Africa Energy Review overview
The global energy landscape has shifted dramatically as countries are trying to find the balance between energy security and a just energy transition to a more sustainable future.
As we navigate these global challenges, the evolving energy landscape, characterised by geopolitical shifts and technological advancements, presents both challenges and opportunities for Africa. Stakeholders in the energy sector have highlighted the need for investment in infrastructure and technology to enhance grid efficiency, energy storage, and resilience—therefore collaboration between public-private partnerships, and regulatory reforms have become more crucial.
Key takeaways from the report highlight that:
- While the world will need fossil fuels during the energy transition, Africa needs to maximise its value from fossil fuels. The recent gas and oil discoveries in Namibia and Mozambique are poised to boost economic growth by creating jobs, enhancing energy security, and attracting foreign investment.
- Africa is making significant strides in renewable energy, with countries like Kenya, Egypt, and Morocco leading in solar, wind, and geothermal projects. The continent’s vast natural resources present immense potential for renewable energy development, which is crucial for reducing reliance on fossil fuels and promoting sustainable growth.
- International investments and collaborations are pivotal in advancing Africa’s energy infrastructure. Initiatives like the Battery Energy Storage Systems Consortium and the UAE Hydrogen Declaration of Intent highlight the global commitment to supporting Africa’s renewable energy projects, ensuring energy security, and fostering economic development.
- Efforts to improve energy access and electrification are yielding positive results, particularly in East Africa. Countries like Kenya and Ethiopia have significantly increased electricity access through initiatives like mini-grid solar projects and cross-border electricity trade, showing a solid commitment to reducing energy poverty.
The global energy landscape is influenced by geopolitical tensions, such as conflicts in Ukraine and the Middle East, which have reshaped energy security policies and alliances. Africa’s energy strategies are adapting to these changes, with an increased focus on diversifying energy sources and enhancing regional cooperation.
Public-private partnerships are essential for driving energy-sector reforms and infrastructure development. Examples from South Africa and Nigeria show how collaboration between the public and private sectors can enhance energy security, attract investment, and support the transition to a competitive and sustainable energy market.
Natural gas, particularly through LNG projects, is critical as a ‘bridge fuel’ in Africa’s energy transition. Major investments in LNG projects in countries like Mozambique, Nigeria, and Senegal are essential for energy security, economic growth, and job creation. LNG projects can help monetise Africa’s vast gas reserves while supporting the continent’s shift towards renewable energy by providing a reliable, lower-emission energy source.
