Collegium Helveticum
Switzerland
fellow
Churchill Agutu
Discipline(s)
Economy and finance
Theme(s)
Energy & Renewable Resources
Environment, Sustainability & Biodiversity
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Research Project
Foreign Exchange Risk The Silent Obstacle to Africa's Energy Revolution
This project takes a multidisciplinary approach to understanding the persistent challenges of electrification in Africa by addressing two major paradigm shifts. First, it examines the growing prominence of foreign exchange (FX) risk—currency fluctuations that significantly reduce investor revenues and create barriers to renewable energy investment. Second, it shifts the focus from electricity access alone to energy service access, emphasizing the value of what electricity enables (such as lighting, refrigeration, or connectivity) rather than solely its source. This perspective opens new opportunities for scaling off-grid energy technologies tailored to local needs.
One of the major barriers to electrification in sub-Saharan Africa is limited investment, driven in large part by high financing costs. A key contributor to this is FX risk, which arises from the mismatch between hard currency investments and local currency revenues. Despite its impact, FX risk remains largely unaddressed—due to underdeveloped capital markets, the high cost of hedging, and a lack of local financial expertise.
This project will develop a technology-focused analysis of cost-effective strategies to mitigate FX risk for energy service investments in Africa. By identifying practical solutions to reduce investment risk, it aims to unlock significant private capital and contribute to more sustainable, scalable electrification across the continent.
Research Interests:
Churchill Agutu is an energy finance expert whose work focuses on how public financing can help scale low-carbon technologies in low- and middle-income countries. His research lies at the intersection of technology, policy, and finance, with particular attention to mitigating foreign exchange risk—a key factor driving high investment risk perceptions in developing markets. He is especially committed to bridging academic research and policy practice to inform strategies that accelerate the global energy transition.
Churchill earned his PhD from ETH Zurich (CH) in 2023, where he examined how technology, policy, and finance shape electricity access in sub-Saharan Africa. Upon completion of his PhD, he worked as a specialist for derisking renewable energy investment at the United Nations Development Programme (UNDP), where he supported governments across sub-Saharan Africa in designing and identifying public instruments to unlock private capital for renewable energy projects.