Locally-Led Energy Transition in Africa

African nations are tailoring their energy transition strategies to local needs rather than following developed countries' pathways, according to Anibor Kragha, Executive Secretary of African Refiners & Distributors Association (ARDA). The focus is on improving access, supporting industrial growth, and enhancing resilience.

Countries like Angola, Uganda, and South Africa are actively investing in diversified energy projects such as solar and hydropower. Despite necessary bold visions, structural changes are crucial to progress from projects to transformative change. Critical factors include sustainable finance, regional integration, and investor-friendly policies.

The African Development Bank estimates the transition cost at $100 billion annually until 2040. However, current funding is insufficient. Hence, innovative financing models that blend public and private funds are needed to reduce investment risks. Moreover, regional collaboration and simplified policy frameworks can enhance attractiveness to investors.

Ultimately, cleaner fuels like natural gas remain vital in the short to medium term, with initiatives already underway in Mozambique. Investments should aim at fostering a diverse, low-emission energy economy to ensure inclusive growth and global benefits.