Surging Covid-linked borrowing costs pose threat to Africa’s energy transition

The surge in borrowing costs affecting most African countries in the wake of the economic and fiscal harm that has accompanied the Covid-19 pandemic poses a serious risk to the much-needed recovery in energy investment across the continent, which is set to collapse by 30% in 2020. International Energy Agency (IEA) executive director Dr Fatih Birol, who together with African Union Commission (AUC) infrastructure and energy commissioner Dr Amani Abou-Zeid co-chaired the AUC-IEA Second Ministerial Forum on Tuesday, stressed that a strong investment recovery was urgently required to improve energy access across the continent, which was poised to retreat for the first time in seven years in 2020.