Africa’s transformation crucial to global energy growth

Africa stands at the cusp of a transformative era, with the potential to reshape its economies and harness abundant mineral resources for global energy growth. Samiala Zubairu, President of the Africa Finance Corporation, emphasized the need for Africa to shift from raw material exports to processing, in a conversation with CNBC Africa’s Kenneth Igbomor at the Afreximbank annual meetings in the Bahamas. Zubairu underscored the critical role of financial institutions in driving this economic evolution. Africa boasts a wealth of renewable energy potential, including over 10,000 gigawatts of solar power, 110 gigawatts of wind power, 350 gigawatts of hydro power, 15 gigawatts of geothermal power, and 400 gigawatts of gas thermal power. This vast energy capacity positions the continent to process its substantial reserves of minerals and metals, such as cobalt, bauxite, copper, and more. By focusing on beneficiation and value addition within Africa, the continent can play a pivotal role in the global energy landscape. Zubairu emphasized the importance of indigenous financial institutions in driving Africa's industrialization journey. Drawing lessons from successful economic transformations globally, he highlighted the need for deliberate government policies that support the growth of robust financial institutions. By nurturing institutions like the Africa Finance Corporation, with its current $12.5 billion portfolio, Africa can pave the way for accelerated economic growth and development. The Africa Finance Corporation envisions a future where its $12.5 billion portfolio expands tenfold to $125 billion, reflecting the continent's untapped potential. Similarly, institutions like Afreximbank and the African Development Bank (AfDB) are poised to scale up significantly to support Africa's economic ambitions. With Africa's potential far exceeding current institutional capacities, there is a clear imperative to bolster financial institutions to drive sustainable and inclusive growth. As Africa charts its course towards economic transformation, it is imperative to learn from successful models of industrialization. By prioritizing the development of strong financial institutions, Africa can position itself as a key player in the global economy. The shift from raw material export to processing represents a strategic move towards value addition and economic empowerment. With a wealth of natural resources and renewable energy potential at its disposal, Africa is poised to harness its latent strengths to drive global energy growth and industrial development. In conclusion, Africa’s economic transformation holds immense promise for the continent and the global energy landscape. By leveraging its abundant resources, nurturing indigenous financial institutions, and prioritizing value addition, Africa can carve out a distinctive role in the global economy. As Samiala Zubairu aptly stated, 'There is no net zero without Africa.' The time is ripe for Africa to seize its potential and lead the way towards a sustainable and prosperous future.