By International Renewable Energy Agency (IRENA)
October 14, 2024

The Accelerated Partnership for Renewables in Africa (APRA) officially launched its Investment Forum today in Nairobi, Kenya. This highly anticipated event brought together a diverse range of stakeholders, including government ministers, investors, project developers, and financial institutions, with a shared objective: to scale up investments that align with Africa’s ambitious renewable energy goals. The forum serves as a crucial platform for open dialogue, the development of a robust project pipeline, and the mobilization of large-scale funding that will accelerate the continent’s energy transition.

The forum is particularly significant in light of the Nairobi Declaration, which calls for a collective boost in Africa’s renewable energy capacity to 300 GW by 2030. This goal aligns with the broader COP28 objective to triple global renewable power by the end of the decade. Under the leadership of Kenya, APRA aims to foster collaboration among African nations—such as Ethiopia, Ghana, Namibia, Rwanda, Sierra Leone, and Zimbabwe—and the international community to make significant strides toward a greener and more sustainable energy future.

The three-day forum features a wide variety of activities, including high-level panels, technical discussions, and matchmaking sessions between project developers and financiers. An exhibition of renewable energy projects from across the continent is also part of the agenda, designed to provide global exposure to African initiatives that are paving the way for sustainable energy solutions.

Africa’s Role in Global Climate Objectives

Africa’s vast renewable energy potential is increasingly being recognized as central to the success of global climate action. As Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), stated during the forum:

“The success of global climate objectives is intrinsically linked to Africa realising its vast renewable energy potential. APRA sets a new benchmark for international cooperation, ensuring that support from the Global North for Africa’s energy transition fully complements the continent’s own priorities.”

The partnership is crucial in ensuring that Africa’s energy transition is not only supported but fully aligned with its economic and developmental goals. La Camera emphasized that APRA marks a milestone in uniting global and local stakeholders to mobilize much-needed finance for energy projects that could make Africa a renewable energy powerhouse.

Momentum from the Nairobi Declaration and Africa Climate Summit

The APRA Investment Forum builds on the momentum created by the 2023 Africa Climate Summit and the Nairobi Declaration, which called for ambitious climate action and a significant increase in renewable energy generation. These initiatives are helping to shape a new narrative for Africa as a key player in the global transition to cleaner, more sustainable energy systems.

Hon. J. Opiyo Wandayi, Kenya’s Cabinet Secretary for Petroleum and Energy, praised the forum’s role in advancing Africa’s energy transition:

“Under President Ruto’s leadership, which championed both the Nairobi Declaration and APRA, Africa’s energy transition is gaining unprecedented momentum. The APRA Investment Forum is a significant milestone, mobilising critical investments to support Africa’s sustainable development at home while accelerating progress on global climate and energy transition goals.”

The Importance of Renewable Energy Investment

Africa is poised to benefit immensely from renewable energy investments. The continent has an abundance of natural resources, particularly solar and wind energy, which offer immense potential for electricity generation. According to recent estimates, Africa could generate over 1000 GW of solar energy annually, yet it has only tapped into a fraction of this capacity. Investments in renewable energy infrastructure are critical to unlocking this potential, creating jobs, and spurring economic growth.

Despite this potential, Africa’s energy sector has faced several challenges, including inadequate financing, underdeveloped infrastructure, and regulatory bottlenecks. The APRA Investment Forum aims to address these issues by attracting international investments and facilitating partnerships between African countries and the global financial community.

Joseph Nganga, Vice President for Africa at the Global Energy Alliance for People and Planet (GEAPP), highlighted the forum’s potential to unlock critical climate finance:

“APRA’s inaugural forum builds on the momentum of the 2023 Africa Climate Summit and the Africa Leaders Nairobi Declaration, accelerating progress toward Net Zero and unlocking crucial climate finance. By aligning with the efforts of the World Bank, African Development Bank, and partners like GEAPP, the Rockefeller Foundation, and SEforAll, we are committed to connecting 300 million unelectrified Africans to clean, affordable power by 2030—fuelling economic growth, job creation, and climate resilience.”

Nganga’s remarks underscore the forum’s focus on low-carbon electrification across Africa, which could significantly reduce carbon emissions while expanding access to electricity for millions of people.

Key Partnerships and International Cooperation

One of APRA’s key strengths is its collaborative approach. Backed by IRENA, which serves as the APRA secretariat, the initiative has gained the support of multiple international stakeholders, including Denmark, Germany, the United Arab Emirates, and the United States. These partnerships are crucial for providing the technical expertise, financial resources, and policy frameworks needed to accelerate renewable energy development across Africa.

The forum is also supported by advocacy and philanthropic actors such as the Rockefeller Brothers Fund and other organizations committed to sustainable development. These collaborations aim to ensure that Africa’s renewable energy transition is both inclusive and equitable, benefiting all sectors of society, from urban centers to rural communities.

Addressing Africa’s Energy Deficit

Africa faces a substantial energy deficit, with over 600 million people currently lacking access to electricity. This energy poverty has hindered economic development and exacerbated social inequalities across the continent. Expanding access to renewable energy could be transformative, offering a reliable and sustainable solution to the region’s energy challenges.

Through initiatives like APRA, African countries are prioritizing investment in renewable energy technologies such as solar, wind, and hydropower. The forum highlighted that, by 2030, Africa could add 300 GW of renewable energy capacity, which would not only address the continent’s energy deficit but also make a significant contribution to global climate goals.

Opportunities for Green Industrialization

Renewable energy is also a critical component of Africa’s broader efforts to achieve green industrialization. As the world transitions to a low-carbon economy, there is growing demand for industries that are powered by renewable energy and focused on producing sustainable products. Africa’s abundant renewable energy resources make it an ideal location for the development of green industries, from electric vehicle manufacturing to solar panel production.

The APRA Investment Forum provides a platform for African countries to showcase their potential in green industrialization and attract investments in sectors that will create jobs, reduce emissions, and drive economic growth.

Expanding APRA’s Membership

Looking ahead, APRA’s membership is expected to expand to include more African countries with high ambitions for renewable energy development. This expansion will be crucial in ensuring that the partnership’s benefits are felt across the continent, from East to West Africa and beyond. By fostering collaboration among a growing number of African nations, APRA aims to create a regional ecosystem that supports innovation, investment, and knowledge-sharing in the renewable energy space.

Conclusion

The APRA Investment Forum in Nairobi represents a watershed moment for Africa’s renewable energy sector. By bringing together key stakeholders from governments, financial institutions, and the private sector, the forum is helping to lay the groundwork for large-scale investments that will drive Africa’s energy transition and contribute to global climate goals. As Africa works to add 300 GW of renewable energy capacity by 2030, initiatives like APRA will play an essential role in ensuring that the continent can fully harness its renewable energy potential.

With continued international cooperation, Africa can lead the way in the global transition to clean energy, creating a sustainable future for its people and contributing to the world’s efforts to combat climate change.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

15th October, 2024