Africa strengthens its energy self-reliance.

Escalating conflicts in the Middle East have become a geoeconomic shock directly impacting the lives of people in Africa, as most countries on the continent are net importers of fuel, dependent on oil, liquefied petroleum gas (LPG), fertilizers, and many essential goods.

Africa Energy Indaba opens up many investment opportunities. (Photo: SA Profile)

Strengthening infrastructure investment to ensure energy security and accelerate energy transition was the main theme discussed at Africa Energy Indaba 2026 in South Africa, aiming to help the African continent become more self-reliant in this crucial sector.

AFRICA Energy Indaba 2026, held in South Africa, focused on key topics such as the future of Africa's electricity system, mechanisms for financing energy infrastructure, and how to build projects attractive enough to lenders, banks, and investment funds. This event is considered by experts to be the "policy and capital meeting point" for Africa's energy sector, where ministers, grid operators, financial institutions, and businesses come together to discuss specific projects, from solar and wind power to gas-to-energy and transmission grid upgrades.

Thematic discussions on finance, private meetings between project owners and banks, and a "deal room" area for project presentations aim to forge new investment commitments, especially in the context of many African countries facing severe electricity shortages but limited borrowing capacity.

Africa's population is growing rapidly, and energy demand is increasing, but efforts to expand the power grid are not keeping pace with actual needs. According to the Africa Energy Chamber (AEC), the energy crisis on the continent is worsening, with nearly 600 million people lacking access to electricity and an annual investment shortfall of approximately $12.5 billion needed to bridge the supply-demand gap. Africa currently needs around $15 billion per year to expand electrification, but has only attracted about $2.5 billion so far.

Africa accounts for approximately 20% of the world's population but attracts only 2% of total global investment in clean energy, leaving Sub-Saharan Africa as the region with the largest concentration of the world's population without electricity. Bridging the energy supply-demand gap is not only a pressing societal need but also a significant investment opportunity in Africa. Businesses and investors who enter the African market early will have the chance to reap long-term benefits, while also contributing to industrialization and job creation.

However, Africa is facing a serious funding shortfall for infrastructure development, including energy infrastructure, amid declining official development assistance (ODA). The African Union (AU) Commissioner for Infrastructure and Energy, Lerato Dorothy Mataboge, urged African nations to increase domestic resource mobilization to offset the funding gap for infrastructure projects.

In this context, Africa Energy Indaba 2026 is not just a specialized event, but also a clear reflection of the dilemma many African countries are facing: having to demonstrate commitment to low-emission targets to access international capital while simultaneously ensuring sufficient electricity for economic growth and people's livelihoods.

Analysts suggest that responsible gas extraction combined with renewable energy development could help Africa secure electricity for households and industries while limiting its impact on global emissions. As the host nation of Africa Energy Indaba 2026, South Africa is sending a message that Pretoria wants to be at the forefront of discussions on energy security and the energy transition on the continent.

THANH VAN

Source: https://nhandan.vn/chau-phi-tang-cuong-tu-chu-nang-luong-post947378.html