Connect with us
Anglostratits

Business

The Future of Africa’s Energy Sector: Balancing Fossil Fuels and Renewables (By NJ Ayuk)

Published

1 year ago

on

Fossil Fuels

Africa accounts for 3.3% of the global power generation, with a total power generation of over 980 terawatt hours

JOHANNESBURG, South Africa, February 26, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org).

There’s a promising future for African renewables as the continent strives to balance its current reliance on fossil fuels.

That’s the prediction of the African Energy Chamber’s 2025 Outlook Report on the State of African Energy.

As I have said before, Africa will eventually rely primarily on renewable energy, as much of the rest of the world strives to — but on its own timetable, not that of Western countries who have benefited for centuries from the exploitation of fossil fuels.

To achieve a carbon neutral future, African nations must have the underlying infrastructure and industry to make the dominance of renewables possible. As things currently stand, most African states lack said infrastructure and industry, and the most feasible and expedient way for them to achieve both is through leveraging the abundant oil and gas resources so many of them possess.

As our report finds:

  • Fossil fuels account for 72% of Africa’s power generation. South Africa and Egypt are Africa’s leading producers, and their dominance will continue into the next decade.
  • Renewables account for over 27% of Africa’s power generation and are projected to increase to 43% by the end of this decade.
  • Africa accounts for 3.3% of the global power generation, with a total power generation of over 980 terawatt hours.
  • 13 GW of utility-scale solar PV and wind projects are under construction – South Africa, Egypt, Morocco, Ethiopia and Algeria account for over 75% of this capacity.

No Electricity at All

Africa will reach a point where we will rely primarily on low carbon and renewable energy

There are also significant challenges facing Africa’s energy sectors, as we cover in detail in our report.

The most pressing of those challenges is the fact that many rural areas across Africa are underserved and lack the necessary power infrastructure to access any electricity at all. In fact, of the 685 million people worldwide living without access to electricity, 590 million (86%) live in Africa. Conversely, even in well-served areas electricity is not cheap and reliable, as population and urbanization growth have outpaced the growth of power infrastructure, placing additional strain on the existing power systems. Many African households still rely on alternative, less efficient energy sources such as biomass, kerosene, etc., for heating and cooking.

One practical solution to these challenges is Western investment.

Western investment — providing both funds and technology — will help expand our existing infrastructure into underserved areas and harness our natural resources, and that will go a long way toward improving economic conditions across the continent. This will in turn improve energy affordability for many Africans as it becomes both more widely available and cheaper to access.

But where and in what should the West invest? That is up to them, but there are many development opportunities across the continent right now. I will cover just a few of the most promising, according to our outlook report.

What we found is that most North African countries see 90% access rates for electricity and are looking to enhance their power sectors while reducing reliance on fossil fuels. The bulk of renewable power share increases by the end of the decade will almost certainly be seated in this region. In contrast, sub-Saharan countries will continue to fight low electricity access for some time. They have been able to increase access to 55% currently, up from 38.3% in 2010. These countries will be ripe for investment, expanding the grid and production infrastructure to improve electrical access.

We also found that hydropower continues to dominate in East Africa, which has some of the largest dams in the world generating 19% of Africa’s overall power generation and providing up to 90% of the available power for countries such as Ethiopia and the Democratic Republic of Congo. Africa’s largest hydroelectric project, the Grand Ethiopian Renaissance Dam (GERD) is nearing completion and is expected to generate 15,760 GWh annually once fully operational. The project is of such importance to the region that it has sparked diplomatic cooperation between the Nile-bound countries of Ethiopia, Egypt, and Sudan in an effort to ensure equitable sharing of the river’s precious waters. Other currently ongoing projects such as Ethiopia’s Gibe III Dam (1870 MW), Zambia and Zimbabwe’s Kariba Dam (1830 MW) and Ghana’s Akosombo Dam (1020 MW) also speak to promising future growth and development opportunities for those willing to get their feet wet in the central and eastern parts of the continent along the Congo and Nile rivers, where nearly 90% of the continent’s hydroelectric potential remains untapped.

