Monday, January 13

Opinion

Decentralized power generation
  • Decentralized power generation—typically based on solar home systems and mini-grids—is the best bet to eradicate energy poverty among people in more isolated rural areas.
  • By decentralizing power generation, Africa can secure a sustainable energy future and improve the lives of millions of people.
  • Standalone power systems or localized power networks (otherwise known as “mini-grids”) have become efficient means of power that utilize solar in combination with battery storage and backup generators.

Think about a time when your electricity went out. As you sat in the dark, maybe you wondered how long it would be before you could power up your computer again. Or perhaps you considered what you could make for dinner that didn’t require cooking.

Many people in Africa don’t need to imagine such a scenario — they live it. Every day.

A large portion of the continent, primarily in sub-Saharan Africa, lacks access to reliable and affordable electricity. …

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Africa's unicorns unicorms
  • To vastly increase the number of gazelles—and by extension, the likelihood of unicorns—stakeholders must work together to overcome existing barriers.
  • Under ideal circumstances, gazelles—fast-growing companies essential for economic growth and employment—can mature into unicorns.
  • To get unicorns, however, the key lies in cultivating gazelles first. Across Africa, there is a clear need to focus on the imperatives that can drive this transformation.

Gazelles. Camels. Elephants. In the language of venture capital, we have a full menagerie to describe a startup’s growth progression. However, in the past decade, the ultimate aspiration remains the unicorn: privately held companies valued at over $1 billion.

Globally, there are approximately 1,200 unicorns across various industries, and while Africa’s list is smaller, it is growing. As of February 2023, the seven identified African unicorns predominantly operate in the fintech and digital sectors, addressing payment challenges across the continent.

For many startups in Africa, achieving unicorn status …

African Energy Angola Nigeria
  • Majority of 2024’s capex was driven by established producers like Angola and Nigeria.
  • Senegal is an example of how operator-friendly policies, political stability, and vast reserves can attract foreign investment.
  • Africa holds nearly 18 trillion cubic meters of natural gas reserves, which will prove essential for a just energy transition.

I’ve said for years that African energy is a vital investment. Backers clearly agree — to the tune of $47 billion. That’s how much capital expenditure (capex) 2024 saw in African oil and gas, showing a 23 per cent increase from last year. Better yet, we expect growth to continue through the end of the decade.

This capex activity is a welcome sign that energy majors are deepening their long-term interests in Africa. And as our 2025 State of African Energy report details, their momentum has created unique opportunities for local communities, indigenous companies, and national oil companies (NOCs) from …

Africa's natural gas
  • Africa’s natural gas sector stands poised to prepare the entire continent for eventual decarbonization, as do many of the companies operating here.
  • Energy companies are describing policies that call for pursuing energy transition measures for tomorrow while providing the natural gas to power the world today.
  • Africa continues to hold immense natural gas potential and is positioned to not only increase its outputs but also capitalize on the underserved LNG market and meet Europe’s ongoing demand.

The recently signed liquefied natural gas (LNG) development project in South Africa’s Mpumalanga province is a promising step on the long road to Africa’s just energy transition.

The project, being jointly developed by Kinetic Energy of Australia and the Industrial Corporation of South Africa (IDC), a national development finance institution, will capitalize on Kinetic Energy’s recent 3.1 billion cubic feet natural gas discovery in Amersfoort, Mpumalanga. The project is expected to produce 50 megawatts …

fossil fuels
  • The final agreement of the Dubai climate summit mentions for the first time a transition “away from fossil fuels.”
  • This is certainly a step on the right path, but that remains far too insufficient to respond to the urgency and severity of the climate crisis, particularly for vulnerable countries.
  • For millions of Africans, the climate crisis affects every aspect of life, from food and housing to access to clean water and clean energy.

World leaders have finally reached an agreement that the world must abandon fossil fuels to prevent catastrophic climate change, following 30 years of intense and painful negotiations.

This concession was achieved in response to the outcry caused by the previous draft, which did not explicitly acknowledge the necessity of transitioning away from fossil fuels.

Although some hail the Global Stocktake as ‘historic,’ it does not clearly signal an “exit” from oil, gas, and coal, as the …

critical minerals cobalt
  • Africa holds more than half of the world’s reserves of cobalt, 46% of its manganese, and 21% of its graphite, all used in EV batteries, and about a quarter of its bauxite, which is required for solar photovoltaic technologies.
  • For decades, Africa has allowed her raw materials, including oil and natural gas, to be exported raw, without a chance to benefit from the finished product.
  • As a result, we’ve missed out on the job creation, industrialization, and economic diversification.

To meet their green agendas, the European Union, US, and China are engaged in the modern-day equivalent of a gold rush. This time, though, fortune seekers aren’t panning for shiny nuggets in Canada, America, or Australia. Instead, all eyes are on the critical minerals of Africa—cobalt, graphite, lithium, and others—raw materials essential to the production of clean technology, including electric vehicles (EV).

To say that Africa is generously endowed in this …

energy transition Africa
  • African countries have every right to set the timing for their energy transition.
  • Africa still needs time–time that the Western world has already had and, frankly continues to milk–to resolve energy poverty and industrialize.
  • The continent’s oil and gas production, when managed strategically, provides a pathway for economic growth, energy transition and security.

About a year ago, before COP27 began in Egypt, Fiona Harvey and Matthew Taylor wrote in an opinion piece for The Guardian that it was time for gas exploration in Africa to stop.

“Africa must embrace renewable energy, and forgo exploration of its potentially lucrative gas deposits to stave off climate disaster and bring access to clean energy to the hundreds of millions who lack it, leading experts on the continent have said,” they wrote.

This is hardly new. For several years now, wealthy nations and environmental organizations have been strong-arming African countries to leave their petroleum …

energy transition
  • Asking developing nations to ignore natural gas in the energy transition plan is essentially requesting that they ignore half their power capacity.
  • Currently, far too many people in Africa can’t buy milk from a refrigerated grocery aisle, do schoolwork after sunset, or get an X-ray at their local hospital.
  • Many Western states supplement their grids with wind or solar but ultimately rely on natural gas, oil, or coal.

Western leaders often urge African nations to make a rapid transition from fossil fuels to renewable energy sources. They seem to think that African nations can switch to renewable power sources fairly easily if a good energy infrastructure is already in place.

But this is not the case in Africa, where roughly half of the population lacks access to electricity. Far too many of our people can’t buy milk from a refrigerated grocery aisle, do schoolwork after sunset, or get an X-ray …

Developing Nations
  • The 2009 Copenhagen Accord was not a binding promise but set up a durable framework for future talks.
  • One of these solutions is for African countries to use crude oil, natural gas, and other hydrocarbons to develop their resources and use the revenues to finance energy transition.
  • In the process, they should also seek to meet several other complementary goals, such as building gas-fired plants that can provide cleaner power than existing coal.

From an African perspective, one of the most important things to come out of COP15, the 2009 United Nations Climate Change Conference in Copenhagen, was the formal recognition of the fact that lower-income countries were not in a position to bear as much of the cost of the energy transition as their higher-income counterparts.

That recognition was spelt out in the section of the Copenhagen Accord that included a pledge from the world’s highly developed states to …

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