Can Africa capitalise on its renewable resources to avoid an energy crisis?
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The demand for renewable energy is on the rise, especially in Africa, a continent rich in minerals that can be used to generate new greener energy solutions. This, if done correctly, could create new employment opportunities, eliminate power supply issues and contribute to the global movement to get carbon emissions to net zero by the year 2050.
Following the news of China’s recent electricity crisis, the rest of the world is on high alert regarding energy security. Extreme weather put a damper on China’s transition to greener energy sources, and the country still relies heavily on coal. This urges other countries to think carefully about the pacing of their energy transition. In South America, Chile’s record-breaking ongoing drought clearly depicts the impact of global warming. According to the latest IPCC report, these extreme conditions (droughts and downpours) are predicted to be more frequent, and humans are to blame through the emission of greenhouse gases.
But what about Africa? Should we expect a crisis like this in the next few years? Or will we somehow make use of our abundance in resources to combat energy poverty? Tawanda Madondo, Absa’s Senior Coverage Banker for Resources & Energy thinks that leaning into the ESG theme could provide countries with investment and employment opportunities for future generations. He also mentions the positive movements in the mining space taking place in the West African regions.
I think in the last couple of years, places like Ghana and the whole West African region really set themselves apart in terms of legislation, policies to entice investment to come into that region. What we’re generally seeing is that a large part of the new projects, the new developments are actually happening out there in the West African region which is very positive for me.Tawanda Madondo, Absa’s Senior Coverage Banker for Resources & Energy
We’ve also seen Tesla’s company valuation rise to over a trillion dollars in only 18 years - historically, the shortest period of time that this has ever been done. Will this motivate the next Elon Musk to make Africa a green energy empire?
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This article first appeared on 702 : Can Africa capitalise on its renewable resources to avoid an energy crisis?