Category: English

Posted on

Reserve Bank cuts repo rate by 25 basis points

Source: Government of South Africa

The South African Reserve Bank’s Monetary Policy Committee (MPC) has decided to reduce the repo rate by 25 basis points to 7%, with effect from the 1 August 2025. 

Addressing a media briefing on the MPC’s decision on the repo rate, SARB Governor Lesetja Kganyago said the decision to reduce the policy rate was unanimous.

“The rand has strengthened and inflation expectations have moderated. The June Consumer Price Index (CPI) print showed headline inflation at 3% and core at 2.9%, still at the bottom of our target range.

“That said, food inflation has risen, mainly due to meat prices. Fuel prices are also falling more slowly now, compared to the recent past. We therefore expect headline inflation to rise over the next few months, averaging 3.3% for the year, in line with our earlier forecasts.

“Prices then stabilise around the target objective over the rest of the forecast period. The risks to this outlook appear balanced,” the Governor said on Thursday.

While the economic activity for the first quarter of 2025 was seen as weak, the recent data flow has been positive, suggesting that the economy picked up in the second quarter of the year. 

“Statistics South Africa has since reported that growth was just 0.1%, in line with our expectations. However, there was also a downward revision to earlier Gross Domestic Product (GDP) data. Along with an assumption of higher United States tariffs on South Africa, this has caused us to mark down our 2025 growth forecast.

“The economy’s underlying growth trend remains low, mainly due to persistent supply-side problems, for instance, in logistics. Higher levels of uncertainty also seem to have affected output, with business and consumer confidence deteriorating in the first half of the year. However, we still expect modestly higher growth in the coming years, supported by ongoing structural reforms,” he said.

According to the Governor, over the past few months, the prospect of a lower inflation target has bolstered the rand and lowered long-term borrowing costs. 

“It is important to sustain this progress, and to minimise uncertainty about the longer-term objectives of monetary policy. Therefore, the MPC now prefers inflation to settle at 3%. In line with this, we have decided to aim for the bottom of our inflation target range, of 3-6%. 

“We welcome the recent moderation in inflation expectations and would like to see expectations fall further. This would expand policy space and make our framework more robust to shocks. 

“We will use forecasts with a 3% inflation anchor at future meetings. The South African Reserve Bank will also continue working with the National Treasury to complete target reform and achieve permanently low inflation,” Kganyago said. – SAnews.gov.za

Posted on

Regional Workshop on the Economic Community of West Africa States (ECOWAS) Fiscal Expenditure Methodology for Francophone and Lusophone States

Source: APO – Report:

.

The ECOWAS Commission, in collaboration with the World Bank, has launched a four-day regional workshop from the 28th to the 31st of July,2025 in Dakar, Senegal focused on strengthening the capacity of francophone and lusophone Member States to evaluate and manage tax expenditures.

Speaking at the opening ceremony, the Representative of the Minister of Finance of Senegal, Mr. Issa Faye warmly welcomed delegates on behalf of the Government and people of Senegal. He emphasized the country’s commitment to greater fiscal transparency and effective public resource management. “Tax exemptions, if well-targeted, can be tools for growth and poverty reduction. However, their real impact must be rigorously measured” he noted. Senegal’s hosting of the event, he added, reflects its strong support for regional fiscal harmonization and cooperation.

Mr. Rajiv Kumar, representing the World Bank, acknowledged the progress made by several ECOWAS Member States and encouraged greater transparency and systematic reporting. “World Bank is pleased to partner with ECOWAS to deliver this important workshop that aims to strengthen the capacity of member states to manage the fiscal and economic impact of tax expenditures,” he stated.

In her opening remarks, H.E. Ambassador Zelma Yollande Nobre Fassinou, ECOWAS Resident Representative to Senegal, emphasized the importance of the workshop and expressed gratitude to the Government of Senegal for its continued support for regional integration efforts. She highlighted that “Tax expenditures,when not properly evaluated, can undermine domestic resource mobilization and limit the capacity of our governments to finance vital programs.” Ambassador Fassinou emphasized that the workshop is not only a platform for technical learning but also an opportunity to strengthen partnerships and enhance collective governance in line with the 2023 ECOWAS Directive on Tax Expenditures. She further noted the importance of timely submission of tax expenditure reports by Member States, in alignment with the provisions of the Directive, as an important step towards improved transparency and accountability in fiscal policy across the region.

