Investor insights: Lessons from renewable energy in fragile and conflict-affected markets
Investing in fragile and conflict-affected settings (FCAS) presents unique opportunities for investors to drive financial returns and social impact. FCAS markets with rising, unmet demand for renewable energy urgently need sustainable projects and solutions. They can play a transformative role by contributing to local skills building, generating tax revenue for governments to deliver essential services and addressing inequalities.
Yet, FCAS markets face significant investment barriers. Investors often perceive business ventures in FCAS markets as too complex and expensive. They may require deep country-specific knowledge and specialist innovative approaches. Some investors are exploring ways to build business in FCAS, but these efforts have largely remained ad hoc, requiring substantial effort with high transaction costs.
One solution is peace positive investment. An emerging approach to manage risks and enhance returns for investors in FCAS while improving stability in the local context. This paper from International Alert and PeaceNexus brings together key findings from consultations with investors who are active or interested in working with FCAS markets. The analysis breaks down in detail the challenges providing insight, guidance and actionable solutions that make investing in FCAS achievable, viable and sustainable and simultaneously contributing to long-term peace.
