Oyedele Seeks Affordable Long-Term Capital to Address Africa’s Infrastructure Gap
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has called on the international community to increase access to affordable and long-term financing for infrastructure development across Africa.
Oyedele made the call while addressing the United Nations Dialogue on Solutions to Climate Finance on the margins of the 81st Session of the United Nations General Assembly in New York.
The Minister said Africa’s development ambitions, particularly in the energy sector, remained constrained by high financing costs, currency risks and limited access to affordable long-term capital.
He noted that despite Africa’s relatively low contribution to global carbon emissions, countries on the continent continued to face additional costs in accessing international financing for critical infrastructure.
Oyedele described these challenges as a “prejudice premium” and “narrative cost”, while also identifying currency risks and what he termed “stereotype tax” as further burdens confronting African countries seeking capital for energy and other development projects.
He therefore called for a strategic shift in the global approach to climate finance, advocating simpler access to affordable capital for developing countries and financing arrangements that take into account their unique development circumstances.
The Minister also urged increased investment in gas and other transition energy sources, particularly in Africa, to expand access to reliable and affordable energy and help address global energy poverty.
According to him, increased investment in Africa’s energy sector could also contribute to diversifying global energy supplies and reducing concentration risks, particularly amid disruptions affecting the Gulf region.
Oyedele stressed that Africa’s energy transition must reflect the continent’s significant energy-access deficit, noting that greater investment would be required to enable African countries to meet their development needs while progressively transitioning to cleaner energy sources.
Speaking on Nigeria’s priorities, the Minister said the immediate focus should be on designing and implementing policies and programmes that would reduce poverty, expand economic opportunities and accelerate the distribution of shared prosperity.
He added that achieving these objectives would require stronger international cooperation and a financing framework that enables developing countries to mobilise the capital needed to invest in infrastructure and improve the living conditions of their citizens.
