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

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1 year ago

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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.

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$2.1 Billion and Counting: African Real Estate Is Executing

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2 hours ago

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July 21, 2026

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Africa

Ahead of the 17th Africa Property Investment (API) Summit in Cape Town, investment pipelines are converting into a record number of transactions as the continent’s real estate and hospitality sectors move from potential into real momentum

CAPE TOWN, South Africa, July 21, 2026/APO Group/ –Verified data gathered from across Africa’s real estate investment landscape reveals that the continent’s leading property and hospitality roleplayers completed more than $2.1 billion worth of transactions over the past 18 months, representing one of the most concentrated periods of institutional real estate deal activity in the continent’s history.

 

Download Document: https://apo-opa.co/3TraTiH

The 28 transactions (across nine countries and eight asset classes) were closed by API Summit stakeholders from across the institutional property ecosystem – spanning listed capital markets, commercial, residential, hospitality, logistics and alternatives.

The full African Deals Index report – compiled in collaboration with Broll, the data and insights partner for API Summit 2026 – will be unveiled on the opening day of the event, taking place at the Cape Town International Convention Centre on 17 and 18 September.

Talk turning to investment action

The deal-making activity is a signal of the much-spoken-about potential for Africa converting into tangible action, driven by enhanced investor confidence.

“This isn’t a forecast – it’s a balance sheet. $2.1 billion in completed transactions tells you African real estate has moved past the conversation about potential and into the discipline of execution,” said Malcolm Horne, Group CEO of Broll Property Group.

Horne highlighted several key shifts reflected in the data.

“What’s notable is where the conviction is coming from: domestic pension capital acting as a structuring investor, not a passive landlord, and green-linked financing becoming a board-level decision, not a marketing line. At Broll, we see this in our own data every day – across the assets we manage, the cost of capital is increasingly tied to the quality of the asset, not just its location.

“That’s the market maturing in real time, and it’s exactly the momentum my team and I are looking forward to presenting and unpacking at API this year.”

The 17th Annual API Summit takes place under the theme Bold Capital. Real Momentum. and is expected to attract over 600 delegates from more than 30 countries.

Niyi Adeyele, Head of Real Estate Finance, Africa Regions at Standard Bank Group, commented on the evolution of real estate sector funding across Africa.

“It remains interesting to track the resilience and the evolution of activities in the sector, from growing capital market activities, to the rapidly increasing participation of domestic capital sources within the African continent from domestic focused institutional capital sources such as pension funds and family offices to pan-African investor platforms that tend to operate across multiple countries.”

He said that accordingly, sectoral activity levels remain positive, with the “growing pace of green field projects in key markets” providing “early indications of a new growth cycle for the sector”.

Investors now have listed, liquid exposure to African real estate, and issuers have a repeatable route to permanent capital

Major moves from domestic capital and DFIs

Domestic pension capital has moved decisively beyond its traditional role as a passive landlord, emerging as an active, structuring investor in African real estate – a shift that will be central to discussions at the summit.

The charge was led by South Africa’s Government Employees Pension Fund (through the Public Investment Corporation and retail property powerhouse Pareto), which concluded commercial, residential and industrial transactions valued at over $343.5 million since the start of 2025.

“Through the Standard Bank Group’s franchise operations across multiple countries, there are observed increase deployment of institutional capital to across key markets driving increased primary and secondary market activities,” said Adeyele, pointing to examples such as Grene Capital’s raising of $100 million from Nigerian pension for property investments in Nigeria and beyond.

Sustainability-linked deal leads the way

Sustainability remains a critical factor in real estate financing considerations – evidenced by the largest transaction completed over the past 18 months.

Standard Bank and its African Regions brand Stanbic (along with Rand Merchant Bank) acted as co-lender on a $300 million green financing facility to facilitate Lango’s bid to become Africa’s first Green Pure Play real estate company, with 90% of its portfolio certified according to international standards.

