Access to energy is key for development – African Development Bank

Access to reliable, affordable and sustainable energy is key to Africa’s development, according to the African Development Bank, which is hosting the second Africa Investment Forum in Johannesburg.

Wale Shonibare, acting vice-president for power, energy, climate change and green growth for African Development Bank, said with close to 600 million people on the continent still lacking access to energy, there was a huge need to bridge the gap which required substantial investments into Africa’s energy sector.

“Investors recognise the opportunities in the energy sector, yet multiple barriers stand in the way of transformational private sector participation, including non-creditworthy utilities, the absence of cost-reflective tariffs and capacity constraints throughout the energy sector value chain.

“Unlocking private sector capital, therefore, must be accompanied by resolving policy and regulatory issues, and other systemic bottlenecks to create the right conditions for energy investments from outside and within Africa,” said Shonibare.

He said at this year’s forum the bank’s energy team would engage sector stakeholders in extensive consultations, knowledge exchange, networking, and peer-to-peer learning to address barriers to mobilising and scaling up private investment in the energy sector.

“During various boardroom sessions, we will focus on a range of projects, including the Inga Dam in the DRC, the Baynes hydroplant in Angola and Namibia, and the Tulu Moye geothermal development in Ethiopia.”

President Cyril Ramaphosa said the forum’s unique focus on deal-making through the boardroom sessions was yielding tangible results.

“The forum was instrumental in mobilising funding for initiatives as diverse – and as potentially impactful – as the Accra Skytrain, the Kigali Innovation City, the first road-rail bridge project linking Kinshasa and Brazzaville, and the $320 million (R4.7 billion) African Infrastructure Investment Fund.”

He said it was also an indication of existing investment opportunities in Africa in mining, oil and gas, infrastructure, agricultural production, manufacturing, renewable energy and a range of other sectors.

“The great interest this forum has garnered since it was inaugurated last year is a clear indication the international investor community is optimistic about Africa’s prospects, excited by its potential, and wants to be part of its success.”

Deputy director-general of the National Treasury Vuyelwa Vumendlini said last year over $36 billion (R534 billion) of investment interests were signed.

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