Latest news with #AllianceforGreenInfrastructureinAfrica
Morocco World
13 hours ago
- Business
- Morocco World
Africa Energy Forum Opens in Cape Town with Bold Call for Continental Unity
Cape Town — The 27th Africa Energy Forum (AEF) launched today with a powerful message of unity and urgency, as continental leaders declared that Africa's energy crisis requires immediate action and unprecedented cooperation to address the needs of 600 million people living without electricity. Amadou Hott, former Special Envoy of the President of the African Development Bank for the Alliance for Green Infrastructure in Africa, delivered a keynote that crystallized the forum's central theme. 'Energy is everything. Without abundant, reliable, affordable, and sustainable energy, we have no transformation,' he said. Amadou Hott, former Special Envoy of the President of the African Development Bank for the Alliance for Green Infrastructure in Africa Hott spoke of energy's significance in building Africa's future, asserting: 'Actually, we have no future without energy.' Continental integration as solution Hott outlined an ambitious vision for African energy integration, calling for practical economic unity across the continent. 'Picture this reality: A hydroelectric dam in Kinshasa powers factories in Lusaka. Natural gas from Nigeria's river states fuelling industries in Douala,' he said, pointing out that investors 'pursue scale, stability and simplicity' that only a united Africa can deliver. The financial challenge is staggering. Africa needs '$250 billion annually by 2030 to meet energy demand,' Hott detailed, with the electricity sector alone requiring '$120 billion annually,' yet the continent receives only 3% of global energy investments despite housing 20% of the world's population. Lerato Mataboge, African Union Commissioner for Infrastructure & Energy, reinforced the urgency of the crisis. '600 million Africans are currently left without access to electricity,' she said, warning that 'at the current pace of development, 570 million people will still be without access to electricity by 2030.' Lerato Mataboge, African Union Commissioner for Infrastructure & Energy The human cost extends beyond darkness. Mataboge revealed that 'about 600 thousand women and children die each year in Africa due to inefficient utilisation of biomass,' making energy provision 'a human rights issue' in the African continent. Political will and private partnership South Africa's Minister of Electricity and Energy, Kgosientsho Ramokgopa, framed the challenge in stark terms: 'Electricity is not a luxury. It is a fundamental and basic human right. It is the oxygen of economic activity, the lifeblood of industrialization.' Through the Mission 300 initiative, endorsed by the African Union, the continent aims to 'electrify 300 million Africans by 2030.' Ramokgopa recalled that this is 'not a pipeline, it is a political decision,' requiring just '$25 billion per year, equating to less than 1% of global energy investments.' Kgosientsho Ramokgopa, South Africa's Minister of Electricity and Energy Private sector leader Goran Rajsic of SUN Africa brought a developer's perspective, arguing that 'Africa needs electricity yesterday.' His company is building 400 megawatts of solar capacity in Angola while advocating for a government-owned, contractor-operated model that ensures 'infrastructure must remain sovereign.' Path forward The forum will continue through June 20, with leaders recalling that fragmented thinking must give way to integrated, continental solutions. As Hott concluded: 'Let's move decisively from PowerPoint to power plants, from intentions to connections, from fragmented markets to one united, electrified, and economically empowered Africa.' Tags: Africa Energy ForumAfrica Energy Forum (AEF)Energy in Africa
Zawya
19-02-2025
- Business
- Zawya
For a successful integration, Africa needs an operating system update (By Amadou Hott)
By Amadou Hott, Senegal's official nominee for the position of President of the African Development Bank, Former Minister of Economy and planning, Senegal ( Ask any traveler about their experience moving across parts of Africa, and you will likely hear about familiar challenges: high costs, indirect routes, and unpredictable schedules that can make even the simplest journeys more complicated and costly. These travel hurdles highlight the immense opportunity to further strengthen Africa's integration and unlock seamless connectivity across the continent. The potential is undeniable. According to the World Bank, the African Continental Free Trade Area (AfCFTA) stands to be the world's largest free trade zone, encompassing 1.4 billion people and a combined GDP of 3.4 trillion USD. The African Development Bank projects that eliminating existing barriers could double intra-African trade within a decade from its current 15%; a figure that pales in comparison to Asia's 60% and Europe's 65%. Despite meaningful progress through the AfCFTA implementation led by regional economic communities, fulfilling this promise will require more efforts. Namely, Africa requires robust physical infrastructure and an operating system update to modernize institutional frameworks and encourage a new ecosystem of African-made goods and services. Africa's integration challenge can be likened to building a cutting-edge computer system. Success first requires powerful hardware: the physical infrastructure forming the backbone. Currently, the continent faces an annual infrastructure financing gap between 130 and 170 billion USD to meet essential hardware requirements across transportation corridors, energy networks, and digital highways. While our international partners have historically played a crucial role In bridging this financing gap, the current geopolitical landscape demands a paradigm shift. Africa must take the lead in investing in its own hardware. The key lies in mobilizing African public and private capital first to build confidence among international partners and investors. Substantial capital can be generated within the continent through sovereign wealth funds, pension funds, high-net-worth individuals, and other sources. Development finance institutions like the African Development Bank must also play a transformative role by leveraging their expertise and credit ratings to channel this locally sourced capital into Africa's development. The Alliance for Green Infrastructure in Africa (AGIA), launched by the African Development Bank in partnership with Africa50 and the African Union, exemplifies this approach, mobilizing project preparation and project development blended capital to build a 10 billion USD portfolio of green infrastructure projects with private sector participation from Africa and around the world. Regional energy integration, as highlighted by Mission 300 launched recently in Tanzania, is equally important. Beyond physical infrastructure, Africa's integration requires modern software upgrades: the systems, policies, and institutional frameworks that power trade across borders. Digital solutions are key to enhancing business operations across borders and reducing trade barriers. While discussions often focus on physical infrastructure gaps, outdated manual processes frequently limit the effectiveness of existing assets. The Pan-African Payment and Settlement System (PAPSS) exemplifies this transformation, promising to save 5 billion USD annually by making cross-border payments simpler and more transparent. Moreover, pilot programs in East Africa have shown that applying blockchain technology to existing value chains could help reduce trade costs by 20%, enhance protection against fraud, and expand access to new markets for businesses across the continent. As African leaders convene at the AU Summit in Addis, we are at a pivotal time that requires action : the finalization of the Protocol on Digital Trade under the AfCFTA is a first step towards the bold transformation that we must operate. We must pursue economic transformation through infrastructure development and technology integration in our trade operations to evolve from a raw material exporter into an industrial and agricultural powerhouse. Beyond manufacturing value-added goods and value creation, our ability to integrate essential services -financial services, transport and logistics, education, and healthcare- will facilitate seamless business operations across borders. By positioning economic transformation at the heart of our integration agenda, Africa can advance up the value chain to generate wealth and create quality economic opportunities for all Africans, particularly our youth and women. With Africa's youth population set to double by 2050, the urgency of this transformation cannot be overstated. By effectively mobilizing our own resources first, driving economic transformation, and building both the required software and hardware, we can successfully integrate Africa. This is Africa's moment to move beyond being the world's largest free trade area by membership to becoming its most dynamic and innovative economic powerhouse. Distributed by APO Group on behalf of Amadou Hott, Candidate for the Presidency of the African Development Bank Group.
