AfDB Director says Africa has potential to become energy super power

The ongoing Conference of the Parties (COP27) in Sharm El Sheikh, Egypt has brought discussions on Africa's energy potential to the forefront. Wale Shonibare, the Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank, highlighted the pivotal role that green hydrogen could play in catalyzing Africa's investment and infrastructure agenda. In an exclusive interview with CNBC Africa's Ridhima Shukla, Shonibare emphasized the importance of carbon pricing in driving the continent's transition towards cleaner energy solutions. As the implementation COP unfolds, stakeholders are looking for tangible actions to address the pressing energy challenges faced by the region. Shonibare underscored the significance of mobilizing investments in Africa and leveraging its natural resources to finance critical infrastructure projects. The conversation delved into the discrepancy between funding for fossil fuels and green energy, pointing to the urgent need to shift towards sustainable practices. While acknowledging the complexities of balancing political interests with environmental imperatives, Shonibare stressed the imperative of accelerating reforms to reduce fossil fuel subsidies and incentivize greener alternatives. The discussion also shed light on regulatory frameworks aimed at promoting sustainable practices within the private sector. Shonibare pointed to the role of initiatives such as carbon border adjustment taxes in driving compliance and fostering a transition towards cleaner energy models. Green hydrogen emerged as a game-changer in Africa's energy landscape, offering a pathway to harness the continent's abundant renewable resources. Shonibare highlighted the AFDB's ambitious programs, such as the Desert to Power initiative, aimed at enhancing energy access and promoting renewable energy deployment across the Sahel region. The interview also touched upon the need for continued innovation in the energy sector to drive down costs and enhance the affordability of green hydrogen solutions. As technological advancements pave the way for a more sustainable energy future, Africa stands poised to emerge as a leading energy superpower, leveraging its vast renewable potential to fuel industrialization and economic growth.