File photo: The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said high financing costs and limited access to affordable long-term capital are constraining Africa’s efforts to finance critical infrastructure and meet its development needs. Oyedele also identified currency risks and additional premiums attached to African borrowers as major obstacles to attracting capital into energy and other infrastructure projects across the continent. He spoke at the United Nations Dialogue on Solutions to Climate Finance on the sidelines of the 81st Session of the United Nations General Assembly in New York, according to a statement issued on Wednesday by the Federal Ministry of Finance. The statement read, “He said 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.” He argued that despite Africa’s relatively low contribution to global carbon emissions, countries on the continent continued to bear additional costs when attempting to raise financing for development.See more Punch stories on Google.Add Punch on Google According to the statement, Oyedele described the additional financing burden as a “prejudice premium” and “narrative cost”. He also identified currency risks and what he termed a “stereotype tax” as additional challenges confronting African countries seeking capital for critical energy and other development assets. Oyedele called for a shift in the global approach to climate finance, including simpler access to affordable capital for developing countries and financing arrangements that better reflect their economic and development realities. Argentine president slams UN as ‘useless’ over Falklands dispute NAEC conference seeks solutions to investment challenges N500,000 minimum wage is not outrageous He also urged the international community to increase investment in gas and other transition energy sources in Africa to expand access to reliable and affordable energy. According to him, additional investment in the continent’s energy sector could also diversify global energy supplies and reduce concentration risks, particularly amid disruptions affecting the Gulf region. The minister maintained that Africa’s transition to cleaner energy must take into account the continent’s substantial energy-access deficit. “The Minister stressed that Africa’s energy transition must take account of the continent’s significant energy-access deficit, noting the need for greater investment to enable countries to meet their development needs while pursuing a practical transition to cleaner energy sources,” the statement read. For Nigeria, Oyedele said the government’s immediate priority was to implement policies and programmes aimed at reducing poverty, expanding economic opportunities and accelerating the distribution of shared prosperity. He said achieving those objectives would require stronger international cooperation and a financing system that allowed developing countries to mobilise sufficient capital for infrastructure. The statement added, “He said achieving these objectives would require stronger international cooperation and a financing framework that enables developing countries to mobilise the capital required to invest in infrastructure and improve the lives of their people.” Sami Tunji Sami Tunji is a Senior Business Correspondent at Punch Newspapers with about five years of experience in data-driven reporting. He covers finance, ICT, and broader macroeconomic issues, combining analytical insight with clear storytelling. Sami’s work reflects strong editorial judgment, professional development, and a commitment to accurate and informative business journalism.
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