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How to Drive Africa’s Energy Transition (By Anibor Kragha)

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African

The Continent’s Energy Transition Must Be Locally Led

ABIDJAN, Ivory Coast, September 4, 2025/APO Group/ —By Anibor Kragha, Executive Secretary, African Refiners & Distributors Association (ARDA) (https://ARDA.Africa/).

External expectations have framed Africa’s role in the energy transition for years. Despite facing different realities, such as limited infrastructure, restricted access to capital, and less influence in global energy policy, it has been assumed that Africa will follow the same decarbonisation path as developed economies.

This way of thinking is misaligned with today’s realities. Africa’s priorities—improving access, promoting industrial growth, and building resilience—must be reflected in its energy strategy. The continent is actively involved in the global shift. It is, however, doing this on its own terms.

At the African Refiners & Distributors Association (ARDA), we believe the continent’s energy transition must be designed in Africa, for Africa, balancing three urgent imperatives: expanding energy access, driving industrial growth, and prioritising energy security for the continent That means shaping policies, financing mechanisms, and partnerships that work for Africa rather than copying models that do not.

Across Africa, governments and private sector players are investing in diversified energy portfolios that reflect both local needs and global sustainability goals. In Angola, construction is progressing on a 35MW solar project, part of a broader pipeline exceeding 3GW of planned solar, wind, and hydropower developments.

In Uganda, the 250MW Bujagali hydropower plant continues to play a vital role in stabilising the national electricity supply. Meanwhile, South Africa is advancing a 316MW solar PV installation paired with 500MWh of battery storage.

These projects indicate a significant move toward energy independence and long-term resilience. The continent is not only catching up with global energy trends but also accelerating them, with locally-led solutions and designed with long-lasting impact.

Bold vision, however, is not enough. To scale Africa’s energy transition, there will need to be structural follow-through. Three crucial factors will determine if the continent can move from prospective projects to transformative change: sustainable finance, regional integration, and investor-friendly policy frameworks.

The investments we make today must be forward-thinking, aimed at speeding up the transition to a diverse, low-emission energy economy that promotes inclusive growth and progress

1. Sustainable Finance

The African Development Bank estimates that Africa’s energy transition will cost around $100 billion per year between 2020 and 2040.

Current capital flows fall significantly short, and the financing that does exist often comes with higher risk premiums, shorter loan terms and limited flexibility.

ARDA is championing innovative financing models that blend public and private capital, lower investment risks, and align global climate finance with Africa’s development priorities. To attract serious investment, Africa needs to utilise smart financing strategies that utilise public and private money, reduce risks for investors, and encourage global institutions to support energy projects. This approach can minimise risks for investors and encourage institutions to back energy projects. It’s also vital to prioritise initiatives that merge renewable energy with storage systems. Not only do these projects help cut down emissions, but they also ensure a steady electricity supply, support various industries, and ultimately, strengthen the economy.

2. Regional Integration

Many African countries remain reliant on fragmented, underpowered national grids that struggle to attract large-scale investment. Regional integration is essential, and it depends on harmonised regulations, cross-border infrastructure, and shared power resources. Initiatives like the African Single Electricity Market (AfSEM) and the African Continental Free Trade Area (AfCFTA) lay the groundwork for collaboration. What we need now is political unity and focused investment to transform these initiatives into platforms for energy security and economic growth.

3. Policy Frameworks

Africa is catching the eye of global investors, but what it needs is predictability. Governments must consider implementing policies that simplify the process of permitting, financing, and running energy projects. Whether it’s through feed-in tariffs, tax incentives, or local regulations, the aim remains the same: to cut down on uncertainty, reduce costs and attract long-term investments. ARDA works with policymakers to design frameworks that enable private participation, ensuring that energy projects are not only bankable but also deliver lasting local value.

The countries that will lead the continent’s energy shift are those that provide a stable and transparent environment, allowing both public and private players to collaborate with confidence. Most importantly, this energy transition must create local value. It should focus on building skills, transferring technology, and sparking new industries, from battery production to green hydrogen. Every megawatt generated should be viewed not just as electricity produced, but as a job created, a business empowered, and a supply chain bolstered.

Africa’s energy transition is about making smart choices. Cleaner fuels like natural gas will continue to play a vital role in the short to medium term, particularly in replacing high-emission diesel and fuel oil in power generation and transport. Mozambique, through its significant gas reserves and ongoing LNG initiatives, plays an increasingly important role in shaping Africa’s transitional energy future. These transition fuels are essential to maintaining reliability while building capacity for a low-carbon future.

The investments we make today must be forward-thinking, aimed at speeding up the transition to a diverse, low-emission energy economy that promotes inclusive growth and progress. The global community stands to gain immensely from the continent’s transition. The real question isn’t whether Africa will make this shift; it’s about how quickly and decisively the world is ready to back that journey.

Distributed by APO Group on behalf of African Refiners & Distributors Association (ARDA).

Business

SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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