Energy market

Parametric insurance is emerging as a key solution to the financial challenges facing Africa’s energy sector. By increasing investment certainty and facilitating financial flows, this approach offers comprehensive protection against a multitude of risks. This is a major opportunity to accelerate the development of renewable energies in Africa by securing investments and ensuring the financial stability that is essential for players in the energy sector.

In Sub-Saharan Africa, there are huge opportunities for countries to trade renewable energy, enabled by interconnected power systems. While importing energy from another country or region might be seen as a risk (as being experienced in Europe, where countries are trying to reduce their dependence on Russia’s oil and gas following Russia’s invasion of Ukraine) – trading electricity generated from renewable energy resources across borders can actually help to meet energy demands, bolster security of supply, and assist the transition to clean energy. Simon Trace, programme director of the Energy and Economic Growth (EEG) research programme, funded by the UK’s Foreign, Commonwealth & Development Office (FCDO), explains more.