Minister for Energy and Green Transition, Dr John Abdulai Jinapor, has identified inadequate financing as the greatest challenge preventing Africa from fully harnessing its energy resources, calling for coordinated investment to drive industrialisation, innovation and sustainable development.
Speaking through a representative at the Stellenbosch Business School Alumni Association Thought Leadership Forum in Accra on Thursday, Dr Jinapor said Africa’s energy sector continues to face high capital costs, perceived investment risks and limited funding for energy access and infrastructure.
He noted that while public and private financiers, including G20-linked institutions and multilateral development banks, mobilised about US$345 billion for African energy projects between 2012 and 2021, nearly 77 per cent of the funding was concentrated in just ten countries, including Ghana, Nigeria, Egypt, South Africa, Morocco, Angola, Uganda, Kenya and Ethiopia.
Despite the continent’s vast solar, oil and gas resources, Dr Jinapor said more than half of Africa’s population still lacks access to electricity, while millions continue to rely on firewood for cooking, with adverse effects on health and the environment.
He stressed that unlocking Africa’s energy wealth requires stronger funding structures, cost controls and government commitment.
“With the right funding structures, cost controls and government prioritisation, Africa can unlock its energy wealth to drive industrialisation and poverty reduction,” he said.
The Minister also called for greater investment in electricity transmission, distribution and energy storage, alongside stronger cross-border electricity trade to improve energy security across the continent.
During a panel discussion, participants from academia, finance and industry said Africa must strengthen its technological and data capabilities, arguing that access to finance alone will not solve the continent’s development challenges. They urged governments and stakeholders to adopt a shared vision for sustainable development and cited mobile money as an example of technology succeeding when adapted to local needs.