With around 600 million Africans still lacking access to electricity, the Indaba underscores the urgency of tackling energy poverty while ensuring a transition that is socially just, economically viable, and environmentally sustainable. As South Africa leads the G20, it has a critical opportunity to push for increased climate finance and investment in clean energy infrastructure that supports Africa’s development.
As G20 Chair, South Africa is uniquely positioned to champion Africa’s energy needs. This includes bridging the energy investment gap by mobilizing blended finance models and green bonds to accelerate clean energy projects. Enhancing energy security will be another priority, focusing on strengthening regional power pools and fostering cross-border electricity trade. Furthermore, Africa’s wealth of critical minerals including lithium, cobalt, and rare earth metals presents an opportunity to position the continent as a key player in EV battery production, hydrogen development, and green technology manufacturing.
The Urgent Need for Energy Security
Many African countries, still face significant energy security challenges. For Example, South Africa’s power utility Eskom, is plugged with systemic challenges, including load shedding, financial instability, and ageing infrastructure further highlight the urgent need for improved energy security and investment in renewable energy.
The crisis underscores the importance of diversifying Africa’s energy mix, modernizing grids, and attracting climate finance to ensure a resilient, reliable, and sustainable energy future. Addressing these structural weaknesses will be essential for South Africa as it takes the helm of the G20, advocating for energy solutions that benefit both the country and the broader African region. In response to these challenges, municipalities are increasingly seeking alternative financing for energy infrastructure. For instance, the City of Cape Town has secured a €150 million (approximately R2.8 billion) loan from the German Development Bank, KfW, to finance major electricity grid upgrades. Such investments are crucial in strengthening local energy resilience and reducing reliance on Eskom’s unstable grid.
The Africa Energy Indaba
The Africa Energy Indaba which convenes annually is currently being held in Cape Town from 4th– 6th March, under the theme “Igniting the Power Revolution”. The Indaba, will address many of the issues the continent’s escalating energy crisis by fostering dialogue on sustainable and resilient energy solutions.
Key discussions will center on scaling up renewable energy, exploring how Africa can harness solar, wind, hydro, and green hydrogen to power industries and households sustainably. Additionally, energy storage and smart grids will be pivotal in addressing Africa’s intermittency challenges, requiring investments in battery technology and grid modernization. Another core focus will be just transition finance, ensuring that climate finance flows equitably support vulnerable communities and workers in fossil fuel sectors.
