$40B Africa Energy Fund Targets Universal Access – What it Means for Clean Cooking
A new $40 billion Africa Energy Fund, launched at the Mission 300 Africa Energy Summit in Dar es Salaam, aims to provide 300 million people with access to cleaner, more reliable energy by 2030. The initiative aligns with Africa's broader push for sustainable energy solutions, including clean cooking technologies, which remain one of the most critical yet underfunded sectors in the energy transition. As African Energy Week (AEW): Invest in African Energies 2025 approaches, discussions on scaling investment in clean cooking solutions will be high on the agenda, particularly in light of the commitments made by African nations to advance energy access.
Access to clean cooking solutions remains one of Africa's most pressing energy challenges. Over 900 million people on the continent still rely on traditional biomass, such as wood and charcoal, for cooking. The health, environmental and economic consequences are severe – household air pollution from these fuels contributes to over 600,000 premature deaths annually, while deforestation and carbon emissions continue to rise. While electrification projects are a major focus of Africa's energy transition, clean cooking remains an urgent issue that requires targeted investment and policy support.
The Fund is a step in the right direction and demonstrates global commitment to accelerating energy access and supporting Africa's transition to cleaner, more sustainable energy solutions. The World Bank has pledged $22 billion to support the initiative, while the African Development Bank has committed $18.2 billion. Additional contributions include $2.65 billion from the Islamic Development Bank and $1 billion from the OPEC Fund, highlighting strong financial backing from major international institutions.
Several African countries have demonstrated strong commitments to expanding clean cooking access through national policies, targeted financing mechanisms and public-private partnerships. Kenya, seeking universal access by 2028, is advancing LPG expansion, electric cooking and bioethanol alternatives with support from private sector investment and international partnerships. By subsidizing LPG and investing in infrastructure, the country has significantly increased adoption rates. Neighboring Tanzania is integrating clean cooking solutions into its national electrification plan and broader energy transition strategy, supported by a dedicated National Clean Cooking Strategy. Meanwhile, Ghana has adopted a multi-pronged approach, enhancing the affordability of LPG and promoting efficient biomass stoves. The country is also raising public awareness of the health benefits of clean cooking, while encouraging local manufacturing of stoves and fuel alternatives.
The newly-launched energy fund not only works to expand electricity access, but also to catalyze economic opportunities by powering industries, businesses and households. Reliable energy is a fundamental enabler of economic growth, and investments in clean cooking align with broader energy access goals by reducing health costs, increasing productivity and improving gender equality. AEW: Invest in African Energies 2025 – the leading energy event for deal-making, policy discussions and industry networking – provides a crucial platform for stakeholders to explore investment opportunities in clean cooking and broader energy access initiatives.
Discussions will focus on mobilizing financing for clean cooking projects, including public-private partnerships and carbon credit mechanisms; strategies for integrating clean cooking into national electrification plans; and best practices from leading African countries and how their policies can be replicated across the continent. Discussions will also focus on scaling up investment in clean energy infrastructure, including off-grid electrification and innovative financing mechanisms for clean cooking technologies.
With the launch of the Africa Energy Fund and growing momentum around clean cooking investments, Africa stands at a pivotal moment in its energy transition. Achieving universal energy access requires a multi-faceted approach that includes large-scale electrification projects, off-grid solutions and immediate interventions in clean cooking. AEW 2025 provides an opportunity for governments, businesses and investors to align their strategies and secure funding to drive impact. The commitment to connecting 300 million Africans to cleaner energy is ambitious, but with the right policies and investments, it is within reach – and clean cooking solutions must be a central part of the conversation.
AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
Distributed by APO Group on behalf of African Energy Chamber.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
African Energy Week (AEW) 2025 African Energy General Counsel Forum to Spotlight Strategic Legal Leadership, Dealmaking and Doing Business in African Oil & Gas
The African Energy Week (AEW): Invest in African Energies conference – taking place from September 29 to October 3 in Cape Town – will host a groundbreaking African Energy General Counsel Forum, aimed at tackling challenges and opportunities surrounding doing business in Africa. The Forum will become a cornerstone event for legal leaders operating at the intersection of Africa's fast-evolving oil and gas sector, with conversations expected around corporate governance, digital transformation, the integration of Artificial Intelligence (AI) and the expanding influence of general counsel in African oil and gas. As global energy dynamics experience a significant shift, with pressure to transition to renewable energy and the introduction of machine-learning technology, Africa stands at a pivotal moment. New discoveries across the continent – in conjunction with heightened opposition from environment groups – have impacted oil and gas transactions. As such, both in-house and external counsel have taken on a more strategic role. The AEW: Invest in African Energies 2025 African Energy General Counsel Forum steps into this picture to tackle pressing questions faced by African oil and gas markets. These include how the role of general counsel is evolving in Africa; what are companies doing to navigate shifting energy dynamics while promoting growth in their departments; how are in-house teams developing highly effective relationships with external counsel; and how are both in-house and external counsel supporting firms to deliver value in oil and gas transactions. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Africa's oil and gas sector is experiencing rapid growth, with discoveries made in Namibia, Ivory Coast, Gabon and more opening-up new hydrocarbon provinces. In tandem, established producers such as Angola, Libya, Nigeria and the Republic of Congo are advancing billion-dollar projects, striving to bolster production and value addition. Downstream, infrastructure projects such as the East African Crude Oil Pipeline in Uganda, the Lobito Refinery in Angola and the Nigeria-Morocco Gas Pipeline offers new export and domestic distribution opportunities, signaling a shift in oil and gas trade in Africa. Given these developments, the continent's M&A activity showed a 73% increase in the first quarter of 2024 compared to the previous year, reaching $12.7 billion by July. Yet, amid this growth, the continent continues to face fierce opposition by environmental groups, with other challenges such as regulatory bottlenecks, access to financing and legal disputes impacting projects. The rise of AI and digital tools has also presented implications for the industry – both positive, with the opportunity to improve efficiency and reduce emissions, as well as negative, with access to technology and capacity challenges. In an environment marked by shifting energy and investment dynamics, the role of in-house and general counsel has never been more central. African counsel has an evolving role to play in supporting transactions, as they take on a more prominent role as a strategic advisor for the industry. As legal departments evolve, so do the expectations of their leadership. Legal leaders are being called upon to anticipate geopolitical and regulatory risks, shape ESG strategies and influence boardroom decisions that guide billion-dollar investments. The African Energy General Counsel Forum will address the most pressing legal dynamics shaping Africa's oil and gas industry. These include navigating local regulatory frameworks, managing cross-border transactions, resolving upstream disputes and working effectively with local counsel. The Forum will also examine what energy companies expect from in-house teams as they strive to mitigate legal risk and drive business value. For legal professionals, investors and executives alike, the Forum offers a critical platform to align legal infrastructure with Africa's ambitious oil and gas vision. As the continent pursues greater production, lower emissions and broader participation, the African Energy General Counsel Forum will be a strategic platform to place African counsel, AI and governance at the center of the race to make energy poverty history by 2030. 'Today's general counsel in Africa's oil and gas sector is not just a legal gatekeeper - they are a strategic catalyst for investment, compliance and growth. As the sector expands across new frontiers, legal leaders must step into roles that shape investor confidence, navigate regulatory complexity and harness emerging technologies like AI to unlock value across the energy value chain,' stated NJ Ayuk, Executive Chairman of the African Energy Chamber. Distributed by APO Group on behalf of African Energy Chamber.
Arabian Post
a day ago
- Arabian Post
Middle East Debt Surges as External Influence Deepens
The debt burden across the Middle East and North Africa has escalated markedly over the last decade, with many governments relying heavily on borrowing to sustain public spending amid economic challenges. This growing fiscal strain, combined with an increasing dependence on external donor funding, has amplified the influence of foreign actors on both domestic policies and regional geopolitics, raising concerns about the long-term economic sovereignty of these states. State borrowing in the MENA region has expanded substantially due to a combination of declining oil revenues, rising public expenditures, and the economic fallout from global disruptions. Countries that historically relied on hydrocarbon wealth to finance budgets have faced persistent pressures to diversify revenue sources, but with uneven success. The persistence of conflict, political instability, and the lingering impacts of the COVID-19 pandemic have exacerbated fiscal deficits, pushing governments to turn to international lenders and multilateral institutions more frequently. The Gulf Cooperation Council members, traditionally seen as relatively debt-resilient, have witnessed a gradual uptick in sovereign borrowing. For instance, Saudi Arabia and the United Arab Emirates have issued substantial sovereign bonds in international markets to fund large infrastructure projects under their economic diversification agendas. Nonetheless, their debt-to-GDP ratios remain relatively contained compared to other MENA nations. Meanwhile, countries like Egypt, Jordan, and Lebanon have accumulated debt at levels that alarm economists and credit rating agencies. Egypt's public debt has exceeded 90% of GDP, while Lebanon remains mired in a sovereign debt crisis, with its economy contracting sharply and international lenders demanding stringent reforms. ADVERTISEMENT The rise in borrowing often comes with conditions attached by international creditors, including the International Monetary Fund and World Bank, as well as bilateral donors such as the European Union, the United States, and Gulf allies. These conditions frequently mandate structural reforms, austerity measures, and adjustments