Accra: Ghana's Energy and Green Transition Minister, Dr John Abdulai Jinapor, emphasized that financing is the primary obstacle to unlocking the energy potential across Africa. He highlighted the necessity for coordinated investments to help the continent utilize its energy resources for technological advancement, innovation, and industrial growth.
According to Ghana News Agency, Dr Jinapor delivered these remarks at the Stellenbosch Business School Alumni Association Thought Leadership Forum in Accra. The event, themed 'Technology-Powered Africa: Financing Sustainable Energy and Enterprise Transformation,' served as the backdrop for his call to action. In his address, Dr Jinapor stressed that Africa's energy sector faces high capital costs due to perceived risks, limited investment focus, and insufficient funding for energy access and infrastructure development.
Dr Jinapor revealed that between 2012 and 2021, public and private financiers, including institutions linked to the G20 and multilateral development banks, mobilized approximately US$345 billion for African energy projects. However, he pointed out that about 77 percent of these funds were concentrated in just ten countries: Egypt, Nigeria, South Africa, Angola, Morocco, Ghana, Uganda, Kenya, and Ethiopia.
He urged African governments to prioritize strategic and collaborative financing to develop sustainable power systems and enhance regional electricity trade. Dr Jinapor underscored the continent's vast energy resources, which include substantial solar potential and oil and gas reserves in nations such as Nigeria, Mozambique, Algeria, and Senegal. Despite these resources, more than half of Africa's population still lacks access to electricity.
The Minister highlighted the pressing challenge in the area of clean cooking, where many households still rely on inefficient firewood, leading to health issues, deforestation, and waste. He advocated for closing the gap between Africa's energy potential and its current reality through effective funding structures, cost controls, and committed government action.
Dr Jinapor stated, "With the right funding structures, cost controls, and government prioritisation, Africa can unlock its energy wealth to drive industrialization and poverty reduction." He encouraged African governments to focus on economic transformation and manage energy resources as an economic base, avoiding subsidies and overspending.
He called for sustained investments in transmission, distribution, and energy storage, as well as increased cross-border electricity trade. Sharing excess power within the region, he noted, could enhance energy security by allowing countries to support one another.
During a panel discussion, experts from academia, finance, and industry emphasized the need to strengthen technological and data capabilities in Africa. They asserted that while access to capital is crucial, it alone cannot solve the continent's development challenges. The speakers advocated for a common vision on sustainable development and collective action to achieve it. They cited mobile money as an example of successful technology adaptation in Africa and urged similar approaches in sectors like energy access.