Expanding energy access to drive growth of African economies

Global spending in emerging markets for clean energy is projected to reach two trillion US dollars by the end of 2024, with investments in power taking the lead for investors. However, African countries have only attracted a mere 3 per cent of this funding, highlighting a significant financing gap for the continent. To shed light on how African countries can scale-up investments in clean energy, CNBC Africa's Aby Agina interviewed Georgia Iordanescu, an Energy Expert. The conversation revolved around the importance of energy transition and the challenges and opportunities it presents for the continent. Iordanescu emphasized that energy transition is vital as it enables various sectors such as healthcare, education, job creation, and economic growth. She stressed the need to mobilize technical and financial resources to achieve clean energy goals in markets that need it the most. The discussion also touched upon breakthrough technologies in Africa, such as green hydrogen production and battery storage, highlighting the continent's progress in adopting cleaner sources of energy. Despite advancements in technology, Iordanescu noted that consumer behavior and affordability play crucial roles in shaping the energy sector. The conversation further delved into the financing of the energy transition, pointing out the challenges faced by emerging markets, including Africa. While global spending on clean energy technologies is on the rise, investment flows to emerging economies remain inadequate. Africa lags behind, accounting for less than three percent of clean energy spending. Iordanescu highlighted the need for strong policies, infrastructure upgrades, and bankable projects to attract investors. Concessional financing and donor support were identified as crucial in bridging the financing gap and de-risking capital for the sector. In concluding thoughts, Iordanescu expressed optimism about the energy transition in Africa, emphasizing the ongoing efforts by various organizations to expand access to electricity on the continent. She underscored the importance of partnerships and initiatives in halving the number of Africans currently living without electricity. The journey towards clean energy in Africa continues, fueled by collaboration, innovation, and commitment to a sustainable future.