Geothermal power in Africa is currently dominated by Kenya, which to date is the seventh largest producer of geothermal power. Kenya’s estimated geothermal power potential is roughly 10 GW, but current operation capacity only allows 1 GW to be harnessed.

International investment is what launched Kenya’s geothermal power in the first place, with the United Nation’s development program providing the requisite research and funds in 1972 to establish the country’s first geothermal plant by the 1980s. Since then, Kenya has expanded independently, creating the state-owned Geothermal Development Company (GDC) in 2008 to both speed up geothermal advancements and lower the initial investment risk for foreign investment.

Solar Power: A Light in the Dark

Solar power offers a veritable gold mine of opportunity given Africa’s high irradiance levels: nearly 80% of the continent receives more than 2 MWh per square meter. This amounts to a solar PV potential of 1 million terawatt hours per year and a solar thermal potential of over 500,000 terawatt hours (for reference, a single terawatt hour is enough to light over 1 million homes for a year). Yet to date, Africa only generates over 35 TWh and 3.3 TWh from solar PV and solar thermal, respectively. Over 13 GW of utility-scale solar PV and wind projects are currently under construction, with hundreds more GW of capacity in the concept phase..

I would like to reiterate: Africa will reach a point where we will rely primarily on low carbon and renewable energy. But we cannot get to that point without building the proper infrastructure, and we cannot fund the building of said infrastructure without leveraging our natural resources, oil and gas being chief among them. If the west wishes to speed along Africa’s progress on this front, the best way is to work with African as partners and investors working towards common goals.

Distributed by APO Group on behalf of African Energy Chamber.

Related Topics:
Continue Reading
Advertisement

Energy

U.S.-Africa Energy & Minerals Forum Expands to Critical Minerals and Supply Chain Security

Published

2 days ago

on

February 27, 2026

By

Africa

This year’s U.S.-Africa Energy & Minerals Forum in Houston signals a strategic shift toward integrated energy and critical minerals investment, strengthening U.S. partnerships across Africa’s resource and industrial value chains

HOUSTON, United States of America, February 26, 2026/APO Group/ –The U.S.-Africa Energy & Minerals Forum (USAEMF) has relaunched with a dedicated focus on critical minerals, marking an important evolution in its role as a platform for U.S.-Africa commercial engagement. Building on its foundation in energy, power and industrial projects, the forum’s expanded scope positions it at the center of investment conversations shaping the future energy economy.

 

Scheduled for July 21–22, 2026, in Houston, Texas, USAEMF comes at a time of surging global demand for copper, cobalt, lithium, manganese and rare earth elements, driven by electrification, battery storage, AI infrastructure and advanced manufacturing. Africa is increasingly critical to securing these materials, highlighting how energy and minerals are now interconnected pillars of industrial growth, geopolitical stability and decarbonization.

The forum’s minerals mandate deepens engagement with African producers – particularly the Democratic Republic of Congo (DRC), home to some of the world’s largest copper and cobalt reserves. Momentum is building through the U.S.–DRC strategic minerals framework and the U.S.-backed Orion Critical Mineral Consortium, a major investment platform supported by the DFC and private partners. The consortium is pursuing a 40% stake in the Mutanda and Kamoto copper-cobalt operations in a $9 billion transaction, securing long-term supply for allied markets while reinforcing cooperation on infrastructure, security and supply-chain governance.

Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties

U.S. financing is also expanding across the region, with the DFC managing a continental portfolio exceeding $13 billion to support mining, processing and transport infrastructure for critical mineral supply chains. Recent commitments include rare earth, graphite and potash projects in Malawi, Mozambique and Gabon; broader investments in Uganda, Tanzania, Zambia and South Africa; and $553 million linked to the development of the Lobito Corridor. The DFC is also a major backer of TechMet, a U.S.-supported investment firm valued at over $1 billion, which is raising up to $200 million to expand copper, cobalt, lithium and rare earth assets and pursue new opportunities across the DRC and Zambia. Together, these initiatives underscore Washington’s push to diversify battery-mineral supply while positioning Africa as a long-term partner in clean energy and industrial value chains.

