Jesús Jiménez talks about investments in Africa to ABC newspaper: ´The barrier for Spanish companies is to compete in financial instruments´.

20/12/2023

The landing of Spanish companies in West Africa to invest in renewable energy faces difficulties, including lack of financing and regulatory risks. Reports by PJSC-Masdar and PwC Middle East highlight the potential of 2000 GW of untapped renewable energy in the region.

Jesús Jiménez, CEO of FOCE, Coordinator of the Africa Working Group and Board Member of the Exporters Club emphasized to ABC newspaper that Spanish banks have little appetite for technical financial risk in Africa compared to our direct competitors in Europe, such as the Belgians, French, British and Danish....

He also mentioned that "The statistical data available, even the official ones, lack reliability. The existing information is outdated and focuses on bilateral initiatives". Despite all this, there are currently multiple opportunities for national companies in green hydrogen, because there is also a lot of land available for it.

Although Africa has significant potential, just 2% of global investment in renewable energy over the past two decades has been directed to the region, according to the International Renewable Energy Agency. Although countries such as Morocco, South Africa and Ghana are recognized as strategic destinations, challenges remain, such as unreliable statistical data and the need to secure financing.

Opportunities for Spanish companies are seen in green hydrogen, with interest in generation projects. However, the reluctance of Spanish banks to take risks in Africa and financial competition are highlighted.

Despite the difficulties, there is a growing interest of Spanish companies in the region, especially in the context of the expected increase in energy demand in Africa.