What is the Tool?

The Derisking Monitoring Tool addresses a critical data and knowledge gap in global development finance. This interactive, visual resource maps “derisking ecosystems” and “global derisking chains”.

Global Derisking chains: the tool provides granular detail on who owns energy assets, what were the risk sharing arrangements involving foreign and local investors, the state and donor organisations. We separately provide a dataset.

While the empirical focus is on the African continent, the monitor’s scope is global, as derisking developmentalism has a global footprint.

How Does it Work?

The tool is presented as an Interactive Derisking Map on the REDCAJU website. The user experience is designed to be intuitive:

• Anyone entering the website can interact with the map (e.g., hover over or click on a country or sector).
• This interaction reveals detailed information about specific projects and derisking arrangements within that country.
• The tool will be updated dynamically throughout the project’s duration and beyond, with the potential to scale up to include more case studies across the Global South.

What Content Does it Show?

For each case study, the tool is designed to document, in granular detail (conditional on data availability), three key areas:

1. Public Support Mechanisms: It details the full range of public and multilateral subsidies, PPA terms, guarantees, and other support arranged to mobilise private capital for a given project. A PPA is a Power Purchase Agreement where a public company (state-owned electricity utility) commits to purchase power generated by private power producers, at a pre-agreed price. The state effectively derisks demand for these private producers.
2. Private Sector Involvement: It identifies who the private owners of energy assets, who benefit from state backing, through power purchase agreements or other arrangements.
3. Distributional and Fiscal Implications: It maps the consequences of these arrangements, such as the creation of contingent liabilities for the state (e.g., through ‘take or pay’ clauses in energy contracts) and how these impact public finances.