Ambassador Fassinou also highlighted the workshop’s aim to encourage open dialogue and peer exchange, noting that participants will present their national frameworks, challenges, and best practices. “This workshop provides an ideal platform to deepen our shared understanding, align our methodologies, and enhance regional cooperation in managing fiscal incentives” she said.

The workshop features technical sessions, practical exercises, and country presentations aimed at improving governance, transparency and alignment of tax incentives with national development strategies. Participants include officials from finance ministries, tax administrations and regional and international partners.

This workshop reinforces ECOWAS’ commitment to strengthening national capacities and aligning fiscal practices with regional integration objectives.

– on behalf of Economic Community of West African States (ECOWAS).

Posted on

Technical mission to Ghana on the deployment of Système Interconnecté de Gestion des Marchandises en Transit (SIGMAT) between Ghana and Côte d’Ivoire

Source: APO – Report:

.

From the 21st to 25th of July 2025, the ECOWAS Commission conducted a technical mission to Ghana as part of transit reforms aimed at ensuring the efficient cross-border movement of goods in the region. To this end, an IT solution called SIGMAT – “Système interconnecté de gestion des marchandises en transit” (Interconnected System for the Management of Goods in Transit) – was established to enable the electronic exchange of data between Member States.

Since the launch of SIGMAT in 2019, the Member States that have implemented this tool have reported its significant impact on transit procedures and the benefits it has brought to the countries.

It is in this context that ECOWAS Ministers from the Member States of the Abidjan-Lagos Corridor (ALCO), meeting in Cotonou on the 5th of October 2023, requested the ECOWAS Commission to ensure the prompt deployment of SIGMAT in the five Member States of the corridor. This is to facilitate the smooth cross-border movement of goods along the corridor.

Consequently, the ECOWAS Commission carried out a technical mission to Ghana from 21st to 25th July 2025 to assess and address the interconnection challenges between Ghana and Côte d’Ivoire in order to ensure seamless SIGMAT connectivity along the Abidjan-Lagos Corridor. The mission brought together technical and functional experts from the Commission, Côte d’Ivoire and Ghana.

During a meeting with the Commissioner of Customs of Ghana, the Director of Customs Union and Taxation, Mr. Salifou TIEMTORE, on behalf of the ECOWAS Commissioner for Economic Affairs and Agriculture, Mrs. Massandjé TOURE-LITSE, reiterated the commitment of the ECOWAS Commission to support Member States in their efforts to ensure the deployment of SIGMAT on all trade corridors to facilitate the efficient movement of goods in the region.

For his part, the Commissioner of Customs of Ghana, Brigadier General Glover ASHONG ANNAN, expressed the Ghana Revenue Authority’s gratitude to the ECOWAS Commission for this timely intervention aimed at securing transit trade in the ECOWAS region and reducing transit-related fraud that threatens the revenues and security of Member States.

At the end of the mission, the technical and functional challenges hindering the proper functioning of transit between Côte d’Ivoire and Ghana were resolved.

– on behalf of Economic Community of West African States (ECOWAS).

Posted on

Labour 20 Summit places fairness under the spotlight 

Source: Government of South Africa

Labour 20 Summit places fairness under the spotlight 

Employment and Labour Deputy Minister Jomo Sibiya has called for the dismantling of the misconception that competitiveness and fairness cannot co-exist in the global labour market.

The Deputy Minister was delivering remarks at the Labour 20 (L20) South Africa 2025 Summit. 

“Let us be clear: fair wages, decent work and strong social protection are not barriers to growth, but they are the foundations of resilient , future ready economies. The anticipated Employment Working Group declaration lays groundwork for these efforts.

“It recognises that full and productive employment, adequacy and sustainability of social protection systems, wage settings mechanisms, grounded in rights and fairness, are essential to build a just and inclusive societies. It calls on all of us to expand formalisation and reverse decoupling of wages from productivity,” Sibiya said on Tuesday.

The summit was held under the theme: ‘Fostering solidarity, equality and sustainability through a new social compact”.

The L20 represents workers’ interests at the G20 level, bringing together trade union representatives from G20 countries and international trade union federations. It is coordinated by the International Trade Union Confederation (ITUC) and the Trade Union Advisory Committee (TUAC) of the Organisation for Economic Cooperation and Development (OECD). 