Amongst several other milestones, the Africa Logistics Property (ALP) Industrial REIT listing on the Nairobi Stock Exchange in March 2026 was notable as East Africa’s first listing featuring entirely IFC EDGE-certified green buildings.

Listed capital makes major moves

REIT capital markets were the second largest asset class by value across the period, accounting for $568.5 million of activity, with the action extending well beyond South Africa’s established counters.

East Africa welcomed ALP’s Industrial REIT (marking the region’s first industrial and first USD-denominated security); Centum’s TRIFIC Dollar I-REIT (the first green, income-distributing USD-denominated) and Acorn Holdings’ build-to-rent D-REIT.

On Zimbabwe’s Victoria Falls Stock Exchange, the Pfuma Fund REIT and Eagle REIT both listed, deepening a hard-currency capital market that scarcely existed five years ago.

“Seeing multiple REITs listing on exchanges in one cycle tells you the asset class has crossed from novelty to norm. Investors now have listed, liquid exposure to African real estate, and issuers have a repeatable route to permanent capital,” said Raghav Gandhi, CEO of ALP.

API Summit 2026 – ushering in the next wave of deals

The unprecedented commitment of capital into Africa’s real estate sector takes centre stage when the 17th Annual API Summit convenes. Welcoming the investors, developers, financiers and policymakers behind the continent’s most prominent deals, this year’s event features a new Multifamily Forum alongside the popular Hospitality and Proptech Forums; an impactful main plenary, workshops, deals and meetings rooms and investment showcases, and the 10th edition of the prestigious API Awards.

For more information and to register, visit www.APISummit.co.za

Distributed by APO Group on behalf of API Events.

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ST Telemedia Global Data Centres Delivers on Responsible Scaling, Surpassing 2028 Carbon Intensity Target Three Years Early with Renewables at 83.2%

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July 21, 2026

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ST Telemedia

SINGAPORE – Media OutReach Newswire – 21 July 2026 – ST Telemedia Global Data Centres (STT GDC) today published its 2025 Environmental, Social and Governance (ESG) Report, setting out how the Singapore-headquartered global data centre provider is meeting accelerating demand, including from AI-driven workloads, through infrastructure that is more resilient, efficient and sustainable by design. The report highlights 83.2% renewable energy usage, a 70.5% reduction in carbon intensity from its 2021 baseline, 41.2% improvement in water usage effectiveness (WUE) from the 2020 baseline, and continued progress in embedding ESG considerations into how STT GDC designs, builds, finances and operates its data centres at scale.

The report positions responsible growth as a core business discipline for STT GDC, linking sustainability performance to long-term asset resilience, customer trust and operational excellence. Across its global platform, STT GDC is integrating ESG considerations into capital allocation, site selection, design, operations, risk management and workforce development to support reliable digital infrastructure at scale.

Bruno Lopez, President and Group Chief Executive Officer, ST Telemedia Global Data Centres, says, “The next phase of digital growth will be defined by how the industry resolves the tension between rising demand — particularly from AI — and the finite nature of energy, water and land. Responsible scaling is therefore not a sustainability commitment alone; it is a commercial and operational imperative that shapes where we build, how we design, and how we run our data centre platform. Our 2025 progress reflects disciplined execution of a strategy we have been advancing for years, delivering meaningful improvements in energy efficiency, emissions and resource management across our global platform. As we scale further, we will continue to advance with the same discipline — in the infrastructure we build, the governance that underpins it, and the positive impact we create for the communities and ecosystems we are part of.”

Scaling efficient, lower-carbon infrastructure

STT GDC continued to advance its decarbonisation strategy in 2025, delivering measurable reductions in emissions and improvements in resource efficiency while scaling its global data centre platform to meet rising digital demand. The Group’s approach focuses on embedding sustainability into the design and operation of its infrastructure, enabling long-term performance while managing growing energy and resource requirements. Key environmental achievements include:

