AEW26: Africa must lead its own energy transition and industrialisation agenda

Africa will require an estimated $2.9 trillion in energy investment by 2050 if it is to meet growing demand and achieve its industrialisation ambitions, said Damilola Ogunbiyi, CEO of Sustainable Energy for All, as she addressed delegates at this morning’s opening ceremony of the Africa Energy Forum in Cape Town. 

Ogunbiyi noted that despite Africa’s huge investment needs, sub-Saharan Africa has received only 2 per cent of global clean energy investments over the past 20 years. 

“To bridge this financing gap, there’s an urgent need for African countries to embrace innovation and disruption in their financial strategy,” added Ogunbiyi. “Domestic institutional investors, such as African pension funds, sovereign wealth funds, domestic commercial banks, and national development banks are critical.”

She said the challenge comes at a time when Africa's population is projected to grow from 1.5 billion people today to 2.5 billion by 2050, while energy demand is expected to triple over the next two decades. Demand could rise even further with the growing adoption of artificial intelligence technologies.

"The African energy and industrialisation stories will be completely unique and cannot mirror any other continent in the world,” said Ogunbiyi. “That is why it is paramount that it is Africans that must be the ones to design, develop, and implement solutions that are just, equitable, and sustainable for our continent."

Ogunbiyi serves as the UN Secretary-General’s Special Representative for Sustainable Energy for All, and co-chair of UN-Energy, advising on issues relating to sustainable energy and the implementation of Sustainable Development Goal 7.

During her address at AEF26 this morning, Ogunbiyi spoke on how Africa’s demographic growth and transformation was an unprecedented opportunity for economic growth, innovation, and human development, but realising that opportunity would depend fundamentally on energy  as a critical enabler. 

“History demonstrates that no country has achieved sustained industrialisation, structural transformation, and broad-based prosperity without reliable and affordable energy systems,” she said. While Africa needed to lead its own future, partnerships were also vital as the continent sought to unlock its huge potential. 

Ogunbbiyi highlighted the $500 million Distributed Renewable Energy Fund in Nigeria, developed through a partnership involving the Nigerian Sovereign Investment Authority, Africa50, and SEforALL, as an example of African institutions working together to address challenges including equity financing, currency volatility, and access to local currency funding.

“We need all partners to work together with African governments. This includes development banks, development finance institutions, sovereign investors, philanthropic organisations, and what is paramount is also the private sector.”

Ogunbiyi highlighted Mission 300, an ambitious initiative launched by the African Development Bank and the World Bank, with support from the Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy For All that aims to provide electricity access to an additional 300 million Africans. 

“Mission 300 is not simply about providing electricity, it's about building energy systems that create jobs, enables businesses to grow, strengthens local industries, and supports policies and regulatory reforms across the continent.”