Post-Conference Reflections on Strengthening Africa’s Energy Supply Chains
The 14–15 November 2024 Energy Institute conference in Lagos Nigeria, themed “Balancing Energy Security and Sustainability in Africa”, was a call to action for sustainably addressing Africa’s energy challenges and unlocking its immense potential. I was privileged to contribute to these critical conversations through my session, “Strengthening Africa’s Energy Supply Chain: Advancing Local Manufacturing and Infrastructure Development.”
The Case for Strengthened Supply Chains
Africa’s energy future—both in fossil fuels and renewables—depends on robust, integrated supply chains. On one hand, there’s an urgent need to pivot towards natural gas as a transitional fuel, given its lower emissions and availability across the continent. On the other, Africa’s renewable energy potential in solar, hydropower, and geothermal remains underutilized. This dichotomy underscores the need for a comprehensive, end-to-end approach to developing Africa’s vast energy potential.
Accelerating the Shift to Gas
Natural gas offers a bridge to cleaner energy systems while addressing Africa’s growing energy demand. Yet, supply chain inefficiencies—from limited refining capacity to inadequate distribution networks—delay this transition. Domesticating the manufacture of critical equipment and materials for the natural gas value chain, upgrading existing infrastructure, investing in modern gas processing facilities, and creating regional pipeline networks are critical steps forward.
Unlocking Renewable Energy Potential
Africa’s renewable resources are vast, especially:
Solar: Untapped solar energy could meet the continent’s energy needs many times over.
Hydropower: The Congo River alone could provide up to 100 GW of 350 GW power potential.
Geothermal: East Africa’s Rift Valley holds up to 15 GW of geothermal potential.
However, over 70% of the technology used to harness these resources is imported. By developing local manufacturing capabilities, Africa can reduce costs, create jobs, and increase energy access.
A Vision for Local Manufacturing
For Africa to fully benefit from its energy resources, it must control key parts of the value chain. Take solar energy as an example: Africa possesses the critical minerals needed for solar panels, batteries, and installation kits. Policies that prioritize maximum in-country value added in mineral extraction, manufacturing, and installation at micro, mini, and utility scales can help transform these resources into self-reliant energy systems.
Such an ecosystem demands:
Investment: Long-term financial commitments to build manufacturing hubs.
Policies: Tax incentives, streamlined regulations, and trade facilitation through initiatives like AfCFTA.
Capacity Building: Training a skilled workforce in energy technologies.
Strategies for Infrastructure Development
Accessing energy resources means overcoming infrastructure bottlenecks. Pipelines, storage facilities, and decentralized mini-grids can connect rural areas to the energy grid while enabling manufacturing clusters. Public-private partnerships (PPPs) have proven effective in financing and executing such projects globally, and similar models can thrive in Africa.
Policy, Innovation, and Long-term Commitment
Achieving energy independence requires an alignment of policy, strategy, and innovation:
1. Green Finance: Mobilizing funds through green bonds and impact investments can accelerate the transition to renewable energy.
2. Technology Transfer: Collaborations with global firms can enhance Africa’s technical capabilities.
3. Integrated Supply Chains: Leveraging AfCFTA to build cross-border networks for raw materials and finished goods.
Concluding Reflections
The Energy Institute conference emphasized that Africa’s energy story is at a pivotal moment. Strengthening energy supply chains isn’t just about meeting immediate demands—it’s about securing a sustainable and prosperous future. With an integrated approach, Africa can harness its resources to power industries, drive development, and assert itself as a leader in the global energy landscape.
The path forward requires political will, transnational collaboration, bold strategies, and unwavering commitment over the long term. Together, we can transform challenges into opportunities and deliver energy solutions that resonate across generations.
Arinze Oduah FCIPS, fACSC, M.CIoD, MCILT
Managing Consultant, Multus Competentia Ltd