President Cyril Ramaphosa has called on participants at the Africa Energy Indaba to use the platform to unite to realise an “Africa that meets its needs for reliable and cost-effective energy”.
The annual indaba, held at the Cape Town International Convention Centre, brings together the continent’s energy leaders, policymakers, investors and development partners to advance energy security, regional integration and investment across the continent.
“This indaba is an opportunity to harness our collective efforts towards realising an Africa that meets its needs for reliable and cost-effective energy, while becoming a competitive exporter of energy in a rapidly changing global market.
“There has never been a better time for Africa to advance its energy security, resilience and sustainability. With its abundant natural resources, our continent holds immense potential for energy generation,” the President said.
Natural endowments
The African continent holds oil and gas reserves, an abundance of minerals and potential for solar, wind, hydroelectric and hydrogen fuel cell energy.
President Ramaphosa highlighted that despite these natural endowments, the continent continues to experience energy poverty.
The International Energy Agency notes that some 600 million Africans do not have access to electricity, translating into what the President described as “lost production, interrupted services, constrained investment and reduced opportunity”.
“This energy gap exists in the context of a growing continental population, rising urbanisation and renewed efforts to industrialise and integrate into the global economy. In this environment, access to reliable electricity is a competitive differentiator.
“Industrialisation cannot take place without secure supply chains, resilient villages, towns and cities, and reliable, affordable and scalable energy,” he said.
To remedy the situation, President Ramaphosa proposed an energy system that “connects Africa to itself, and one that allows our economies to grow together rather than apart”.
This vision is articulated in the African Union’s Agenda 2063, which links the continent’s development to modern infrastructure and integrated energy systems.
To operationalise this agenda, the President highlighted the Ten-Year Africa Energy Infrastructure Investment Plan, which was inaugurated under South Africa’s G20 Presidency.
“The plan recognises that Africa’s energy needs are too large to be met by incremental projects.
“There needs to be a coherent pipeline of bankable investments, supported by credible institutions, predictable regulation and partnerships,” President Ramaphosa said.
He noted that while “public finance cannot fund the full scale of Africa’s infrastructure needs alone…it can play a catalytic role in project preparation, credit enhancement and risk reduction”.
“The significance of the Ten-Year Africa Energy Infrastructure Investment Plan lies in its ability to organise the pipeline of projects in a manner that is credible to financiers and valuable to economies,” President Ramaphosa said.
Global markets
On global developments, the President reflected that the indaba is taking place at a time when global energy markets are volatile.
The continent is already facing the impact of escalating conflict in the Middle East which has led to stains on supply chains and higher energy prices.
“As we have seen with Russia-Ukraine and during the COVID-19 pandemic, shifting geopolitical sands underscore the vulnerabilities of import-dependent economies across Africa.
“These vulnerabilities sharpen the case for regional and continental energy security and diversification. As such, this Indaba is timely and strategic. It is an opportunity to position our continent in a rapidly changing geopolitical context,” he said.
The President expressed confidence in the continent’s ability to deliver for its people.
“Africa has what it needs to succeed. It has resources. It has people. It has growing institutions and expanding cooperation. The remaining task is to match this potential with sustained implementation, to translate plans into projects, and to turn projects into reliable power that supports industry, jobs and dignity.
“The present moment calls for unity of effort. It calls for partnerships that recognise that Africa’s growth is not a risk to be managed, but an opportunity to be realised. It calls for a shift from potential to delivery, from promise to construction
“I am confident that this Indaba will help strengthen cooperation, accelerate investment and contribute to building energy systems worthy of Africa’s promising future,” President Ramaphosa concluded. - SAnews.gov.za