in subsidy programmes that affect large segments of the population. Such fiscal tightening has stirred public discontent and occasionally sparked protests, underscoring the delicate balance governments must strike between fiscal responsibility and social stability. The reliance on donor funding has widened the scope for foreign influence in national decision-making. Some nations find themselves aligning their foreign policies to appease key donors, ensuring continued financial assistance. This alignment manifests in diplomatic stances, regional alliances, and participation in international coalitions, sometimes at odds with local priorities or public opinion. For example, the strategic partnerships between Gulf states and Western powers have intensified, with financial aid often linked to military cooperation or counterterrorism initiatives. Beyond geopolitics, the conditionality of donor funding can limit the policy options available to governments, constraining economic strategies and reform agendas. This external pressure has raised questions about sovereignty and the capacity of states to chart independent development paths. Economists warn that a cycle of debt dependence could undermine the very economic growth that these countries seek, trapping them in a cycle of borrowing and reform fatigue. The structural challenges that fuel debt accumulation in MENA are multifaceted. Demographic pressures, with a large youth population entering the job market, heighten the demand for public services and employment opportunities. However, the private sector remains underdeveloped in many countries, unable to absorb the expanding labour force or generate sufficient revenue to alleviate public finances. High unemployment rates and income disparities compound the strain on state budgets, forcing governments to maintain subsidies on essentials such as fuel, electricity, and food, which constitute significant fiscal burdens. Energy transition trends and volatile global markets further complicate the fiscal landscape. The drive towards renewable energy and reduced reliance on fossil fuels threatens to erode the traditional income bases of hydrocarbon-exporting countries. While some Gulf states have embraced ambitious clean energy projects and economic diversification, the transition carries upfront costs that add to borrowing needs. Non-GCC nations that rely on oil and gas revenues for budgetary support face more acute vulnerabilities, with fluctuating commodity prices directly impacting their fiscal stability. ADVERTISEMENT Policy experts advocate for enhanced fiscal reforms focused on broadening the tax base, improving public financial management, and fostering private sector growth. Greater regional cooperation on debt restructuring and coordinated economic policies could also alleviate pressures. Yet, political instability and entrenched governance challenges hamper implementation efforts in several countries. Transparency and accountability deficits remain a significant obstacle to efficient debt management and the effective use of external funds. International financial institutions have called for a balanced approach to lending and aid, one that supports immediate fiscal needs while promoting sustainable development. This includes encouraging greater domestic resource mobilisation and reducing reliance on donor funding in the medium term. Failure to address these issues risks escalating debt distress and diminished policy autonomy, with potentially destabilising repercussions for the entire region.
Arabian Post
a day ago
- Arabian Post
Unregulated Gold Rush Poses Existential Risk to Ghana's Mining Future
Ghana's gold reserves have surged to 31.37 tonnes in 2025, reaffirming its position as Africa's leading gold producer. However, this growth is shadowed by a significant rise in artisanal and small-scale mining , which now accounts for nearly 40% of national output. The proliferation of unlicensed operations is raising alarms over environmental degradation, regulatory challenges, and the long-term sustainability of the country's mining sector. The Ghana Chamber of Mines projects a 6.25% increase in gold production, reaching 5.1 million ounces this year. This uptick is driven by both large-scale projects, such as Newmont's Ahafo South and Shandong's Namdini mines, and a notable expansion in ASM activities. Despite contributing significantly to gold output, an estimated 70–80% of ASM operations remain unlicensed, complicating efforts to regulate the sector and mitigate its environmental impact. The environmental consequences of unregulated ASM are evident. In Senegal, similar practices have led to mercury contamination in the Faleme River, prompting a suspension of mining activities along its banks until 2027. In Ghana, the use of mercury and other hazardous chemicals in ASM poses serious risks to both ecosystems and public health. ADVERTISEMENT To address these challenges, the Ghanaian government has established the GoldBod initiative, aiming to streamline small-scale gold purchases and combat smuggling. The removal of withholding taxes has also been implemented to reduce illegal trade. However, enforcement remains a significant hurdle, with many ASM operations continuing outside the legal framework. The rise in ASM is not unique to Ghana. Across Africa, artisanal mining supports the livelihoods of millions but often operates in legal grey areas. In the Democratic Republic of Congo, for instance, ASM is a major component of the mining industry, yet it frequently involves child labor and unsafe working conditions. Efforts to formalize the sector have been inconsistent, leading to ongoing concerns about human rights and environmental sustainability. The World Bank has introduced a new framework to promote sustainable and inclusive ASM practices. This approach emphasizes the professionalization of artisanal miners, urging governments to implement regulatory measures that ensure environmental stewardship and social well-being. By fostering partnerships among governments, multilateral institutions, and civil society, the framework seeks to integrate ASM into the formal economy, enhancing transparency and accountability. Technological advancements offer potential solutions for sustainable mining. In Zimbabwe, the introduction of biological oxidation techniques has reduced pollution by 20%, minimizing the use of harmful chemicals like mercury and cyanide. Similarly, the adoption of renewable energy sources, such as solar and wind power, is transforming mining operations across Africa, reducing carbon footprints and operational costs. Despite these initiatives, the path to sustainable mining in Ghana remains fraught with challenges. The informal nature of ASM, coupled with limited access to financing and equipment, hampers efforts to improve efficiency and safety. Moreover, the lack of clear property rights and tenure security often leads to conflicts between artisanal miners and large-scale mining companies. To mitigate these issues, experts advocate for comprehensive reforms that include simplifying licensing processes, providing technical training, and ensuring fair market access for artisanal miners. By integrating ASM into the formal economy, Ghana can enhance regulatory compliance, protect the environment, and promote equitable economic growth.
