DR KGOSIENTSHO RAMOKGOPA MINISTER OF ENERGY AND ELECTRICITY | REPUBLIC OF SOUTH AFRICA KEYNOTE ADDRESS TO THE AFRICA ENERGY WEEK “Invest in African Energies: Energy Growth through an Enabling Environment”
DR KGOSIENTSHO RAMOKGOPA
MINISTER OF ENERGY AND ELECTRICITY | REPUBLIC OF SOUTH AFRICA
KEYNOTE ADDRESS TO THE AFRICA ENERGY WEEK
“Invest in African Energies: Energy Growth through an Enabling Environment”
05 November 2024 | Cape Town, RSA.
Introduction and Context
Honourable Delegates, Distinguished Guests, Ladies and Gentlemen,
This morning, I am most obliged to invoke the glorious counsel of Africa’s great luminary, Kwame Nkrumah, in his assertion that as a Continent, “We face neither East nor West; we face forward."
Certainly, today, Africa’s path forward lies in seizing control of our energy destiny. Our continent’s vast resources, rich potential, and resilience make us capable not just of fuelling our homes and industries but of powering a new African century. But this will require unity of purpose, a commitment to innovation, and a collective resolve to harness Africa’s energy to serve African needs.
Esteemed colleagues, distinguished guests, and partners in Africa s journey toward energy resilience, it is an honour to address you today at Africa Energy Week, an occasion that brings together leaders, experts, and advocates dedicated to a common purpose: empowering Africa to take control and harness our energy future. As Kwame Nkrumah envisioned, Africa’s journey is not merely about emulating paths set by others, but about building an African vision that recognises energy security as a foundation for our collective growth and shared prosperity.
The Political Economy of Energy and Africa’s Future
Energy is not just a commodity; it is a keystone for development. The political economy of energy shapes every dimension of life on our continent, from social progress and economic growth to industrialisation and job creation. The availability, accessibility, affordability, and sustainability of the energy landscape must be defined as part of our capacity to address poverty, inequality, and underdevelopment. This is what I refer to as our energy quadrilemma.
Today, Africa faces the complex challenge of transforming its energy systems while safeguarding the principles enshrined in the Africa 2063 Agenda, a blueprint that envisions an integrated, prosperous, and peaceful Africa driven by inclusive growth and sustainable development.
Energy is critical to realising each of the seven aspirations outlined in the Africa 2063 Agenda, but two are especially relevant to our work here today:
Aspiration 1: A Prosperous Africa Based on Inclusive Growth and Sustainable Development
Aspiration 6: An Africa Whose Development is People-Driven, relying on the Potential Offered by African People, Especially Its Women and Youth
Achieving these aspirations requires us to rethink our energy policies and investment frameworks through a developmental lens. Africa has been resource-rich yet power-poor for too long, with our vast reserves of minerals, oil, gas, and renewables untapped or under-leveraged. Addressing this disconnect requires structural reforms and substantial investments to build resilient, inclusive energy systems that empower African communities and industries.
The Energy-Development Nexus and Its Impact on Agenda 2063
The challenge of energy access is not simply about expanding supply; it is fundamentally about ensuring that energy becomes a transformative asset for all Africans. Energy poverty remains widespread, and approximately 600 million Africans lack access to electricity. This deprivation hinders economic participation, affects health outcomes, and limits educational opportunities, especially for women and youth in rural areas. By tackling energy poverty, we do not merely light homes and power businesses; we lay the groundwork for an equitable society where opportunity is within reach for every citizen.
The question before us is how to accelerate energy security while addressing structural inequalities. Africa has the potential to lead the world in renewable energy and innovative energy solutions. But our path to energy transformation must reflect the values of equity and inclusiveness at the heart of the Agenda 2063 vision. As we engage in this critical week of discussions and partnerships, let us remain committed to building energy systems that respect our environment, create dignified jobs, and fuel African industries——safeguarding our independence and self-determination.
Harnessing Africa’s Renewable Energy Potential
Africa’s potential for renewable energy is unmatched globally. The continent is rich in diverse renewable resources, each offering a path toward sustainable growth that is less dependent on fossil fuels and more aligned with global climate commitments. These renewable sources include:
Solar Energy: With vast stretches of land bathed in sunlight year-round, Africa has some of the highest solar irradiation levels in the world, especially across regions in the Sahara and Sub-Saharan Africa. Solar energy has the potential to power communities, businesses, and industrial zones, especially in off-grid and rural areas.