The G20 labour component has also been active since the global financial crisis in 2008.

Through its existence, L20 aims to ensure that the voices of workers are heard in discussions on issues of economic policies and labour rights. South Africa’s labour federations – Congress of South African Trade Unions (Cosatu),  Federation of Unions of South Africa (Fedusa), National Council of Trade Unions (Nactu) and the South African Federation of Trade Unions Saftu – attended the summit.

Sibiya commended the L20’s commitment to tackling major labour market challenges, including inequality, declining real wages, and the shrinking labour income share of gross domestic product (GDP). 

“The issues strike at the very heart of our societies and also manifest in growing hardship for working families, the erosion of social cohesion as well as pervasive sense among workers that growth is no longer working for them.

“For the global south, the value of labour has been steadily diminishing. Productivity had risen but workers, particularly those at the lower end of the wage distribution, have not benefitted. The disconnect between the creation of wealth and its distribution is not only unjust, but also unsustainable.”

Priorities 

Sibiya said South Africa’s employment track has been anchored in four key priorities:
•    Promoting inclusive growth and youth employment to ensure that every young person has access to a decent job.
•    Accelerating gender equality in the workforce by addressing systemic barriers to women’s full and equal participation.
•    Reversing the decline in labour income share, so that workers regain the dignified and fair share of the value they help to generate.
•    Harnessing digitalisation to create an inclusive future of work rather than deepening the digital divide.

“Genuine economic growth is closely tied to decent work. This calls for us to actively shape policies and institutions to achieve fair labour market results, necessitates establishing wage systems whether through legislation or collective bargaining that assure a living wage, alongside investment and social protection for life-long income, security and strengthen social dialogue to empower both workers and employers,” he said. 

The importance of financial literacy among workers was also emphasised with the Deputy Minister saying there is a need to “capacitate workers of the world on how to take responsibility of their livelihood, making sure that they use their hard-earned salaries properly.” 

He added that South Africa’s own experiences offered valuable lessons in addressing inequality and unemployment.
According to Sibiya, social partners continue to play a vital role in shaping labour market reforms – this amidst structural constraints. 

“We strongly believe that when working together as government with social partners that is where solutions can be found. Our work is far from over. We must recommend social justice in our economic strategies,” he said. 

The L20 component engagements were also held alongside the 4th G20 Employment Working Group meeting held at Fancourt in George earlier this week. 

The aim of the L20 session was to have a dialogue between trade unions and certain G20 labour and employment Ministers to discuss joint approaches to tackling inequality, fostering wage increases, and increasing the labour income share, as a key priority of this year’s employment track. – SAnews.gov.za

 

DikelediM

31 views

Posted on

Government launches project for investors in energy sector

Source: Government of South Africa

Government launches project for investors in energy sector

As part of ongoing efforts to unlock infrastructure investments and strengthen the energy sector, government is calling on investors to invest in the country’s transmission infrastructure through the Independent Transmission Projects (ITPs) Programme.

This initiative marks the first time private investment will be allowed in South Africa’s transmission infrastructure, paving the way for a faster rollout of new high-voltage power lines across the country.

“This will support the efforts already underway by the National Transmission Company of South Africa to implement the Transmission Development Plan, which calls for more than 14 000 km of new lines to be built over the next decade.

“The introduction of ITPs is a key objective of Operation Vulindlela Phase II and will play an important role in the broader reform of the energy system. This reform includes the introduction of a competitive electricity market, which will allow multiple generators and traders to compete to provide electricity to consumers at the lowest cost and with the greatest efficiency,” Deputy Minister of Finance Dr David Masondo said on Thursday.

Addressing the launch of the Request for Pre-Qualifications for Independent Transmission Projects (ITPs) in Johannesburg, the Deputy Minister said the reform of the energy system is advancing rapidly, and its commitment remains unwavering. 

“We will not allow any vested interests to delay or obstruct this reform process, including Eskom itself. Indeed, today’s release of the Request for Quotation (RFQ) demonstrates that government, led by [Electricity] Minister Dr [Kgosientsho] Ramokgopa and his team, is working hard to implement the reforms that are needed to ensure long-term energy security and expand access to affordable electricity for all South Africans.

