APRA Investment Forum: Africa's Renewable Energy Future

On October 14, 2024, the Accelerated Partnership for Renewables in Africa (APRA) Investment Forum brought together key stakeholders to discuss the future of renewable energy in Africa. The forum, hosted by the International Renewable Energy Agency (IRENA) and led by Director General Francesco La Camera, highlighted the immense potential of renewable energy in Africa, as well as the critical challenges that must be overcome. Here are the key insights and discussions from the event.

Africa’s Energy Landscape: Current Status and Key Challenges

Africa has immense renewable energy potential, spanning solar, wind, geothermal, and hydropower resources. Despite this, the continent accounts for only 1.6% of the global share of installed renewable power capacity, reflecting its lagging position in the energy transition.

Key Challenges Identified:
- Underdeveloped Infrastructure: The lack of robust grids, storage solutions, and interconnected pipelines makes it difficult to scale renewable projects. Even developed projects face hurdles in delivering electricity efficiently due to these infrastructure gaps.
- Investment Gaps: Africa attracts only 2-3% of global renewable energy investment, which is disproportionately low compared to its needs and potential.
- Energy Poverty: A significant portion of Sub-Saharan Africa remains unelectrified, with over 600 million people lacking access to electricity. This energy poverty continues to hinder socio-economic development across the region.

Opportunities and the Importance of Renewable Energy Investment

Despite the challenges, La Camera underscored that Africa’s vast renewable energy potential offers a unique opportunity to transform the continent’s energy landscape and drive inclusive economic growth. According to IRENA, there is a $2.2 trillion investment opportunity across various renewable projects, including in countries like Nigeria, which has seen success with renewable energy auctions.

La Camera stressed that unlocking this potential requires active participation from the private sector, as well as a stronger role for multilateral financial institutions. This involves funding the development of flexible, interconnected energy systems that can better accommodate renewable sources. Investment in renewable energy can catalyze green industrialization, boost GDP growth, create employment, and improve overall human welfare.

APRA: A Strategic Initiative for Africa’s Energy Transition

The Accelerated Partnership for Renewables in Africa (APRA) is a pivotal initiative launched to address the renewable energy gap in Africa. Introduced at the African Climate Summit in collaboration with President William Ruto of Kenya, APRA aims to promote cooperation among governments, international partners, and the private sector.

La Camera emphasized that APRA was conceived to move beyond ideas and focus on real-life implementation, with concrete, bankable projects that address core challenges like infrastructure development, financing mechanisms, and capacity building. Already, 55% of projects received through IRENA’s platforms originate from Sub-Saharan Africa, and many are being fast-tracked for development.

Policy and Regulatory Frameworks for Private Investment

During the press conference, a critical point raised was the need to create a supportive legal and regulatory environment to attract private sector investments. La Camera explained that traditional markets built around centralized, fossil-fuel-based energy systems need to be redesigned to support the decentralized nature of renewable energy systems.

For renewable energy to thrive, African countries need to develop long-term contracts and policies that reduce risks associated with currency fluctuations and political instability. Additionally, La Camera advocated for sharing best practices and governance models across countries to create environments conducive to private investment.

Financing and the Role of Multilateral Institutions

One of the biggest obstacles to accelerating Africa’s energy transition is financing. Africa’s fiscal space for new investments is limited, and many countries lack the capital necessary to expand renewable energy projects. This reality underscores the need for multilateral financial institutions to step in, de-risk investments, and support infrastructure development, grid connections, and storage solutions.

La Camera likened the need for investment in Africa’s renewable sector to a 'Marshall Plan,' similar to the post-war recovery plan for Europe, which could be a game-changer if it focuses on building essential infrastructure and attracting foreign direct investment.

Capacity Building and Addressing Energy Poverty

Building local capacity is essential to ensuring a sustainable and inclusive energy transition. La Camera emphasized that managing decentralized energy systems requires skilled professionals capable of operating and maintaining renewable energy infrastructure. To address this, IRENA has been working on capacity-building programs that help train the workforce in African nations, preparing them for the green energy jobs of the future.

In addition to skill-building, La Camera highlighted the importance of technology transfer and local ownership of renewable energy projects. African nations must leapfrog traditional energy systems and move directly into modern, clean energy solutions to remain competitive in the global market.

The Future of Africa’s Energy Transition: A Call for Collaboration

La Camera expressed optimism about Africa’s potential to become a global leader in renewable energy. However, he stressed that this future can only be realized through international cooperation. He urged governments, private investors, and multilateral organizations to unite to ensure that Africa can unlock the $150-$200 billion per year needed to meet its renewable energy targets.

IRENA’s efforts, especially through the APRA Investment Forum, will continue to play a pivotal role in facilitating the development of bankable projects and engaging stakeholders. The outcomes of the forum are set to be presented in collaboration with partners like the Global Energy Alliance for People and Planet (GEAPP) at the World Bank Spring Meetings in April 2025. This will be a key moment to catalyze additional support and unlock further funding for Africa’s renewable energy ambitions.

Conclusion

The challenges facing Africa’s renewable energy transition are vast, but so are the opportunities. Through initiatives like APRA, and with the support of IRENA under the leadership of Francisco La Camera, Africa is well-positioned to lead in the global energy transition. However, this will require bold decisions, significant investments, and sustained international cooperation.

IRENA's commitment to ensuring concrete, tangible outcomes from initiatives like APRA reflects the organization’s determination to support Africa's journey toward energy independence and sustainability. By fostering innovation, building capacity, and creating an environment conducive to investment, Africa can leap forward into a future of clean, affordable, and reliable energy.

The APRA Investment Forum has laid a strong foundation, and the next steps will be crucial for transforming Africa's energy landscape. As La Camera remarked, this is not just about renewable energy—it is about equality, inclusion, and ensuring Africa’s place in the global energy economy.