Africa needed to raise $1 trillion (R19 billion) to achieve Africa Union’s flagship project for an African Single Electricity Market (AfSEM) by 2040, Amani Abou-Zeid, the Commissioner for Infrastructure and Energy of the AU Commission, said yesterday.
The commission has amassed R30 billion to date for the project.
Abou-Zeid was talking on the sidelines of the 14th Assembly of International Renewable Energy Agency (Irena) convention on Tuesday, which officially kicks off on Wednesday in Abu Dhabi, United Arab Emirates, and runs for two days.
The creation of AfSEM - one of the largest electricity markets in the world, covering a population of more than 1.3 billion – requires physical interconnection of Africa’s continental energy infrastructure.
“We can do it,” she said, adding that while it was ambitious target it provided excellent investment opportunities for others.
The Energy Master Plan, in terms of energy generation, is looking at off grid solutions, regional cross border interconnections and distribution harmonisation of policies across the continent, leading to an Africa-wide electricity market.
Abou-Zeid said, “This cannot happen of course without massive investments, to reach the target we will need about $1.3 trillion.”
Getting funding was a challenge. Africa had been stereotyped and labelled by things that happened in the 19th century, she said.
“There is a misrepresentation of Africa at the international level as the unstable continent that’s a risky place This has been proven wrong by five studies by unbiased international organisations. This had led to high risk profiles, higher interest rates, leading to a higher cost of capital, which has to stop now more than ever,” Abou-Zeid said.
Now more than ever the world needed Africa and the continent was front and centre for energy transition for the world.
“It’s about time the world wakes up to Africa,” Abou-Zeid said, adding that the world’s energy transition could not happen without Africa.
Africa was the leading region when it came to renewables.
“Africa has the biggest and share of renewables in our energy mix at 40% which is the highest of any other region in the world,” the commissioner said.
Africa’s electricity consumption was five times less than the global average consumption.
"Moreover, 90% of our population, almost 1 billion Africans do not have access to clean cooking, leading to the premature deaths of more than 300 000 Africans every year,“ she said, saying this was a major tragedy, mainly affecting women.
In response, the AU had accelerated and expedited several initiatives aiming at ensuring universal access to electricity and bridging the poverty gap, including clean cooking for the entire population.
However, she said, "The lack of funding for renewable energy to Africa is a two-way street.“
Abou-Zeid said, “There is something to be done at the national level and at the international level. At the national level we need to ensure that we have the investment climate and our investment policies are ones that are attractive for international finance. That we project ourselves the right way.”
Currently Africa only has 2% to 3% of energy funding available globally.
The Irena meetings, hosted by Rwanda, is represented by more than 1300 participants from 144 countries, including ministers, industry leaders, and CEOs to chart a strategic way forward across countries, regions, and the world, in light of the findings of the first Global Stocktake at COP28.
Under the theme “Outcome of COP28: Infrastructure, Policies, and Skills for Tripling Renewables and Accelerating the Energy Transition”, the 2024 Assembly explores priorities for the energy transition and immediate steps to accelerate progress towards tripling renewable power capacity to at least 11 terawatts by 2030.
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