Promoting Africa’s sustainable energy agenda

In a recent interview on CNBC Africa, Daniel Alexander Schroth, the Director of the Renewable Energy and Energy Efficiency Department at the African Development Bank (AfDB), emphasized the critical importance of promoting Africa's sustainable energy agenda. The focus of the discussion was on Africa's unique position in the global climate change landscape, where the continent contributes a mere 3% of global CO2 emissions but faces the most severe impacts of climate change. Schroth highlighted that 9 out of the 10 most vulnerable countries to climate change are in Africa, underscoring the urgent need for a transition towards renewable energy sources. With close to 600 million people lacking access to electricity and over 900 million without clean cooking solutions, Africa is at a crossroads in its energy development journey. Despite these challenges, Africa boasts vast renewable energy potential, making the shift towards clean energy not only a necessity but also a tremendous opportunity for the continent's transformation. The AfDB's recent agreement with Ghana and Switzerland for the financing of the Ghana Mini-Grid and Solar Photovoltaic Net Metering project is a step in the right direction towards achieving energy efficiency on the continent. The project aligns with the bank's initiatives to drive sustainable energy solutions and foster climate resilience in Africa. Schroth addressed the ambitious global target of achieving net-zero carbon emissions by 2050, acknowledging the disparity in development levels among countries. While some African nations may require more time to transition fully to renewable energy, Schroth emphasized the significant opportunities for the continent to leapfrog traditional development pathways by embracing green technologies like green hydrogen. Africa's abundant renewable energy resources present a foundation for building industries and businesses that are sustainable and future-ready. The key to accelerating the transition to renewable energy lies in addressing critical factors such as financing, technology, and capacity building. Schroth highlighted the need for increased investment in renewable energy projects and early-stage financing to prepare projects for funding. The AfDB's Sustainable Energy Fund for Africa plays a crucial role in providing catalytic financing to reduce risks and attract investors. Additionally, advancements in technology, such as battery storage, are making renewable energy solutions more cost-competitive and scalable. Building the capacity of stakeholders and fostering collaboration with the private sector are essential components of driving the energy transition in Africa. Schroth noted the proactive engagement of the private sector in renewable energy projects, citing the Desert to Power initiative as a flagship program that is mobilizing private sector investments in vulnerable countries like Chad and Burkina Faso. While risks exist, particularly related to political stability and off-take guarantees, Schroth emphasized the importance of deploying risk mitigation instruments and credit enhancement mechanisms to support private sector participation in the renewable energy sector. The conversations around sustainable energy development underscore the shared commitment of stakeholders to accelerate Africa's transition towards a greener and more sustainable energy future.