Furthered renewable energy adoption, with 83.2% of electricity consumption sourced from renewables, supporting STT GDC’s transition towards carbon-neutral operations by 2030.
Reduced carbon intensity by 70.5% from the 2021 baseline, surpassing STT GDC’s 2028 target three years ahead of schedule, alongside a 15.2% year-on-year reduction in absolute Scope 1 and 2 emissions
Improved energy efficiency across operations, achieving an average Power Usage Effectiveness (PUE) of 1.44, a 13.0% improvement from the 2020 baseline, reflecting continued optimisation of data centre design and operations.
Enhanced water stewardship, with Water Usage Effectiveness (WUE) improving by 41.2% from the 2020 baseline, supported by a balanced approach to managing energy and water use in cooling systems.
Continued progress in sustainable infrastructure, with 48% of its data centres achieving green building certification, reflecting the integration of sustainability considerations across the lifecycle of its facilities.
Building a safe and future-ready workforce

As STT GDC continues to scale its global data centre platform, investing in people, safety and workforce capabilities remains central to delivering reliable and sustainable operations. In 2025, the Group maintained a strong focus on safeguarding its workforce, strengthening organisational capability and supporting the development of future-ready talent to meet the growing demands of the digital economy. Key social achievements include:

Maintained strong safety performance, with zero work-related fatalities and a Total Recordable Incident Rate (TRIR) of 0.1 across more than 41 million hours worked, reflecting robust health and safety management across construction and operations.
Strengthened workforce capability, with an average of 18 training hours per employee, supporting the development of technical, operational and leadership skills across the organisation.
Advanced diversity and inclusion, with 21.7% women representation across the Group, reinforcing ongoing efforts to build a more inclusive and balanced workforce.
Expanded talent development initiatives, including the DC Power Up programme and partnerships with 10 Institutes of Higher Learning across our markets, helping to build a pipeline of industry-ready talent for the growing digital infrastructure sector.
Deepened community and workforce engagement, through skills development programmes and industry-academic partnerships that support long-term talent development and contribute to local economic growth.
Strengthening Governance and Resilience at Scale

Strong governance, disciplined risk management and robust operational controls underpin STT GDC’s ability to scale responsibly in an increasingly complex digital environment. In 2025, the Group continued to strengthen its enterprise-wide approach to governance, embedding ESG considerations into decision-making, risk management and day-to-day operations to support long-term resilience and performance. Key achievements include:

Strengthened governance and ethical business practices, with 100% of employees completing anti-corruption training, reinforcing STT GDC’s commitment to integrity and accountability across its global operations.
Enhanced enterprise-wide risk management, incorporating climate, cybersecurity and operational risks into planning and decision-making, ensuring infrastructure resilience as the Group scales.
Advanced cybersecurity and operational resilience, including strengthened governance, technical controls and preparedness through initiatives such as executive-level cyber exercises and risk assessments across key facilities.
Improved supply chain governance, embedding ESG criteria into procurement processes and reinforcing responsible sourcing practices across its global vendor network.
Strengthened organisational alignment and execution, through the inaugural Group ESG Summit, supporting capability building and consistent application of ESG priorities across markets.
These efforts come as data centre operators face growing expectations to deliver capacity while managing energy, water, climate and cybersecurity risks with greater transparency and accountability.

STT GDC’s 2025 ESG Report reflects a continued evolution in how the Group approaches sustainable growth, with a stronger focus on disciplined execution, operational resilience and long-term performance as it scales its global platform. As digital infrastructure becomes increasingly critical to economies and societies, STT GDC will continue to embed sustainability, risk management and governance into how it designs, builds and operates its data centres.

By working closely with customers, partners and communities, the Group aims to deliver infrastructure that is not only efficient and resilient, but also capable of supporting the next phase of digital growth, including AI-driven workloads, in a responsible and sustainable way.