Wind Energy: From the coastal winds of Egypt to the strong inland gusts in Kenya and Ethiopia, Africa’s wind corridors hold immense potential for generating clean electricity. Expanding wind energy capacity offers not only a path to sustainability but also an opportunity for job creation in turbine manufacturing and maintenance.
Hydropower: Africa has significant untapped potential, especially in countries with major rivers such as the Congo, Nile, and Zambezi. Hydropower projects, when sustainably managed, can provide baseload power to support industrialisation and rural electrification, helping reduce energy costs for industries. I should pause here to say South Africa and the DRC are currently party to a bi-national commission. The BNC seeks to drive the necessary investments to unlock the potential of the great Congo River to support energy production.
Geothermal Energy: The Great Rift Valley, particularly in Kenya and Ethiopia, is home to vast geothermal resources. Geothermal energy offers a reliable, low-emission power source that can bolster energy resilience and security in East Africa and beyond.
Biomass and Bioenergy: Africa's vast agricultural and forest resources also allow it to harness bioenergy. This includes converting agricultural waste into power, which reduces waste and provides sustainable energy, especially in rural and semi-urban areas.
The Role of Natural Gas as a Transitional Energy Source
Natural gas dominates Africa’s power generation mix with a 41% share, followed by coal, hydro and oil. While not a renewable resource, natural gas is critical as a transitional energy source on Africa’s path toward a sustainable and decarbonised energy future. Africa has significant natural gas reserves, particularly in Nigeria, Mozambique, Tanzania, and Senegal. Africa is the fourth largest region with proven gas reserves, accounting for 8% of the global gas reserves. Africa’s gas production is on track to reach 253 billion cubic meters in 2024, representing 7% of the worldwide gas production.
After contracting in 2022 due to geopolitical developments, the global pipeline gas trade is rebounding this year, recording a 3% increase in 2024 thus far. African countries export around 44 billion cubic meters of pipeline gas annually, which accounts for 7% of the global total. The most extensive trade route by far (80%) is Algeria to Europe, which highlights that the operating gas pipelines are primarily oriented towards inter-regional gas exports, with a notable lack of intra-regional gas pipeline infrastructure inhibiting domestic gas consumption on the continent.
However, a lack of intra-regional gas pipeline infrastructure inhibits domestic gas consumption on the continent. The expansion of the regional gas pipelines offers opportunities for emergent domestic gas consumption, as well as export potential
Moreover, natural gas can serve as a cornerstone for industrialization by supporting industries that require high energy intensity, such as manufacturing and processing. This transitional approach not only aids in economic growth but also supports Africa’s commitment to the global decarbonisation agenda by reducing reliance on higher-emission fuels. Natural gas, if strategically developed and utilized alongside renewables, can help Africa balance its immediate developmental needs with long-term climate goals, contributing to a just and equitable energy transition across the continent.
Renewable Energy as a Catalyst for Industrialization and Critical Mineral Beneficiation
Africa’s renewable resources offer a solution to energy poverty and a strategic advantage in supporting local industries and value-added activities. If coupled with the right policies, the transition to renewable energy can drive African industrialisation by enhancing the beneficiation of critical minerals essential for both the renewable and high-tech industries globally. Africa is abundantly endowed with several such minerals, including:
Cobalt: Essential for lithium-ion batteries used in electric vehicles and renewable energy storage, cobalt is primarily mined in the Democratic Republic of Congo (DRC). The beneficiation of cobalt could allow Africa to play a significant role in the battery manufacturing supply chain.
Lithium: This critical mineral, essential for batteries, is available in Zimbabwe, Namibia, and Mali. By developing lithium processing industries, Africa could add value to raw materials and reduce dependency on foreign processing.
Platinum Group Metals (PGMs): South Africa is the world’’s largest platinum producer, vital for hydrogen fuel cells and various industrial applications. Processing PGMs locally could bolster Africa’s position in clean energy technologies and export markets.
Nickel and Manganese: Both essential for high-performance batteries, Africa holds rich reserves of these minerals in South Africa, Botswana, and Madagascar. Beneficiating nickel and manganese locally would allow Africa to contribute to and benefit from the global shift to electrification and decarbonisation.
