Renewable energy investments and emerging markets: an economic catalyst?

Although the benefits of renewable energy investments are well documented by now, it stands to reason that there are further economic advantages. For emerging markets and communities where economic growth is slow or even plateauing, reconsideration of how energy is sourced and delivered could help to provide a much-needed boost.

Of course, investing in renewable energy is not something to be taken lightly. Preparing for entirely new energy sourcing and provision will take considerable time, effort, planning and financial investment. However, it is here where philanthropists and cause-focused businesspeople can make a genuine difference to the lives of thousands of people, if not more.

In this article, we explore a few different ways that investing in renewable energy could revitalize the communities and markets that need financial support.

New resources equal new jobs

It’s reasonable to expect that with changes to energy provision and the introduction of new tools and resources, there will also be the need for new specialists to help roll out and maintain a sustainability-focused infrastructure.

For example, new jobs created around renewable energy may focus on solar power design and installation, along with long-term maintenance. On a grander scale, there may also be the need to create power plants, dams, wind farms and resource management centers to ensure that communities receive the energy they need.

Creating jobs through renewable energy investment is just one focus of businesspeople such as Rofino Licuco, a real estate developer focusing on sustainable infrastructure in Mozambique. Licuco engages in projects such as wind and solar provision across the country in commercial and residential sectors.

In Mozambique’s case, part of Licuco’s investment work and project management aims to help reduce unemployment rates, which were increasing up to the start of the 2020s. Thankfully, this seems to be moving in a positive direction. 

Could sustainability investments be the key to continuing a downward trend? Certainly – considering that manufacturing, installation, planning and maintenance jobs will all be in high demand.

A stronger, healthier infrastructure

One of the biggest challenges in rolling out renewable energy is that of planning and funding infrastructure changes. Admittedly, remodeling a community’s energy provision around entirely new sources will take time and considerable effort to manage.

However, the benefits of investing in renewable energy for the sake of a new infrastructure are sizable. By diversifying energy supplies at local or national levels, for example, there may be less reliance on sourcing fossil fuels or traditional energy from overseas, therefore strengthening a community’s self-sufficiency and reducing expenditure on imports.

Introducing more choice in energy sources – and that which may prove to be cheaper for consumers – could stimulate small economies further by giving households more money to reinvest elsewhere. One of the best ways to reduce reliance on foreign energy suppliers is to invest in energy generation within a local area or at least within a country of supply.

This will demand considerable upfront investment and employment. However, with the support of renewable energy investors, it is a move that will likely pay dividends in the short term. There are also significant cost savings expected with solar, wind and other renewable sources. This will produce savings that small businesses can use to invest more in their local economies and therefore encourage faster growth.

Environmental stability, health and livelihood boosts

A more stable, less polluted environment has marked health benefits for all. A community that is less choked with carbon emissions and that benefits from fresher, cleaner water supplies stand to help people live healthier lives.

There are also positive financial impacts. Healthier people are less likely to take time off work, and businesses can expect to spend less on healthcare expenses, such as insurance and emergency sick pay. 

Additionally, healthier people are generally more productive, according to studies – meaning that they can focus more on developing their careers, making more money, and generally finding more satisfying and stimulating opportunities.

Greener, cleaner spaces can also help to support more resilient mental health, which again coincides with higher productivity and more fruitful livelihoods.

What’s more, a healthier environment is plain for all to see. Greener spaces, cleaner water and fresher air are all likely to become obvious to local people and tourists, who may choose to visit renewable communities more often, investing more money into the economy.

Invest now for a major payoff later

Pushback against investing in renewable energy and eco opportunities likely stems from the initial costs of setting up and rolling out infrastructure. However, as we’ve discussed, there are clear economic benefits to investing in green measures – it will simply take time for them to pay off.

Considering that research continues to suggest that renewable energy is likely the way forward for healthier, stronger economies and communities, there really is no better time to start thinking about going green – or finding an investor who can help.