7. Building Africa’s renewable energy future: Conclusion and policy recommendations

The African Union’s Agenda 2063 sets out the goals of mitigating climate change, broadening the policy space for sustainable development, eradicating poverty within a generation and building shared prosperity through social and economic transformation. Universal access to energy and transition to clean, affordable and sustainable energy is essential to achieving these goals. There has been some progress over the last decade, but there is still more to do as energy poverty is high and investments in renewable have been relatively low and distributed unevenly across the African continent, concentrated in a handful of countries.

An inclusive and just energy transition can only be achieved by bringing under-invested countries into the fold. This requires the mobilisation of resources on an unprecedented scale while overcoming unique contextual barriers through strong policy and institutional underpinnings.

In addition, recent disruptions, whether caused by Covid-19 or the climate, have challenged the resilience of the energy transition. In the decade ahead, boosting the resilience of the energy transition through regional approaches will become increasingly critical. All stakeholders – from national governments and regional institutions to multilateral development partners – have a part to play in delivering a balanced, resilient transition that continues to speed up progress regardless of disruptions and opposition.

National government: Domestic actors have a role to play in aligning their policy and regulatory frameworks with regional requirements. Specific interventions include support with domestic resources (land, finance, inputs) to encourage regional infrastructure linkages and appropriate legal measures to encourage local and foreign entries into the green sector.

Free Trade Area Secretariat and AU): Gains and burdens, from a regional approach to the energy transition, are not expected to be shared equitably. A framework for compensating possible losers will be crucial to ensure broader support for the renewable energy transition.

Development partners (EU): A shift in development assistance to encourage a regional approach in transiting to green energy in Africa is required when regional solutions prove more efficient and cost-effective.