The future of energy & materials in Africa

Africa, despite its rich energy resources, has historically attracted a small percentage of global energy investments due to various domestic challenges. However, as nations on the continent become more conducive to investments, a massive pool of opportunities is emerging rapidly. CNBC Africa recently spoke with Roberto Bocca, Head of Shaping the Future of Energy and Materials at the World Economic Forum (WEF), to gain key insights into the discussions surrounding Africa at Davos this year. Bocca emphasized that Africa is not just the future of opportunity but also the present, with significant demand and supply anticipated from the continent. The supply discussed here pertains not only to fossil fuels but also to the minerals and materials crucial for a cleaner energy future, coupled with Africa's natural endowment in solar and wind energy. A pivotal point of discussion during the interview was around enabling Africa to engage in a more equitable manner in the global energy transition. Bocca highlighted the importance of ensuring that the energy transition is secure, sustainable, affordable, and just. He emphasized the need for Africa to not only extract materials but also process them domestically to ensure a greater share of the dividends remains within the continent. This integration into new supply chains is crucial for Africa's economic development. The WEF is actively involved in mobilizing investments for clean energy in emerging economies, notably in Africa, to address the existing gaps in capital and high costs of investment. By bringing together companies and experts, the forum aims to de-risk investments in these regions, making them more attractive to investors. The objective is to facilitate a flow of investments that will support Africa's transition to cleaner and more sustainable energy sources. Challenges discussed at the WEF included the competitive landscape among countries vying for critical roles in the global supply chain for cleaner technologies. These challenges are compounded by the perception of higher risks associated with investing in emerging economies. The need for increased investment in clean technologies in African and other emerging economies was underscored, with estimates suggesting a seven-fold increase in investments required for the sector to flourish. In terms of policy, a key aspect highlighted by Bocca was the necessity for African countries to have clear and conducive policies that attract investments. He emphasized the importance of clarity, speed, and efficiency in permitting processes to facilitate infrastructure development for energy projects. Clarity in policies and roadmaps, along with a business-friendly environment, are essential to ensure sustainable and profitable energy investments on the continent. While Bocca did not delve into specific conversations with African leaders at WEF regarding policy changes, he stressed the universal significance of clear policies for attracting investments, not just in Africa but globally. Creating an environment that is transparent, efficient, and supportive of investments is crucial for unlocking Africa's energy potential and driving growth and development on the continent. With the spotlight on Africa's energy future, it is evident that concerted efforts are required to address the challenges and leverage the opportunities presented by the continent's abundant resources. By fostering partnerships, mobilizing investments, and advocating for policy clarity, Africa can position itself as a key player in the global energy landscape, driving sustainable development and economic growth across the region.