. Insist a just and inclusive transition is key to prosperity of Africa
Chigozie Amadi
With the growing need to transition to cleaner energy sources in Africa , some experts have raised concerns about the affordability, accessibility, and inclusivity of the transition.
However, as a good measure to ensure smooth transition, the stakeholders has called for a just and inclusive energy transition for Africa which is essential for achieving sustainable development, reducing poverty and inequality, and promoting human well-being.
They highlighted about the affordability, accessibility, and inclusivity of the transition and stressed the need for strategic funding to ensure that the shift away from fossil fuels does not disproportionately affect the continent’s vulnerable nations.
It would be recalled that Africa has a significant energy access gap, with over 600 million people lacking access to electricity. So a just transition ensures that everyone has access to reliable, affordable, and modern energy.
The experts spoke at the OTL, Africa Downstream quarterly insight series to mark the International Day Of Clean Energy , with the theme “Interrogating Just & Inclusive Energy Transition for Africa” and moderated by Mrs Joyce Akabogu, CEO, OTL Africa Downstream
Speaking at the Webinar, a prominent energy expert, with Siemens Energy Venture, Adedoyin Pearse highlighted the importance of universal energy access, the inclusion of marginalized communities, and the preservation of jobs.
According to her “Everyone must have access to electricity. It’s heartbreaking to know that even in countries like Nigeria, there are still communities that aren’t connected to the grid or have no power at all,”
She pointed out, transitioning from fossil fuels to cleaner energy sources such as wind, solar, and hydro power could displace workers in industries like coal mining, creating a need for just solutions. “We have to think about what happens to workers in coal mines, for example, as we switch to cleaner fuels. The key is to ensure that no one is left behind as we transition. People’s livelihoods and communities must be protected,” she stressed.
“The energy transition must be human-centered,” Pearse asserted. “A just transition means that we must ensure fairness and equity in how we move forward, especially in regions like Africa, where energy poverty remains widespread.”
Speaking on energy financing Pearse noted that with vast untapped resources like wind and solar energy, the need for a strategic shift in how financial backing is allocated to the region has become more urgent.
She pointed out the obstacles faced by African entrepreneurs and the energy sector as a whole. She highlighted that despite the continent’s enormous potential in renewable energy, financing remains insufficient and unevenly distributed.
“We need to raise local investors, family offices, and others who have an appetite for risk capital,” She said. “It’s not just about securing funds, but ensuring that these investors understand the technology risks, financial risks, and business models of these projects. Entrepreneurs often struggle with accessing the right funding, and even when they do, the expectations on technology or impact can be difficult to meet.”
She frowned at the current situation where Africa is noted to holds 60 percent of the world’s solar energy resources, the funding allocated to solar and wind energy in Africa remains disproportionately low.
In his presentation, the Country Manager of Vitol Nigeria, Chibuzor Ifeanyi shade more light on the current state of energy investments in Africa, especially with respect to clean energy transitions and the challenges that the continent faces in attracting financing.
Ifeanyi emphasized the growing demand for energy across Africa, while highlighting the need for significant investments to meet this demand. He pointed to the dual role of green and brownfield projects, which together contribute roughly $35 billion annually to the continent. However, he noted that the shortfall in financing is substantial, referencing global figures, such as the estimated $200 billion in worldwide energy investments.
“Do the sums and you can see for yourself that the shortfall is quite significant,” Ifeanyi remarked, underscoring the critical need for investments in energy infrastructure. He also noted that financing options are not limited to cash alone, mentioning alternatives like commercial capital, concessions, insurance, and guarantees, all of which help attract investments and mitigate the risks of energy projects.
One of the key points in Ifeanyi’s presentation was Vitol’s transition within the clean energy space. He highlighted that natural gas, particularly LNG (liquefied natural gas), has been in extremely high demand globally. He pointed out that several African countries, including Angola and Mozambique, have large LNG projects that are attracting significant investments.
“The general trend is clear. LNG is in high demand, and several countries within Africa have massive LNG potential,” Ifeanyi stated, adding that the continent’s energy sector is increasingly pivoting towards more sustainable solutions. Vitol itself is involved in a range of clean energy initiatives, particularly in the areas of bio-LNG, sustainable aviation fuel, and biodiesel.