Houston’s role as host city reflects the alignment between American industrial capacity and African resource development. Long established as a global energy hub, the city is expanding into energy transition technologies, advanced materials, carbon management and industrial innovation. By convening African governments with U.S. private equity, development finance institutions, exporters, insurers and technical service providers, the forum creates a commercial platform capable of converting mineral potential into bankable projects.

“The evolution from USAEF to USAEMF reflects a broader shift toward integrated energy and mineral development,” states Nadine Levin, Portfolio Director at Energy Capital & Power, forum organizers. “Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties and advances projects that deliver long-term shared value.”

While critical minerals define the forum’s strategic expansion, the U.S.’ longstanding role in Africa’s energy sector remains central to the platform’s value proposition. American energy companies continue to advance exploration and development across key upstream markets, support gas monetization in the Gulf of Guinea and revitalize mature production in North Africa. U.S. export credit and development finance are also helping unlock large-scale LNG capacity in Mozambique while supporting optimization and expansion across existing gas infrastructure in West Africa – demonstrating how American capital, engineering expertise and risk-mitigation tools convert resource potential into delivered energy systems.

USAEMF is the leading platform connecting U.S. capital and technical expertise with Africa’s energy and minerals sectors. For more information or to participate at the upcoming forum, please contact sales@energycapitalpower.com

Distributed by APO Group on behalf of Energy Capital & Power.

Continue Reading

Business

Pesalink and Pan-African Payment and Settlement System (PAPSS) Unlock Cross-Border Payments in Local Currencies in Kenya

Published

2 days ago

on

February 27, 2026

By

Pesalink

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders

NAIROBI, Kenya, February 26, 2026/APO Group/ —

  • Instant 24/7 bank-to-bank transfers across African borders in local currencies.
  • Simpler cross-border payments for individuals, businesses, and SMEs.
  • 80 plus Pesalink network participants now linked to 160 plus PAPSS participating banks.

 

Pesalink, Kenya’s de facto instant payment network, has partnered with the Pan-African Payment and Settlement System (PAPSS) to ease cross-border payment and speed up regional financial integration.

 

The partnership enables instant 24/7 cross-border payments from PAPSS participants into banks and mobile money operators within the Pesalink network in Kenya, all settled in local currencies. This reduces complex correspondent banking requirements and reliance on foreign reserve currencies.

 

Kenyan banks will now be able to offer faster, cheaper cross-border payments

PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries. Pesalink is now a Technical Connectivity Provider. It means that 80 plus Kenyan bank, fintech, SACCO and telco participants on the Pesalink network will be connected to 160 plus commercial banks and fintechs on the PAPSS platform.

 

Cross-border payments remain expensive and slow for many African businesses. The 2023 (http://apo-opa.co/4baDSh7) World Bank Remittance Prices report indicates that sending money across African borders incurs on average 7-8% of the total value sent (above the global average of 6–7%). Settlement can also take three to seven business days.

 

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders.

 

Speaking during the partnership signing held at Pesalink offices in Nairobi, PAPSS CEO Mike Ogbalu III said, “For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”

 

Pesalink CEO, Gituku Kirika, said “Kenyan banks will now be able to offer faster, cheaper cross-border payments. They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”

Distributed by APO Group on behalf of Afreximbank.

Continue Reading

Events

Africa Trade Conference Returns to Cape Town with Esteemed Speakers Driving Africa’s Trade Agenda

Published

2 days ago

on

February 27, 2026

By

Africa

Second edition convenes global policymakers, business leaders, and innovators to accelerate Africa’s integration into global trade

CAPE TOWN, South Africa, February 26, 2026/APO Group/ –Access Bank Plc (www.AccessBankPLC.com) is proud to announce the distinguished line-up of speakers for the second edition of the Africa Trade Conference (ATC 2026), scheduled to take place on March 11, 2026, at the Cape Town International Convention Centre, Cape Town, South Africa. Building on the strong foundation of its inaugural edition, ATC 2026 will convene an exceptional assembly of global and African leaders, policymakers, investors, and business executives committed to shaping the future of trade on the continent.

