Cape Town, July 18, 2024 – South Africa’s energy sector stands ready to provide the rest of the continent with solutions to address its electricity challenges. This was the message from stakeholders at the Africa Energy Sector Mission on Thursday.
By participating in the Africa Energy Sector Inward Buying and Investment Mission, Brand South Africa aims to showcase advancements in the energy sector and attract additional investments to spur innovation and job creation. This mission provides an opportunity to highlight the country’s renewable energy capabilities, positioning South Africa as a preferred destination for energy-related investments.
Day three of the Continental Energy Investment Forum kicked off with Petrus Matji, Non-Executive Director of the Development Bank of Southern Africa (DBSA) stating they have implemented various strategic projects in Africa over the past three years, particularly in solar and wind energy in South Africa.
The DBSA also developed an integrated just transition investment framework. Their priority is to support Africa energy plants by looking at the transmission infrastructure as well as disruptive technologies that will support the just transition initiatives.
“The institution is committed to contributing to the 2050 net-zero emissions targets by engaging in financing and project activities that drive greenhouse gas emissions to net zero. They have developed an integrated just transition investment framework to guide their investments, with a priority on supporting energy plants in Africa. This includes focusing on transmission infrastructure and disruptive technologies, Matji said.
The Continental Energy Investment Forum is a landmark event that gathered 40 delegates from 10 African countries, including the Democratic Republic of Congo, Egypt, Ghana, Kenya, Nigeria, and the SADC, to explore South Africa’s energy capabilities and continental project opportunities. Attendees included ministers of energy and CEOs of major corporations.
Lebohang Mosetu – Senior Underwriter & Energy Project Specialist at the Export Credit Insurance Corporation (ECIC), said they believe Africa’s abundant energy resources can power the continent and drive industrialisation, especially with the recent oil and gas discoveries.
“There is funding available for these projects, but many are poorly packaged. To improve, African utilities must enhance transparency and efficiency to be creditworthy, and governments need to establish legal frameworks that allow independent power producers to supply power directly to consumers.
“Our policy supports any energy project, starting with low-cost options, including oil and gas, as key to Africa’s industrialisation. For example, we backed a Mozambique energy project with an $800 million cover to ensure the SADC can access its gas,” Mosetu said.
Delegates explored renewable energy projects through a newly published database featuring over 1,200 projects worth approximately US$249 billion while industry leaders discussed increasing intra-African trade and sustainable energy development.
Lerato Mataboge, Deputy Director General Exports at the South African Department of Trade, Industry and Competition (dtic), highlighted the opportunities for growth in the continent’s renewable energy sector.
“The AU’s goal to achieve 50% mutual trade by 2045 is ambitious, and while we are currently under 25%, this presents a great opportunity for acceleration. In South Africa, we are focusing on clearly articulating our plans and defining the roles of member states.
“Our main infrastructure challenge, the lack of integration, can be overcome through collaboration within regional economic communities beyond political cycles. By planning for regional energy supply instead of individual country solutions, we can adopt a more outward-looking approach and make significant progress. It’s time to catch up and harness the full potential of our renewable energy resources,” Mataboge said.
Hosted by the South African Electrotechnical Export Council (SAEEC) and supported by the Department of Trade, Industry and Competition (DTIC), Export Credit Insurance Corporation (ECIC), DBSA, and Brand SA, the mission aligns with the operational phase of the African Continental Free Trade Area (AfCFTA), promoting new export opportunities and boosting intra-African trade.
The event included site visits, business-to-business meetings, and high-level discussions centred on renewable energy, infrastructure development, and cutting-edge technologies.
Key areas of interest encompass solar, wind, hydroelectric, and natural gas projects and advancements in energy storage and grid modernisation.
