IEA on amplifying Africa's role in the global hydrogen market

In a special CNBC Africa coverage from Namibia, Rita Madeira, the Africa Program Manager for the International Energy Agency, sat down with Palesa Mofokeng at the inaugural Global African Hydrogen Summit in Windhoek to discuss the continent's clean energy transition strategy and energy access ambitions. Madeira highlighted the importance of the event and the opportunity it presents in aligning with the IEA's objectives. She mentioned that the agency will be presenting key findings of a report on renewable energy opportunities for Mauritania and is working on a similar report with the government of Namibia. Madeira emphasized the significance of the discussions on supply and demand in the energy sector. When asked about the agency's total energy investment in Africa, Madeira estimated that government spending on the energy sector in the continent would be around $110 billion in 2024. However, to meet climate and energy goals, she stressed that roughly $200 billion per year would need to be invested until the end of the decade. She pointed out that current energy investments in Africa only account for 1.2% of the continent's GDP, with clean energy investment making up just 2% of global clean energy investment. Moving on to challenges in financing energy projects, Madeira highlighted the high cost of capital in emerging markets and developing economies, which can be two to three times higher than in advanced economies. She emphasized the need to lower the cost of capital through policy interventions, targeted concessional finance, and appropriate risk pricing to accelerate infrastructure and energy investments. Madeira also addressed the high debt burden of many countries in Africa and the limited fiscal space as challenges to energy projects. On the opportunities front, she noted that renewable energy and grid infrastructure were key sectors for investment in Africa. Madeira mentioned that an estimated $25 billion annually would be needed for the continent to achieve universal energy access by 2030. Speaking about collaborations to support Namibia's sustainable energy goals, Madeira emphasized the importance of partnerships and economic diplomacy. She commended Namibia's efforts in building relationships with stakeholders like the European Union, Germany, Belgium, and Japan. Madeira highlighted Namibia's clear vision for sustainable energy and the strategic placing of partnerships in their strategy. Looking ahead to COP29, Madeira expressed optimism following the achievements of COP28, which laid out a roadmap towards achieving net zero in the global energy sector by 2050. She stressed the importance of continuing the implementation of the UAE consensus, including increasing renewable energy, energy efficiency, reducing methane emissions, and transitioning away from fossil fuels. Madeira stated that key enablers such as finance, technologies, and capacity building would be critical in achieving these goals, with the IEA ready to support the COP presidents in their efforts.