“National Treasury has supported this process through the design of a Credit Guarantee Vehicle, as an innovative mechanism to unlock private capital and complement public financing for infrastructure while minimising contingent liabilities,” he said.

South Africa is faced with a significant infrastructure financing need. 

It is estimated that South Africa’s infrastructure gap is around R3.5 to R4 trillion by 2025, or around R400 billion per annum. 

“This substantial need calls for scaling up of public financing for infrastructure as well as crowding in private capital through public-private partnerships (PPP). The objective of the Credit Guarantee Vehicle is to mobilise and leverage private capital to address South Africa’s infrastructure financing gap by mitigating offtake risk for private investors. 

“This vehicle will also support the efficient deployment of development partner funding under the Just Energy Transition Partnership (JETP) and the achievement of the country’s decarbonisation commitments,” the Deputy Minister said.

While the Credit Guarantee Vehicle will focus on the initial phase on enabling investments in transmission infrastructure, it will be expanded into other areas such as logistics and water over time. 

“The vehicle will be incorporated as a private company in South Africa, regulated by the Prudential Authority. It will operate as a standalone entity with an independent balance sheet and will target a minimum credit rating of AAA.

“A professional executive management team and board of directors with relevant experience and expertise will be appointed to operate and manage the fund,” he said.

The Credit Guarantee Vehicle will issue a combination of payment and termination guarantees to a Special Purpose Vehicle established for the project. 

This will substantially derisk early investments in ITPs until the model has been proven and established.

“We are targeting an initial capital raise of US$500 million for the vehicle, spread across a range of development partners. National Treasury has committed to providing first loss capital of 20%, which will be an initial US$100 million increasing to US$500 million (R9 billion) if needed.

“In February 2025, the Minister of Finance [Enoch Godongwana] wrote to a range of development partners asking them to submit an expression of interest to invest in the vehicle. The responses received have been overwhelmingly positive, with 32 development partners engaged thus far,” the Deputy Minister said.

Formal engagements with participating partners are continuing and will lead to the delivery of conditional equity participation commitment letters in the third quarter of 2025.

This will enable the Credit Guarantee Vehicle to be operationalized by July 2026 to align with the first phase of ITP projects.

“South Africa’s ITP programme, backed by credit guarantees, represents a globally innovative model which has been designed with our own context and needs in mind. 

“It will not only result in massive new investment in infrastructure but will enable thousands of megawatts of new renewable energy capacity to be connected in areas where grid capacity is limited. This will support economic growth, create jobs, and power our economy into the future,” Masondo said. –SAnews.gov.za

nosihle

144 views

Posted on

‘Evolution of energy landscape’ requires deepening government, industry collaboration

Source: Government of South Africa

‘Evolution of energy landscape’ requires deepening government, industry collaboration

The success of South Africa’s energy transition depends, in part, on deepening and stronger collaboration between government and the renewable energy industry to fill out policy implementation gaps and drive investment.

This according to Chief Executive Officer of the South African Wind Energy Association (SAWEA), Niveshen Govender, who participated in a panel discussion on the sidelines of the third G20 Energy Transitions Working Group (ETWG) meeting held in the North West.

“From an industry perspective… there are a number of requirements that we have to work on with government to ensure that we implement. I think we are doing a good job… We have the energy one stop shop that is now a single point of access to all permitting. You have the Department of Energy and Electricity with a minister [Dr Kgosientsho Ramokgopa] who is very active in unblocking [challenges]. 

“We have seen government’s readiness of market and allowing for business to come in, invest [and] implement on cost, on time – as quickly as possible – to get those electrons into place,” Govender said.

He noted that the industry and government stand at the same point with a “lot of commonalities” between the two.

“[This is] in terms of ensuring that we have access to energy per country, we have affordable energy to actually use, we have security of supply so we don’t go back to load shedding and we have sustainability in the long-term for reducing our carbon emissions.

“The Minister [Dr Kgosientsho Ramokgopa] very succinctly articulated… the importance of the energy mix and the importance of renewable energy being central to the decarbonisation of that energy mix,” Govender said.

However, despite these commonalities, misalignments still remain.

“We have very good policies in South Africa, top tier policies. They give good direction and good guidance. It takes everything into consideration… for the people of South Africa to make sure that we’re leaving no one behind.

