Energy Minister: Financing is the Key to Africa's Power Potential
Ghana's Energy and Green Transition Minister, Dr John Abdulai Jinapor, has identified financing as the biggest barrier to unlocking Africa's energy potential. He made the comments at the Stellenbosch Business School Alumni Association Thought Leadership Forum in Accra on Thursday, on the theme: “Technology-Powered Africa: Financing Sustainable Energy & Enterprise Transformation.”
Africa's Energy Sector Constrained by High Capital Costs
Dr Jinapor said Africa's energy sector is constrained by high capital costs linked to perceived risks, limited investment concentration, and inadequate funding for energy access and infrastructure. He noted that public and private financiers, including G20-linked institutions and multilateral development banks, mobilized about US$345 billion for African energy projects between 2012 and 2021.
Financing Structures Needed to Unlock Energy Potential
Dr Jinapor urged African governments to prioritize strategic and collaborative financing to develop sustainable and resilient power systems and deepen regional electricity trade. He said the continent possesses significant energy resources, including strong solar potential and oil and gas reserves in countries such as Nigeria, Mozambique, Algeria, and Senegal. However, more than half of Africans lack access to electricity, with many households relying on inefficient firewood use for cooking.
Closing the Gap Between Energy Potential and Reality
Dr Jinapor said the challenge is particularly evident in clean cooking, where health problems, deforestation, and waste are contributing factors. He called for effective funding structures, cost controls, and government commitment to close the gap between Africa's energy potential and reality. He emphasized that with the right funding structures, cost controls, and government prioritization, Africa can unlock its energy wealth to drive industrialization and poverty reduction.
Strengthening Technological and Data Capabilities
During a panel discussion, speakers called for a common vision on sustainable development and collective action to achieve it. They cited mobile money as evidence that technology can succeed in Africa when adapted to local realities. The speakers urged similar approaches in sectors such as energy access, highlighting the need to strengthen Africa's technological and data capabilities.
Prioritizing Actions and Capitalizing Economic Transformation
Dr Jinapor encouraged African governments to prioritize actions, capitalize economic transformation, and manage energy resources as an economic base, not as a social handout plagued by subsidies and overspending. He emphasized the need for sustained investment in transmission, distribution, and energy storage, as well as stronger cross-border electricity trade to improve energy security.
Source: Joy Online