The Africa Trade Conference has rapidly emerged as a premier platform for advancing dialogue and action around Africa’s evolving role in global commerce. The 2026 edition will feature influential voices from across finance, government, development institutions, and the private sector, who will share insights on unlocking trade opportunities, strengthening intra-African commerce, enabling business expansion, and positioning African enterprises for global competitiveness.

The confirmed speakers represent a powerful cross-section of leaders driving Africa’s economic transformation.

Building on the momentum of its maiden edition, which convened senior decision-makers from 28 countries, the 2026 conference with the theme “Turning Vision into Velocity: Building Africa’s Trade Ecosystem for Real-World Impact”, will have the keynote address delivered by Kennedy Mbekeani, Director General, Southern Africa Region, African Development Bank (AfDB), alongside Kwabena Ayirebi, Managing Director, Banking Operations at the African Export-Import Bank. Their joint keynote will address the evolving financing landscape for African trade and the strategic pathways for unlocking continental prosperity.

The welcome address will be delivered by Roosevelt Ogbonna, CEO/GMD, Access Bank Plc, who will set the tone for discussions centered on trade transformation, financial inclusion, and regional competitiveness, while Tolu Oyekan, Managing Director & Partner at Boston Consulting Group, will deliver insights on “Africa Trade Outlook 2026”, examining emerging macroeconomic trends, supply chain shifts, and growth opportunities across key sectors.  The CEO of Pan-African Payment and Settlement System, Mike Ogbalu, will be engaging the conference participants on the topic, “Building a Connected Africa Through Trade, Payments & Technology”, focusing on how payment interoperability and digital infrastructure can accelerate the African Continental Free Trade Area (AfCFTA) agenda.

The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us

The conference will also host a High-Level Ministerial Panel that features Elizabeth Ofosu-Adjare, the Minister for Trade, Agribusiness & Industry, Ghana; Tiroeaone Ntsima, Minister of Trade and Entrepreneurship, Botswana; Mr. Florian Witt, Divisional Head, International & Corporate Banking Oddo-BHF, Ms. Nathalie Louat – Global Director, International Finance Corporation (IFC), Dr Isaiah Rathumba – Head of Department, Limpopo Economic Development, Environment and Tourism and Mr. Alfred Idialu – Chief Rep Officer, Deutsche Bank among other policymakers shaping trade policy across the continent.

Commenting on the announcement, Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said:
“The Africa Trade Conference reflects our unwavering commitment to advancing Africa’s economic transformation by creating a platform that brings together the leaders, institutions, and ideas shaping the future of trade. The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us. Africa is not only participating in global trade, it is helping to redefine it. Through this convening, we aim to catalyse partnerships, unlock new opportunities for businesses, and accelerate Africa’s integration into global value chains.”

“At Access Bank, we see ourselves not just as financiers, but as connectors of markets, ideas, and opportunities. Our role is to help African businesses move from ambition to impact, from local relevance to global competitiveness.”

With operations in 24 countries globally, including 16 across Africa, Access Bank’s expansive footprint places it in a unique position to facilitate cross-border trade, unlock regional value chains, and simplify the complexities of doing business across markets.

“Our presence across Africa and key global corridors gives us a front-row seat to the realities of trade. It also gives us the responsibility to design solutions that are inclusive, scalable, and future facing. ATC 2026 is part of that commitment, Ogbonna added.

ATC 2026 is expected to catalyze partnerships, enable policy dialogue, and provide actionable strategies for businesses operating within and beyond the continent.

The Access Bank Chief puts it thus, “Africa will not be a spectator in the remaking of global trade. We will be one of its architects. ATC 2026 is where those blueprints will be drawn.”

For more information and registration, please visit https://apo-opa.co/4sdXWF7

Distributed by APO Group on behalf of Access Bank PLC.

 

Continue Reading

Trending