How Africa can take advantage of its renewable energy potential

Conversations around energy, agriculture, and human settlement have taken center stage at this year’s African Climate Week in Accra, Ghana. Yusuf Suleiman, the CEO of Blue Camel Energy, joined CNBC Africa to shed light on how Africa can take advantage of its renewable energy potential. The African Development Bank (AfDB) has highlighted the urgent need to address the energy crisis in Africa, particularly in West Africa and Nigeria. Suleiman emphasized that the lack of access to reliable power has significantly hindered industrialization processes across the continent, impacting businesses of all sizes, from small enterprises to larger factories and agricultural operations. He expressed optimism about the potential for transformative change through investments in renewable energy. The World Bank and AfDB have pledged a substantial investment of $45 billion in African climate finance by 2025. These funds are earmarked for increasing investments in renewable energy projects, such as solar power plants. Suleiman commended the commitment to renewable energy but also pointed out the challenges hindering progress in this sector. One major obstacle highlighted by Suleiman is the need for a functional credit system to support investments in renewable energy. He stressed that access to affordable credit is crucial for investors looking to venture into the solar energy market. The current high cost of finance in Nigeria and other African countries poses a significant barrier to the development of the renewable energy sector. Suleiman emphasized the importance of establishing a robust framework to support the growth of renewable energy in Africa. This framework should address key areas such as capacity building for installation and maintenance, setting standards for equipment, and creating a conducive financial structure that guarantees returns on investment. Without these essential components in place, the sector is likely to face serious challenges. In addition to the need for a supportive framework, Suleiman highlighted the importance of government policies that promote the growth of the renewable energy sector. He stressed the necessity of a cost-reflective tariff system to ensure that the value of electricity is understood and that investors can operate profitably in the market. Suleiman urged the government to address subsidy issues and take decisive actions to support the renewable energy industry. Despite the challenges facing the renewable energy sector in Africa, Suleiman remains hopeful about the potential for growth and impact on the continent. He called for concerted efforts from both the public and private sectors to overcome obstacles and unlock the vast renewable energy potential in Africa. By addressing key issues such as access to affordable credit, capacity building, and policy reform, Africa can position itself as a leader in renewable energy innovation and sustainability.