Africa’s push for stronger economic growth and better infrastructure is being held back by expensive financing, currency risks and limited access to affordable long-term capital, according to Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the Economy. Oyedele made the remarks during a United Nations dialogue on climate finance held on the sidelines of the 81st session of the United Nations General Assembly in New York.

Oyedele said the financing challenge is particularly severe in Africa’s energy sector, where countries need substantial investment to close infrastructure gaps and provide reliable and affordable power. He argued that despite Africa’s relatively low contribution to global carbon emissions, African countries often face additional costs when trying to attract international capital. He described these pressures as a “prejudice premium” and “narrative cost” that make financing development projects more difficult.

The minister also pointed to currency risks and what he called a “stereotype tax” as further obstacles facing African economies. According to him, these challenges can increase the cost of raising capital for major infrastructure and energy projects, making it harder for countries to secure the long-term funding needed for sustainable development. He called for a shift in the global approach to climate finance, including simpler access to affordable capital and financing structures that better reflect the economic realities of developing countries.

Oyedele also called for increased investment in gas and other transition energy sources across Africa. He said such investment could help address the continent’s energy-access deficit while supporting a practical transition towards cleaner energy. He added that stronger investment in Africa’s energy sector could diversify global energy supplies and reduce concentration risks, particularly amid disruptions affecting the Gulf region.

For Nigeria, Oyedele said the immediate focus should be on policies and programmes that reduce poverty, create more economic opportunities and accelerate the distribution of shared prosperity. He stressed that achieving these goals would require stronger international cooperation and a financing framework that allows developing countries to mobilise the capital needed for infrastructure and economic development. The comments highlight the continuing importance of affordable financing, currency stability and energy investment to Africa’s broader economic ambitions.

source: The cable