Africa Energy Forum presents a unique opportunity for African collaboration

In the rural village of Gwanda, Zimbabwe, a mother walks several kilometres each day to find firewood so she can cook for her children. She’s never had access to reliable electricity, and her story is not unique. Across Africa, 600 million people still live without energy access – a fact that affects every aspect of their lives.

The former United Nations Secretary-General, Ban Ki-moon, summarised Africa’s biggest challenge when he said: “Energy is the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive”. Without electricity, communities cannot run clinics, power schools, or create jobs – all of which are fundamental to dignity and development.

That is why I attended the Africa Energy Forum in Cape Town recently, a milestone that marked the first time in the event’s 27-year history that it was hosted in South Africa. This year’s theme, “Africa United”, could not be more fitting.

As the global investment meeting for Africa’s power, energy, infrastructure and industrial sectors, it was attended by stakeholders who hold the key to accelerating energy access - African presidents, ministers, policymakers, continental executives, the World Bank, African Development Bank and DFIs.

With South Africa chairing the G20 this year, the continent must use the momentum of the  Africa Energy Forum (AEF) and the G20 Summit to amplify a cohesive African voice in global energy governance. As geopolitical instability rises, with trade wars and fractured alliances, it’s more urgent than ever to ask: Can Africa present a united energy agenda? And can it do so on its terms?

To seize this opportunity, Africa must first agree on a set of shared energy priorities. These must include scaling up renewable resources like solar, wind and hydro, where the continent has a competitive advantage, while also affirming the sovereign right to include coal, gas and nuclear in the energy mix where needed. This is not a contradiction, but a necessity. Industrialised countries built their economies using all available energy sources. Africa must be afforded the same space to grow.

Some of the critical arguments at this year’s event will be around balancing the need for energy access and economic development with plotting a sustainable energy future that includes an abundance of Africa’s renewable energy resources. Favourable terms for the financing of African energy projects will also be another important topic of debate.

Although there are hundreds of initiatives to ensure the achievement of universal energy access on the continent, more than half the continent still lacks access to modern energy, which is why African energy stakeholders believe that amid the drive for reducing carbon emissions, Africa should have a sovereign right to include coal, gas and nuclear as part of its energy mix in line with how developed nations built their economies.

What will the US role be in Africa’s energy future?

The first Power Africa Summit was launched by former US President Barack Obama in June 2013 as a private sector-led initiative with the ambitious goal of doubling electricity access on the continent.

Through USAID, 12 US government agencies implemented Power Africa activities by providing financing and technical assistance to support the power sector in 40 African countries.

Though different US administrations advised countries on electricity access for years, Power Africa’s approach was different in that it took a demand-driven, transactional approach by reviewing actual transactions between private-sector players like investors, entrepreneurs, and manufacturers, and with governments and then identified obstacles that were preventing transactions from moving forward. A large reason for the success of Power Africa in the past was the power of diplomacy to level the playing field for U.S. investments in the energy sector.

US President Trump and his administration announced that Power Africa would be dismantled, after more than a decade of successful work on the continent. With almost all of Power Africa's programmes listed for termination, the diminishing role of the US in Africa’s energy sector opens opportunities for new alliances and greater intra-African collaboration.

Energy financing must be favourable

The challenge for Africa is that it needs to industrialise and electrify its economy, but at the same time, it needs the finances to do so in a sustainable way. Africa has also been most severely affected by climate change, and so its infrastructure development needs to be climate-resilient. Most African nations don’t need an energy transition, but energy accessibility.

Many African countries are grappling with rising inflation, which has also impacted the amount of developmental finance available to African nations. But America may want to maintain its presence and footprint in Africa’s energy sector, especially as China seeks to play a leading role in the continent’s infrastructure development.

Despite the challenging global environment, Africa needs its member states and voices to unite with a collective vision to fund Africa’s energy revolution with international financing mechanisms that are just.

After all, Africa is responsible for less than 3% of the world’s carbon emissions and home to massive, unlocked energy potential, while also being home to 1.2 billion youth aged between 15 to 24 years that account for 16% of the global population (according to the UN).

Greg Nott is Director Norton Rose Fulbright South Africa Inc