Graphite: Graphite is used in battery anodes. Deposits are found in Tanzania and Mozambique. With the growing demand for electric vehicles, local processing of graphite can support both domestic industry and exports.
Rare Earth Elements (REEs): Vital for wind turbines, electric vehicle motors, and various electronics, REEs are present in countries like Burundi, South Africa, and Malawi. Investing in REE beneficiation will enable Africa to contribute to global supply chains for emerging green technologies.
By developing industries to process and add value to these minerals, Africa can reduce its reliance on exporting raw resources and begin capturing greater returns domestically. This strategy aligns with Agenda 2063’s vision of inclusive growth and job creation, promoting a model where African resources fuel African industries, creating a robust industrial base and sustainable, dignified employment across the continent.
This path also strengthens Africa’s geopolitical positioning in the global clean energy transition, making the continent not just a provider of raw materials but a central player in the entire value chain. Industrialising through mineral beneficiation, supported by renewable energy, can lay the foundation for economic diversification and resilience, ensuring that Africa remains a competitive and dynamic partner in the global economy.
South Africa’s G20 Presidency: Advancing Africa’s Energy Agenda
The International Energy Agency (IEA) projects that energy demand in Sub-Saharan Africa (SAS) will increase by a third between 2020 and 2030, while the International Renewable Energy Agency (IRENA) forecasts that Africa's energy demand could double by 2040. McKinsey & Company projects that Africa's energy needs could double by 2050 and that the number of people without access to electricity could increase from 600 million to 1.2 billion.
As South Africa takes up the G20 Presidency in 2025, we are positioned to champion Africa’s energy priorities on a global platform. Africa faces both unprecedented energy challenges and remarkable opportunities. Notwithstanding the immense renewable resources and critical minerals essential for the world’s energy transition which I referred to earlier, millions of Africans are still without access to reliable energy. In the resolution of the African energy challenge, our intervention must solution for an energy sector that is underpinned by availability, accessibility, affordability, and sustainability, whilst addressing the aspirations of Agenda 2063 and the global Sustainable Development Goals (SDGs).
A just energy transition for Africa must accelerate sustainable growth while considering African economies' unique challenges. South Africa will advocate for energy policies that bridge the development gap, recognising the continent’s need for clean energy and affordable access. In leading the G20, South Africa will focus on strategic interventions to address Africa’s unique energy needs and support a resilient, inclusive future.
African Interconnectivity and developing an Energy Pool are essential to advancing the African agenda under South Africa’s G20 Presidency. Strengthening cross-border energy infrastructure and enhancing regional cooperation will promote efficient energy sharing, reduce reliance on fossil fuels, and support the integration of renewable energy sources across the continent.
Further, interconnected energy grids will improve energy access and affordability and foster energy security and resilience on the continent. These efforts will contribute to a stable and sustainable energy transition for African nations, align regional goals with global climate commitments, and ensure inclusive growth across the continent. Policy harmonisation across AU member states is critical to these objectives to foster a unified energy market.
If championed by South Africa, the African Union, and our BRICS Partners in the G20, these interventions will position Africa as an active participant in the global energy transition while addressing the continent’s development needs, driving sustainable growth, and contributing to the goals of Agenda 2063 and the Sustainable Development Goals.
Through our G20 leadership, South Africa is committed to championing an African energy agenda that is bold, just, and rooted in an African value system. Together, let us light up Africa with power and the promise of progress, sovereignty, and sustainable prosperity for every African citizen.
Conclusion
As I conclude, I am reminded of Julius Nyerere's words: “Freedom and development are as essential to man as air, and without them, he cannot breathe” Africa stands on the brink of a transformative era, one where energy will no longer be a barrier to development but a bridge to our continent’s aspirations. We can redefine our energy future through collective resolve, innovative partnerships, and a commitment to sustainable growth.
As South Africa leads the G20, we are dedicated to championing an African energy agenda that addresses our challenges, harnesses our resources, and reflects our vision for self-reliance and prosperity. Let us seize this moment to build an energy-secure Africa where every community is empowered, every economy is strengthened, and our shared commitment to the future is unwavering. Together, we can light up Africa, not just with power, but with the promise of a brighter, more equitable future for all.
I thank you.
Dr Kgosientsho Ramokgopa
MINISTER OF ELECTRICITY AND ENERGY
REPUBLIC OF SOUTH AFRICA