The full 2025 ESG Report is available at https://www.sttelemediagdc.com/about-us/our-esg-progress

About ST Telemedia Global Data Centres
ST Telemedia Global Data Centres (STT GDC) is one of the fastest-growing data centre providers with a global platform serving as a cornerstone of the digital ecosystem that helps the world to connect. Powering a sustainable digital future, STT GDC operates across Singapore, the UK, Germany, Italy, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, providing businesses an exceptional foundation that is built for their growth anywhere. For more information, visit https://www.sttelemediagdc.com/

 

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London Showcase to Bring Venezuela’s Energy Opportunities to Global Investors Ahead of 2026 Summit

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8 hours ago

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July 21, 2026

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A high-level London industry showcase on July 30 will bring together UK and European investors, financiers and energy leaders to explore emerging opportunities across Venezuela’s oil, gas and power sectors ahead of Venezuela Energy Week 2026

LONDON, United Kingdom, July 17, 2026/APO Group/ –As Venezuela accelerates efforts to revitalize its energy sector and attract international investment, Venezuela Energy Week 2026 will host an exclusive Industry Showcase in London on July 30, bringing together investors, financial institutions, international oil companies, commodity traders and energy executives for market intelligence, networking and partnership development ahead of the flagship conference taking place this October in Caracas.

 

Designed as a strategic preview of the main event, the London showcase will provide UK and European stakeholders with first-hand insight into Venezuela’s evolving investment landscape while creating opportunities for commercial dialogue with industry leaders, potential partners and key decision-makers.

Home to the world’s largest proven oil reserves and significant natural gas resources, Venezuela is entering a new phase of energy development focused on increasing production, expanding gas commercialization and modernizing critical infrastructure. Ongoing reforms and renewed international engagement are creating opportunities for companies able to provide capital, technology and technical expertise.

The timing is particularly significant as several UK and European energy companies continue to strengthen their presence in Venezuela. UK-based majors Shell and BP are advancing key natural gas developments, with Shell preparing for 2027 drilling at the Dragon offshore gas project and BP signing agreements in April to develop the Cocuina-Manakin offshore gas field, marking its return to the Venezuelan market. Spain’s Repsol recently announced plans to increase production from its Venezuelan assets, while Italy’s Eni is relaunching a heavy crude project in the Orinoco Belt. France’s Maurel & Prom, meanwhile, remains a key partner in strategic assets such as the Urdaneta Oeste field. On the trading and commercialization front, Geneva-headquartered energy trader Vitol has renewed its engagement with Venezuelan crude exports, reflecting broader international interest in reconnecting the country’s resources with global markets.

Against this backdrop, the London Industry Showcase will highlight Venezuela’s re-emerging investment potential while creating a platform for strategic networking and direct engagement with government leaders, national energy companies, regulators and private sector partners.

The event is expected to attract representatives from investment funds, export credit agencies, commercial banks, private equity firms, commodity traders, engineering companies, technology providers and UK-based independent energy companies exploring opportunities across Venezuela’s energy value chain.

The showcase will also provide an exclusive preview of Venezuela Energy Week 2026, including ministerial dialogues, executive forums, technical conferences and dedicated business-to-business networking sessions designed to connect international investors with the decision-makers shaping the country’s energy future.

Taking place on October 26–29, 2026 in Caracas, Venezuela Energy Week serves as the country’s premier platform for advancing investment across the oil, gas and power sectors. By bringing the conversation to London – one of the world’s leading financial and energy centers – the Industry Showcase builds momentum ahead of the flagship event while strengthening ties between international capital and one of the world’s most resource-rich energy markets.

To participate in the London Industry Showcase on July 30 or secure your place at Venezuela Energy Week 2026 in Caracas this October, contact info@venezuelaenergyweek.com to learn more about delegate, sponsorship and partnership opportunities.

Supporting Venezuela’s Earthquake Recovery

 

Our thoughts are with the people and communities affected by the recent earthquakes in Venezuela. As the country begins the long process of recovery, we encourage members of the global energy community to support relief and reconstruction efforts through the CAF Recovery and Reconstruction Fund for Venezuela, which channels contributions from individuals, companies and organizations to emergency assistance, essential services and long-term rebuilding efforts.

 

To learn more or make a contribution, please visit the CAF Recovery and Reconstruction Fund for Venezuela (https://apo-opa.co/3RKKqfz).

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

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