“Where we do struggle is implementation of these policies. I think the biggest one of those is investor readiness. If you are not engaging industries, your readiness is going to [be impacted] as to what does the investor need to make that policy a reality,” the industry expert said.

He described the current developmental pace of the industry as an “evolution of the energy landscape”.

“We’ve moved from, essentially, the monopoly that Eskom was into public procurement of renewable energy and IPPs [Independent Power Producers]. Now we’re moving into bilateral agreements between these IPPs and… users. We’re even moving one step further into a liberalised energy market where you have traders and aggregators playing a role.

“We see this evolution of the electricity space that’s changing how we do business. It’s changing how we look at the landscape and energy planning,” Govender said. – SAnews.gov.za

NeoB

105 views

Posted on

Gauteng Social Development welcomes arrest of viral video suspects 

Source: Government of South Africa

Gauteng Social Development welcomes arrest of viral video suspects 

The Gauteng Department of Social Development has welcomed the arrest of three suspects involved in video footage that has emerged depicting a toddler smoking a pipe with an unknown substance in a broken bottle top.

“The Gauteng Department of Social Development is condemning the behaviour of parents following a video that went viral on social media where a toddler is seen smoking a pipe with an unknown substance in a broken bottle top. The department categorically wishes to state that it is gravely outraged by the irresponsible behaviour of the toddler’s parents and further commits to investigating the incident in order to provide the necessary intervention that will help the child.”

In a statement on Wednesday, the department further condemned actions that harm children, such as violence and negligence and emphasised the importance of positive role models and responsible behaviour towards children. 

“This incident is both unfortunate and barbaric, and the department welcomes the arrest of the three suspects involved from Newclare in Johannesburg, including the mother who is detained at a police station. The department calls on community members (particularly those who claim to be community activist and take to posting on social media) to instead take action against these kinds of incidents by reporting to the relevant institutions and/or law enforcement agencies.

“Rather than share such videos widely, the department appeals to the citizens to forward such videos to the police or to the department so that action can be taken against perpetrators, whilst ensuring children’s rights are protected and not violated through such social media postings.”

As the custodian of the Children’s Act, the department condemned the constant disregard of children’s safety and protection in the province.

Meanwhile, Gauteng police confirmed the arrests in the matter.

According to the South African Police Service (SAPS), the Gauteng Family Violence, Child Protection and Sexual Offences (FCS) responded to a call from Sophiatown police station about a child who was brought to the police station by Johannesburg Metro Police Department (JMPD) and the grandmother.

“The child was recorded on a video being given what appeared to be drugs and also being given those drugs to smoke. The Johannesburg FCS Unit commander Lieutenant Colonel Marema Mogale and his members responded immediately at about midnight. Three people, the mother and two men, were detained as they were brought to the police station by [the] JMPD,” said the SAPS on Wednesday.

The three-year-old boy was taken to hospital for medical attention and then taken to a place of safety.

The trio were expected to appear before the Johannesburg Regional Court on Thursday, 31 July 2025, on child abuse charges. – SAnews.gov.za

Neo

120 views

Posted on

Burkina Faso: African Development Bank supports youth entrepreneurship in rural areas

Source: APO – Report:

The African Development Bank (www.AfDB.org) and the Government of Burkina Faso launched the third phase of the incubator program of the Support Project for Youth Employment and Skills Development in Rural Areas (PADEJ-MR in the French acronym) on July 15, 2025, in Ouagadougou, the capital of Burkina Faso.

Ms. Franceline Kaboré, representing the country’s Minister of Sports, Youth, and Employment, and Ms. Mouna Diawara, Head of Operations both attended.

The PADEJ-MR aims to promote the economic empowerment and resilience of young people in rural areas through entrepreneurship. The project, with a total cost of €13.62 million, mainly financed by a €12.25 million grant from the African Development Bank, has supported the establishment of an incubator mechanism providing practical training in financial education and safeguards, personalized coaching, and local technical support.

The initiative aims to help young people convert their ideas into viable businesses in promising sectors such as agriculture, agri-food, services, crafts, and new technologies. In the third phase of the incubator program, 65 young people from the four regions covered by the Project are receiving support to help them prepare business plans that are eligible for financing.

