Africa had the ability to solve its own energy challenges and change the face of its economy, a panel of speakers at the Africa Energy Indaba agreed on Tuesday.
However, the solution to the continent's attempt to gain traction in the energy sector required regional collaboration, strong policy development and the empowerment of its people.
Energy Intensive User Group chairperson Mike Rossouw, speaking during a panel session with Werksmans Attorneys director for Africa Greg Nott, Deloitte leader for infrastructure and power Shamal Sivasanker and Accenture London industry MD for energy Arthur Hanna, said the continent also had to focus on realising its energy ambitions by identifying and resolving the root causes of Africa’s core challenges.
Rossouw commented that Africa had taken to treating the symptoms of its energy crisis.
Strong leadership was required, asking first why and what the sector needed, before embarking on the how, and discussing what was essential, instead of pursuing the "ought-to-haves".
A World Economic Forum (WEF) report had found that Africa currently had 15% of the world’s population, but only consumed 3% of global energy.
The continent, despite its abundant, yet underexploited oil, gas, coal and hydro energy resources, had underserved energy demand and a fragmented energy market.
Africa's primary energy demand was expected to increase by 8.9% a year, while capacity would increase by 6% a year, the report stated.
Despite the report's findings that significant funding was required to develop Africa's energy industry, Rossouw believed funding was not the problem. The challenge was rather how to best gain traction "on the ground" with the resources the continent had in the form of people and policies.
The WEF said that $43.6-billion a year would be required to finance energy infrastructure development, particularly during the "critical" period between 2011 and 2020, but the continent would face a 50% financing gap, even "if the utilities improve their financial performance and were able to contribute to their investment programmes."
Further, globally, about $38-trillion in investment in energy infrastructure would be required by 2035. Over 1.3-billion people were currently without access to electricity – a figure that could rise by 30% over the next 20 years.
Global demand for energy was expected to double by 2050.
Rossouw emphasised that Africa needed to develop and empower its people to drive and manage the development of a sustainable energy industry.
Further, he said the continent should promote regional collaboration – a sentiment echoed by Sivasanker, who said the development would be impossible without Africa's leaders working together.
Many African countries were currently buckling under the demand for energy and this provided the opportunity for the various States to examine long-term strategies, efficiencies, affordability and pricing and the States' roles in development.
Strong, transparent, rational and consistent policies were needed to guide African countries and negotiate and address the "trilemma" – the energy sector, economic growth and environmental sustainability.
Hanna emphasised that Africa was seen as "the investment destination" but uncertainty and limited 'ease of doing business' had soured sentiment towards the continent.
However, Sivansanker urged stakeholders not to lose sight of global trends while focusing on internal problems.
The changing shape of the energy sector globally would impact on Africa and it should position itself to ensure it was "not left behind".