Sub-Saharan Africa is at a turning point in its energy journey, with vast renewable resources set to revolutionise its energy landscape. By leveraging solar, wind, and hydroelectric power, Africa can drive sustainable growth and economic resilience, writes Zakhele Mayisa, co-head of Nedbank Corporate and Investment Banking’s Africa Infrastructure Finance.
Recent statistics underscore the potential and challenges in renewable energy for Africa. In 2020 only 9% of Africa’s power came from renewable sources, predominantly hydropower. However, from 2019 to 2020, solar and wind capacity increased by 13% and 11%, respectively, with hydropower growing by 25%. The continent aims to boost renewable energy production capacity from 56 GW in 2022 to at least 300 GW by 2030.
Information communication technology infrastructure is equally important for economic growth. Telecommunications infrastructure, including fibre networks and data centres, are crucial for facilitating market communication and connections. The rise of artificial intelligence and the growing need for data storage present growth opportunities for data centres. These facilities, however, require sustainable solutions to manage their intense water and power needs.
However, private sector investment in Africa faces barriers such as instability, poor regulatory frameworks, and policy uncertainty. South Africa’s energy infrastructure issues, as revealed by, for example, load-shedding, deter investment. Efficient ports and rail networks are essential to support economic activity and attract investment. A skilled labour force is necessary to operate sophisticated processing plants, and robust health systems are needed to ensure a healthy workforce.