The intertwined narrative of industrial progress and energy evolution has been a defining feature throughout history. The industrial revolution, a pivotal era, saw the ascendance of coal as a transformative fuel, shaping the destinies of nations and their inhabitants. The subsequent emergence of petroleum and hydrocarbons further propelled numerous countries and corporations toward unprecedented wealth creation. In this global saga, Africa has played a significant albeit secondary role.
Africa’s narrative is one of abundance, with the continent possessing vital resources such as critical minerals, abundant sunshine, expansive rivers, and rich ecosystems comprising forests and grasslands. As the world transitions into the era of decarbonization, these resources become pivotal ingredients for fostering the Fourth Industrial Revolution, characterized by clean and sustainable energy sources.
In the current landscape, the role of the business community takes on heightened significance. It is crucial to complement governmental efforts aimed at economic empowerment. The objective is to create an environment conducive to achieving both the United Nations’ 2030 Agenda for sustainable development and the African Union’s Agenda 2063, which envisions widespread wealth creation.
The financing strategy outlined in Agenda 2063 revolves around three core dimensions:
(a) Domestic Resource Mobilization: Emphasizing the need for nations to tap into their own resources to fund developmental initiatives.
(b) Intermediation of Resources into Investment: Facilitating the efficient transition of resources into strategic investments that drive economic growth.
(c) Access to Finance Facilitation: Encompassing various mechanisms such as project development funds, viability gap funding, capitalization funds, and support for enhancing the bankability and investment readiness of projects, firms, SMEs, entrepreneurs, and other stakeholders.
In essence, this multifaceted approach seeks to galvanize a collaborative effort between the public and private sectors. Such synergy becomes instrumental in realizing the ambitious goals of sustainable development outlined in the United Nations’ agenda and the African Union’s vision for wealth creation by 2063.
Source: EnergyPolicy