Is solar the answer to Africa's energy needs

In recent years, solar energy has been emerging as a viable solution to address Africa's pressing energy needs. CNBC Africa had the opportunity to speak with Bernie Sheahan, the Global Director of Infrastructure and Natural Resources at the International Finance Corporation, to gain insights into why he is optimistic about the prospects of solar energy in Africa. Sheahan highlighted that this is an exciting moment in the energy sector, presenting Africa with unprecedented opportunities to tackle key challenges such as electrification, reliability, and cost reduction for manufacturing and job creation. Solar energy, once considered inadequate, has now become a game-changer for many African countries. Sheahan emphasized that solar is now the cheapest way to add new energy capacity, surpassing expectations from just a few years ago. Countries like South Africa have led the way in embracing solar power, demonstrating its cost-effectiveness and efficiency. With solar energy priced at less than five cents per kilowatt-hour in several countries, it has become more affordable than building new coal plants and offers a faster deployment timeline. The International Finance Corporation is committed to supporting other African nations in replicating South Africa's success in solar energy adoption. They aim to leverage the lessons learned from leading countries like South Africa to simplify the process of integrating new technologies into the energy grid. Through initiatives like 'scaling solar,' the IFC is assisting smaller countries in navigating the complexities of transitioning to sustainable energy sources. Private sector involvement is crucial in driving the expansion of solar energy across Africa. While there is significant interest from the investment community, many investors face challenges due to perceived risks in African markets. Sheahan stressed the importance of establishing clear regulatory frameworks, similar to those implemented in South Africa, to instill confidence among investors. By guiding countries like Zambia, Senegal, Ethiopia, and Madagascar under the scaling solar initiative, the IFC aims to create a conducive environment for investment in solar energy projects. The enthusiasm within the investment community for solar energy in Africa is palpable, but the road ahead is not without its challenges. By building on the successes witnessed in countries like South Africa and extending support to other African nations, the potential for a solar energy revolution in Africa appears brighter than ever before.