In particular, Ifeanyi highlighted the company’s expanding presence in renewable energy. He referenced Vitol’s subsidiary, VC Renewables, which operates 24 solar projects in North America, with more than 3 gigawatts of live solar installations and an additional 2.4 gigawatts of storage projects in the pipeline.
In Africa, Vitol has been taking active steps to address energy access and sustainability. In 2002, the company entered a joint venture with the Nigerian Sovereign Investment Authority (NSIA) to establish a fund dedicated to carbon abatement projects in Nigeria. The partnership, which started with a seed capital of $50 million, aims to promote cleaner energy solutions.
More recently, Vitol’s subsidiary, Vivo Energy, has committed to investing over half a billion dollars by 2030 to facilitate cleaner cooking technologies across Africa. The company is focused on developing infrastructure such as LPG (liquefied petroleum gas) terminals to support cleaner cooking solutions for millions of households on the continent.
A similar sentiment was echoed by Ogutu Okudo, Chief Executive Officer, Guuru Energy, Kenya, another key speaker, who addressed the role of regional cooperation in Africa’s energy transition. While cross-border collaboration has shown promise in some regions, there are still significant barriers that impede the process.
“In East Africa, we’ve seen some success with countries like Kenya, Uganda, and Rwanda connecting their national grids,” Okudo shared. “This regional cooperation has been invaluable. For example, when Kenya has faced national power outages, we’ve been able to rely on neighboring Uganda to supply power. This interconnectedness is critical for the future of Africa.”
However, Okudo pointed out that the level of cooperation in other parts of Africa has been less consistent. “There are challenges with cross-border integration, especially when it comes to aligning national grids and energy policies,” she said. “But the need for interconnectivity is clear. It is essential not only for providing stable power but also for promoting economic growth and job creation across the continent.”
Despite these challenges, success stories like East Africa’s grid integration show that regional cooperation is not only possible but also essential for achieving long-term energy goals. The hope is that these examples will inspire other regions to adopt similar approaches, ultimately leading to a more unified and resilient energy sector across Africa.
She highlighted that the energy demand across the globe is expected to grow significantly, particularly in newly industrialized and less economically developed nations. Okudo pointed out that between 2010 and 2021, global energy demand grew by approximately 1.5%, and projections for 2035 suggest a sharp increase. A large portion of this growth will come from emerging economies, with Africa positioned to contribute significantly to the global energy demand.
“We are seeing a rise in energy consumption, and by 2035, 95% of the world’s energy demand increase will come from newly industrialized countries, with Africa being one of the major contributors,” Okudo explained
Africa Must Seize Opportunity for Energy Transition, Says Ian Brown at Clean Energy Event
In his presentation at the Webinar, Ian Brown, Managing Director of Afri-Inspect, delivered a thought-provoking presentation on Africa’s role in the global energy transition. Brown’s message was clear: Africa, with its vast natural resources, stands at a crossroads in terms of economic growth, sustainability, and its contribution to the cleaner, greener future the world is striving for.
Opening his speech, Brown emphasized the immense potential the African continent holds, particularly in the realm of critical minerals. “Thirty percent of the world’s critical minerals—vital for the energy transition—are found right here in Africa,” Brown said, pointing to a slide showcasing the mineral-rich regions of the continent.
These critical minerals, which include rare earth elements like cobalt, nickel, and lithium, are essential for the production of clean energy technologies. From wind turbines to electric vehicles, these minerals are key to reducing global carbon emissions and achieving the goals of the Paris Agreement. However, as Brown noted, Africa’s resources have been historically underutilized or exploited, and it is time for the continent to take control of its own economic future.
“We are talking about rare earths, cobalt, and nickel—all of which are critical for the energy transition. Yet Africa has been a net exporter of these minerals for decades, with little benefit to the local economy,” Brown pointed out. He noted that in many cases, these minerals were extracted and sent abroad in their raw form, with minimal added value to African economies. “This isn’t about exploitation, but about empowering the continent to capture the value that its natural resources can generate.”
Brown’s remarks were a critique of how African resources, particularly oil, have been handled in the past. He compared the current situation with the way fossil fuels were extracted and exported, particularly the way the West has historically profited from Africa’s oil reserves. “When oil was discovered in Africa, the infrastructure to process it already existed in Europe and the United States, so it was cheaper to just ship the oil away and let others handle the refining. Unfortunately, this same model is being applied to many of the continent’s other resources,” he explained.
