Restrategising Africa's energy transition agenda

Africa's energy landscape is at a pivotal moment, with the continent presenting both challenges and opportunities in the transition to cleaner energy sources. In a recent interview with CNBC Africa, Alex Irune, the CEO of Oando Clean Energy, emphasized the importance of accelerating Africa's development of fossil fuels to drive a robust balance sheet that can support the transition to cleaner energy. Despite Africa's vast resources, Irune noted that the current cost and form of transition cannot be the top priority for the continent. The conversation covered a range of topics, including the role of Oando in intra-Africa trade, the company's expansion into renewable energy projects, and the critical need for government policies to support the green energy sector. Irune highlighted Oando's pan-African footprint, spanning over 30 years of trading across various countries on the continent. Starting as a downstream company, Oando evolved into a midstream and upstream player, deepening relationships and expanding its reach. The company's focus on renewable energy through Oando Clean Energy aims to de-risk projects and make them bankable, despite the current low profitability of clean energy ventures. Discussing the challenges of scaling the green energy business in Africa, Irune emphasized the need to prioritize lifting people out of poverty and building essential infrastructure using fossil fuels, particularly gas. While acknowledging the importance of transitioning to cleaner energy sources, he emphasized that Africa's primary focus should be on ensuring the well-being of its people. When it comes to navigating political and regulatory risks in African markets, Irune credited Oando's resilience and determination. He underscored the vast opportunities that Africa presents in terms of natural resources and highlighted the continent's crucial role in the global energy transition. Irune called on governments to implement supportive policies to accelerate the shift to cleaner energy, citing examples like Nigeria's net zero targets and initiatives like transitioning mass transit to electric vehicles in Lagos State. In conclusion, the interview with Alex Irune shed light on the complexities and possibilities within Africa's energy transition agenda. While the continent faces challenges in terms of political risks, regulatory hurdles, and the profitability of clean energy ventures, there is also immense potential for growth and innovation. Africa's journey towards a cleaner, more sustainable energy future will require a concerted effort from both the public and private sectors, with a focus on balancing economic development with environmental responsibility.