Electricity and Energy Minister, Kgosientsho Ramokgopa, said in his keynote address at the Africa Energy Week in Cape Town that South Africa will use its G20 Presidency to advance Africa’s energy agenda.
“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” he said.
The Group of Twenty (G20), is an intergovernmental economic forum comprising 19 countries and two regional unions – the European Union (EU), and recently the African Union (AU). It accounts for 85% of the global economy, 75% of world trade and two-thirds of the global population.
The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK and the US.
South Africa is expected to take over the presidency of the G20 from 1 December 2024 for a one-year term. This will be the first-ever G20 meeting on African soil. It provides an important opportunity to elevate the continent’s developmental priorities and its role in shaping the global economic agenda, which is why the theme is ‘Fostering solidarity, equality, and sustainable development’ aimed at addressing critical global challenges, with a strong focus on Africa’s development.
The International Energy Agency (IEA) projects that energy demand in Sub-Saharan Africa (SSA) 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.
Ramokgopa highlighted that given Africa’s resource endowment, it could address this need to electrify the continent.
“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,” he said.
Although not a renewable energy source, Ramokgopa said there was a role for natural gas as a transitional energy source from fossil fuels to renewables.
“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,” he said.
Ramokgopa cautioned that a lack of intra-regional gas pipeline infrastructure inhibits domestic gas consumption on the continent, so the expansion of the regional gas pipelines offers opportunities for emergent domestic gas consumption.
This would promote industrialisation by supporting industries that require high energy intensity, such as manufacturing and beneficiation of natural resources.
“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 utilised 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,” he said.
BUSINESS REPORT
