Tom Alweendo, Namibia’s Minister of Mines and Energy, has called for increased investment in Africa’s energy sector. Speaking at the 2024 Africa Energy Week in Cape Town this October, Alweendo urged international stakeholders and partners to prioritise funding and policy support to address the continent’s energy challenges.

“Africa’s vast natural resources place us in an advantageous position, not only to decisively deal with energy poverty, but also to play a critical role in global energy markets,” Alweendo explained.

Read also: Osinbajo advocates for human investment over technology in Africa’s climate crisis

Harnessing Africa’s Renewable Energy Potential

Alweendo underscored the immense potential of renewable energy in Africa, particularly in green hydrogen, solar, and wind power. He emphasised that sub-Saharan Africa alone has the capacity to attract billions in renewable energy investments, given its abundant natural resources and favourable environmental conditions.

While acknowledging that Africa plays a significant role in global fossil fuel markets, Alweendo pointed out that the continent holds 7 percent of the world’s oil reserves and 7.5 percent of its natural gas reserves. However, he also stressed that Africa’s petroleum and natural gas assets should be viewed as transitional fuels in the journey towards more sustainable energy sources.

Barriers to Investment: Policy and Infrastructure Gaps

Despite the continent’s resource wealth, Alweendo warned that Africa’s development is being hindered by insufficient investment in energy infrastructure. He pointed to weak policy frameworks and the lack of fiscal incentives in many African countries as key obstacles.

“To attract more investment, we need to have policies that are creative enough to incentivise the required investments. Unlike the global north that is able to provide fiscal incentives, we are unfortunately not able to do the same,” Alweendo stated.

“The global north is cajoling Africa into embracing the energy transition, as if one can simply flip a switch. They are even discouraging investment in natural gas, which is found in abundance on the continent,” Namibia’s energy minister said.

Read also: Visa backs African fintech startups OkHi, Oze, Orda and Workpay with $1 billion

Energy access is fundamental to the continent’s growth, yet according to the International Renewable Energy Agency (IREA), three-quarters of Africa’s population still lacks reliable access to electricity, despite the continent’s wealth of renewable resources.

This assertion confirms the global reality as Africa is at a critical crossroads in its development. Energy is fundamental to the continent’s growth, yet according to the International Renewable Energy Agency (IREA), three-quarters of Africa’s population still lacks reliable access to electricity, despite the continent’s wealth of renewable resources.

The region has received less than two percent of worldwide investments in renewable energy during the past two decades, exacerbating the situation due to inadequate investment.