AfricaNews

Public-Private Dialogue to Explore Ways of Spurring Investment in Africa’s Energy Sector

A high-level dialogue is set to bring officials from private and public sectors together in Addis Ababa to discuss ways to accelerate private investment in electricity and infrastructure development in Africa.

The Economic Commission for Africa (ECA) in collaboration with RES4Africa Foundation organized the three day discussion on private investment, starting from March 28, 2023.

Africa needs to increase investment on electricity infrastructures, from generation to networks and off-grid systems, in order to meet both regional and global targets of providing universal access to energy for all by 2030.

The IEA Africa Energy Outlook 2022 estimates achieving these goals would require annual investments of 30 billion US Dollars until 2030, of which around two-thirds are needed in sub-Saharan Africa.

Pivotal to increase investment, the ECA says, is the design and implementation of policy and regulatory frameworks able to crowd-in private investments.

“It is essential to address policy and regulatory barriers to investments, and contribute towards financing sustainable infrastructure development to meet the goals,” it added.

The high level Dialogue will gather private and public stakeholders to discuss policy and regulatory experiences in Africa and the pathway to accelerate private sector investment in infrastructure development.

The participants are also expected to discuss on how to advance the electricity sector reform agenda to ensure adequate investment flows towards the sector.

Africa is home to 60% of the best solar resources worldwide, but it currently holds only 1% of solar PV capacity, as per IEA report.

In addition, More than 5 000 billion cubic metres (bcm) of natural gas resources discovered to date in Africa have not yet been approved for development.