Global energy leaders gather in Cape Town for Africa Forum

Solar panels for renewable Energy on display at REFA Renewable Energy Forum Africa at Sarit Centre Nairobi. [File. Standard].

The Africa Energy Forum (AEF) kicked off yesterday in Cape Town.

This is the first time the event has been hosted in the South African city.

Set against the iconic Table Mountain, the four-day forum unites energy leaders, policymakers, investors, and innovators under the theme "Africa United" to address the continent's energy challenges and opportunities.

The opening day featured intensive workshops, early registrations, and a ceremony attended by representatives from various ministries of energy across the continent.

Over 25 ministers of energy and 30 heads of utilities are expected to participate.

The forum will feature high-level plenaries, technical sessions, and an exhibition showcasing advanced energy solutions.

It aims to foster deal-making and shape Africa's energy future. Special Envoy of the African Development Bank President Amadou Hott emphasised the need for $250 billion (Sh32.375 trillion) annually by 2030 to meet Africa's energy demand, including $120 billion (Sh15.54 trillion) yearly for electricity, with half allocated to renewables.

Despite representing 20 per cent of the global population, Africa receives only three per cent of global energy investments.

Risk mitigation

Mr Hott called for the mobilisation of Africa's $2 trillion (Sh259 trillion) in pension funds, insurance, and sovereign wealth funds, noting that even a 10 per cent investment in infrastructure could be transformative with proper risk mitigation.

He advocated for local currency financing to reduce exchange rate risks, stronger domestic capital markets, and increased involvement of local institutional investors to ensure sustainable energy access.

"We must expand local currency financing to slash exchange rate risks that drive up costs. We must structure infrastructure deals in local currency where revenues are also in local currency," he said.

"We must strengthen domestic capital markets. A crowd of local institutional investors. This isn't just prudent - it's essential for sustainable and resilient energy access."

The forum also seeks to amplify Africa's voice on the global stage ahead of South Africa's G20 hosting, aligning with the "Africa United" theme to prioritise the continent's energy needs and drive collective action.