Transition to Renewable Energy in the Middle East and North Africa Region: The Imperatives, Benefits, Drivers, Barriers, and the Role of MSMEs

This report is one contribution to a large and rich compendium of seminal research studies conducted by a team of distinguished researchers assembled by the Economic Research Forum (ERF) and supported by a grant from the Canadian International Development Research Centre (IDRC) to undertake this important and unique project on “The Role of MSMEs in Fostering Inclusive and Equitable Sustainable Economic Growth in the Context of the Clean Energy Transition in MENA.”

The study proposes a policy road map to guide the region’s energy transition, with a particular focus on ensuring the active participation of the informal sector, the public sector, the private sector and particularly the MSMEs in this critical and unique transition. This road map outlines some key milestones, policy interventions, stakeholder responsibilities, and concrete measures that sought to provide a clear path for achieving regional and national renewable energy targets. By including the informal economy in this framework, and by emphasizing the targeting of the empowerment of women and the youth of the region, this road map could be relied upon to promote an inclusive and just transition that benefits all segments of society. In a nutshell the road map prioritizes the reduction of regulatory and financial barriers faced by MSMEs, providing targeted support to informal businesses, developing public-private partnerships and cooperative clusters of firms to facilitate the adoption of renewable energy technologies across sectors. It also focused on raising public awareness, improving energy literacy, energy efficiency, training of labor, and building a supportive ecosystem for businesses and community stakeholders to transition to clean energy solutions.