Ms. Franceline Kaboré commended the African Development Bank’s commitment to the PADEJ-MR. She noted that youth entrepreneurship is a national priority enshrined in the strategic vision of the government of Burkina Faso.

Ms. Mouna Diawara emphasized that “the Project to Support Youth Employment and Skills Development in Rural Areas is a concrete and integrated response to the problem of youth unemployment in rural areas. The African Development Bank is ready to continue supporting Burkina Faso in its economic transformation efforts, with a particular focus on opportunities for young people and women.”

Sévérine Lankouandé, speaking on behalf of the beneficiaries of the incubator, expressed gratitude to the government and to the African Development Bank for the opportunities that the incubator program had already provided. A cohort of young entrepreneurs have already received training that will enable them to launch transformative enteprises.

– on behalf of African Development Bank Group (AfDB).

Media contact:
Department of Communication and External Relations
media@afdb.org

Media files

.

Posted on

Coca-Cola Beverages Africa celebrates nine years of growth and shared opportunity

Source: APO – Report:

Coca-Cola Beverages Africa (CCBA) (www.CCBAGroup.com) marks nine years since the transformative merger that established it as the continent’s largest Coca-Cola bottling partner.

This milestone is grounded in a proud legacy that began 85 years ago, when the first Coca-Cola was bottled in Gqeberha, South Africa in 1940 by the SA Bottling Company (Pty) Ltd. That same year, Philipp Rowland Gutsche joined the company, beginning a family legacy that would shape the business for generations. From those early beginnings, CCBA has evolved into a key player in Africa’s beverage industry, with a deep commitment to local communities and long-term development.

Today, CCBA continues to invest in new production capacity, reinforcing its belief in Africa’s potential and its commitment to creating shared opportunities across the value chain.

In the past year alone, CCBA has launched new state-of-the-art bottling lines in South Africa, Namibia and Malawi, increasing total production capacity by over 108,000 bottles per hour, and equipped with advanced technology, including artificial intelligence. CCBA has also opened a new polyethylene terephthalate (PET) flaking plant in Namibia which doubled the capacity of the only mechanical recycler of plastic in the country through a partnership with Plastic Packaging. The completion of this cutting-edge recycling facility has enabled Namibia Polymer Recyclers (NPR), a subsidiary of Plastic Packaging, to recycle up to 500 tons of PET per month.

CCBA has also announced the company’s intention to grow its investment in Kenya by up to $175m in the five years between 2024 and 2029, should it achieve its anticipated growth targets in the country.

“These investments are a demonstration of our progress and continued belief in the future of Africa,” said Sunil Gupta, Chief Executive Officer of CCBA.

“They reaffirm the Coca-Cola system’s local approach – we produce locally, distribute locally and, where possible, source locally. Our value chain includes a significant number of businesses, many of them small and medium enterprises (SMEs).

“These investments go beyond numbers, it’s about creating shared opportunities across the value chain,” Gupta said.

“Our vision is to refresh Africa and create shared value. As we celebrate our ninth birthday as a company, we aim to inspire excellence and set the standard as Africa’s leading and most admired company, fostering growth, innovation and impact across the continent,” Gupta said.

– on behalf of Coca-Cola Beverages Africa.

ISSUED BY:
Keli Fernie
Head: Reputation and Communication
Coca-Cola Beverages Africa
Tel: +27 82 419 8766
Email: kfernie@ccbagroup.com

Follow us on: 
LinkedIn: https://apo-opa.co/4l54fGW

About CCBA:
CCBA is the eighth largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for over 40% of all Coca-Cola products sold in Africa by volume. With over 17,000 employees in Africa, CCBA services more than 800,000 customers with a host of international and local brands. CCBA operates in 14 countries, South Africa, Kenya, Ethiopia, Uganda, Mozambique, Namibia, Tanzania, Botswana, Zambia, the islands of Comoros and Mayotte, Eswatini, Lesotho, and Malawi.

Learn more at  https://www.CCBAGroup.com

Media files

.

Posted on

Op-Ed: Financing Energy Access in Africa: Leveraging Fossil Fuel Revenues to End Energy Poverty (By NJ Ayuk)

Source: APO – Report:

NJ Ayuk, Executive Chairman of the African Energy Chamber (https://EnergyChamber.org)

In an emissions-focused world, do oil and gas revenues have a role to play in ending energy poverty in Africa? It may sound counterintuitive, but many would argue that they do, albeit as enablers of a future powered by alternative energy sources.

