Africa stands at a decisive moment in its development journey. The continent’s potential is immense, driven by its rich natural resources and a vibrant, youthful population. Yet, the challenges it faces are equally formidable, with the persistent energy deficit being one of the most pressing issues that continue to hinder economic progress, stifle innovation, and entrenched poverty.
The narrative of Africa’s development has often highlighted its abundant resources, including vast mineral wealth, fertile lands, and the immense promise of renewable energy. However, despite these advantages, Africa remains paradoxically energy-poor. More than 600 million Africans still lack access to electricity, a stark reality that underscores the continent’s urgent need for a sustainable and inclusive energy strategy. Energy is the foundation upon which modern economies are built, essential for advancing education, healthcare, and industrialization. The critical question is not whether Africa can secure its energy future, but how swiftly and effectively it can achieve this.
As the 2030 deadline for the Sustainable Development Goals (SDGs) draws near, the urgency of addressing Africa’s energy challenges has never been more apparent. The SDGs, particularly those related to affordable and clean energy, climate action, and sustainable development, are not optional; they are crucial for the continent’s future. Yet, recent assessments show that Africa is not on track to meet many of these goals, a situation that calls for immediate and coordinated action.
Read also: States tap local resources for sustainable energy markets
One of the significant challenges is the continent’s reliance on outdated energy infrastructure and a continued dependence on fossil fuels. While there is a global movement towards cleaner, more sustainable energy sources, Africa’s transition must be carefully managed. This shift towards renewable energy is not only an environmental necessity but also an economic imperative. However, Africa’s energy strategy must be balanced and pragmatic. The continent cannot afford to ignore its current energy realities, particularly in regions where alternatives to fossil fuels are not yet fully viable. Recent advancements in energy infrastructure, including large-scale projects aimed at enhancing energy production, must be integrated into a broader, long-term vision that prioritises sustainability and economic resilience.
Addressing Africa’s energy challenges requires a comprehensive rethink of development strategies on the continent. The outdated donor-recipient model must be replaced with partnerships that are equitable, transparent, and aligned with Africa’s long-term goals. Public-private partnerships (PPPs) are essential, but they must be built on mutual respect and a shared commitment to the well-being of the African people. These partnerships should focus on creating sustainable value chains that benefit local communities and drive inclusive growth.
Environmental, Social, and Governance (ESG) principles are central to this transition, ensuring that development efforts are aligned with broader societal goals. ESG reporting provides a framework for businesses and governments to measure and manage their impact on the environment and society. By integrating ESG criteria into investment decisions, stakeholders can ensure that economic activities do not compromise future generations’ ability to meet their needs. Green financing, sustainability-linked investments, and other innovative financial models are critical tools in this endeavour. These instruments can unlock the capital necessary for Africa’s energy transition, promoting growth that is not only profitable but also sustainable and inclusive. To fully realise the potential of these financial models, it is imperative that they are implemented with strategic foresight and a deep commitment to long-term sustainability.
The Africa Social Impact Summit (ASIS) is a platform that is instrumental in addressing these challenges. Now in its third edition, the summit, co-convened by the Sterling One Foundation and the United Nations, in collaboration with over 40 private sector, public sector, and developmental partners, serves as a vital platform for catalysing change. The platform prioritises galvanising effective multi-level and multi-sector partnerships for increased impact, driving more catalytic capital, innovative and patient financing into critical sectors, and advocating for innovative policy changes in critical sectors.
Read also: Public-private partnerships for inclusive growth across Africa
The theme for this year’s summit, “Reimagining Progress: A New Blueprint for Sustainable Growth in Africa,” is particularly timely as it underscores the urgent need to rethink development strategies and adopt innovative approaches to the continent’s most pressing issues. ASIS brings together leaders from the private sector, public sector, and development community, along with critical stakeholders across various sectors, to forge partnerships and develop actionable solutions. The third edition of ASIS, held recently, featured pivotal discussions on green financing and sustainable development, emphasising the need for transparency, accountability, and long-term planning in Africa’s development agenda.
The path to achieving the SDGs in Africa is challenging, but it is a path that must be pursued with determination and urgency. The commitments made at ASIS and similar platforms must translate into concrete actions that accelerate Africa’s progress towards these goals. This is not just about setting targets; it is about achieving them in a manner that is sustainable, inclusive, and beneficial for all Africans.
Africa’s future is filled with promise, but realising this promise requires bold, immediate, and decisive action. The energy transition, supported by sustainable investments and underpinned by robust partnerships, is not an option; it is a necessity. The time for action is now, and the choices we make today will shape the continent’s trajectory for decades to come.
Olapeju Ibekwe, CEO, Sterling One Foundation. She is a seasoned business leader, filmmaker, and sustainability professional with keen interests in women empowerment, youth development, access to quality education and better healthcare.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