The key lies in recognizing that Africa’s situation is unique, and solutions take time, building on what we have and what we can do with it. This means that, in working towards a just energy transition, the continent’s oil and gas resources shouldn’t be viewed as obstacles that need to be immediately replaced by renewable energy sources. Instead, rather than prematurely phasing out fossil fuels in response to global pressure, Africa should harness these revenues responsibly to finance its energy transition and ultimately eradicate energy poverty.

Prioritizing Development Alongside Sustainability

Nearly 600 million Africans still live without access to electricity (https://apo-opa.co/3U6V4uH). This access is a fundamental human right, yet energy poverty remains one of the continent’s most significant barriers to development. This undermines health systems, education, industrialization, and dignity. As the world debates how to rapidly achieve net-zero, Africa’s priority is different: how to power its people now, while building a sustainable future.

Measuring Africa’s energy transition progress against external calls for an abrupt end to fossil fuels risks leaving millions behind. Our continent contributes less than 4% (https://apo-opa.co/4odEQxF) to global emissions, yet we are expected to decarbonize at the same pace as industrialized nations that built their wealth on hydrocarbons.

Instead, the continent’s abundance of fossil fuels should be viewed as a bridge, not a barrier. The African Energy Chamber (AEC) Africa-Paris Declaration (https://apo-opa.co/3GO1ImM) underscores this principle – Africa’s oil and gas revenues can and must be used as a financial lever to invest in electrification, clean energy, and infrastructure projects. This pragmatic and just approach prioritizes development alongside sustainability, not instead of.

There are several ways to achieve this. First, reinvesting oil and gas revenues into rural electrification can transform communities. Decentralized solutions like off-grid solar and mini-grids offer practical ways to reach remote areas. Although urban dwellers do experience power outages, for many rural populations, it’s a way of life. For the mother cooking with firewood or the student studying by candlelight, a small solar grid is life-changing. Fossil fuel revenues can finance these systems at scale, bridging the immediate access gap while longer-term grid expansions are in progress.

Second, establishing innovative financing mechanisms is essential. For instance, the fledgling Africa Energy Bank (https://apo-opa.co/4l5R2Of) aims to bridge the continent’s estimated $31 billion to $50 billion annual energy funding gap by focusing predominantly on financing energy projects. Launched in 2025, the bank is poised to play a transformative role in mobilizing capital for African energy projects. Additionally, global investors are increasingly exploring energy investment opportunities in Africa. In support of this, development finance institutions, such as the African Development Bank, the World Bank, and the International Finance Corporation, are de-risking investments by offering concessional loans, guarantees, and technical assistance, making investment in African energy projects more attractive. 

Third, policy reforms that create enabling environments are critical. Here, governments have a role to play in prioritizing revenue-generating projects, creating stable regulatory frameworks, and offering incentives for public-private partnerships. This will support investment, reduce risks, and unlock the transformative power of energy access.

These solutions demonstrate the importance of a fair and equitable transition and the vital role that fossil fuels will continue to play in achieving this goal. They also prove that this goal is achievable, even if it is on the continent’s own terms.

Unique Solutions to Africa’s Energy Challenges

Africa’s path to net-zero has the same end goal as the rest of the world, but it can’t mirror their journey. Our starting points are different, and our development needs are urgent. We understand that climate action can’t be delayed. But it can be just, inclusive, and rooted in African realities. And it can also be supported by revenues from our abundant natural resources.  

The Africa-Paris Declaration notes that ‘a fair transition recognizes that fossil fuels remain valuable for Africa’s development, prosperity, and energy access goals. Africa doesn’t need to choose between oil and gas or renewables. Given our current position, all are important and require both strategic and sensible deployment. Fossil fuels generate the revenues to invest in solar, wind, hydropower, and grid infrastructure. They fuel industries that create jobs. They support healthcare, education, and innovation.

When managed responsibly, Africa’s fossil fuel revenue can serve as a bridge to a brighter, greener, and more prosperous continent. Will it be quick and easy? No. Will some question the approach? Most certainly. But the alternative is leaving hundreds of millions of people in the dark.

– on behalf of African Energy Chamber.

Media files

.