Dr. Matthew Opoku Prempeh, the Energy Minister of Ghana, has proposed the establishment of an African Energy Bank which will be the citadel for the financing of Africa’s energy projects in the wake of the energy transition.
Speaking at the panel session of the ongoing 2023 African Energy Week on the theme “Global Energy Security; The imperative of African Energy Development” the Minister said the energy transition conversation from an African perspective is confronted with various challenges.
According to the minister, African Energy Bank will be in a pole position to address the militating factors such as; limited technological capacities, low productivity, weak capital markets and high input costs. “The Bank will understand the peculiar circumstances of the African continent and will, therefore, support our efforts,” he said.
In addition to this, Dr Opoku said Africa is particularly saddled with high energy deficit, inadequate human capital and lack of green energy infrastructure. Deliberate efforts, he intimated, must be put in place to address these challenges.
“Currently, about 600 million people are without access to electricity in Africa. Without a clear and purposeful drive towards cheaper electricity, the figure will rise to 800 million by 2030, whilst the continent sits on what shall effectively become stranded assets. Our position is that we cannot starve in the midst of plenty.
“Ghana is of the uncompromising view that an energy transition plan worth its salt must take into perspective all the sectors of our economies with deliberate efforts channelled at achieving decarbonisation, energy security, access and efficiency to accelerate industrialization and yet lower carbon dioxide emissions and energy demand.”
Dr. Matthew Opoku Prempeh
The minister called for continues pitching of a narrative for the linkages between upstream and downstream to be established on the continent to ensure value maximisation and retention.
“Expanding the refining capacity and storage for crude oil and petroleum products and providing the appropriate infrastructure for petrochemical production and transportation of gas and petroleum products will to all intents and purposes provide these linkages”
Dr. Matthew Opoku Prempeh
Oil And Gas Exploration And Production
The Manhyia South lawmaker stressed that oil and gas exploration and production will be continued in the next few decades to ensure the availability of natural gas for these purposes. “We are cognisant of the implications of hydrocarbons on the environment and have already included Carbon Capture and Storage and other green interventions in our Energy Transition Framework to duly take care of emissions” he added.
Meanwhile, the roundtable featured a diverse lineup of industry leaders who examined how Africa can leverage its energy markets to achieve its UN Sustainable Development Goals and COP28 objectives by 2030.
Global energy and climate policies, impacted by successive shocks, now pose risks to energy security and just transitions. As such, the roundtable highlighted dialogue and collaboration as essential strategies to mitigate trade and investment hurdles, ensuring market predictability and affordability for a sustainable future.
The roundtable went on to discuss Africa’s pivotal role in global supply chains and its energy landscape, with the speakers shedding light on Africa’s energy challenges and how the continent can seize opportunities in the energy transition.
“We kicked off our global energy solutions last year at AEW 2022 and we wanted it to be a review of the lessons learned from the energy crisis, but also what’s working and not working in terms of the energy transition,” stated Joseph McMonigle, Security General at IEF.
“The singular linear, one-size-fits-all approach to net-zero is outdated and misguided, and what we need is a multi-dimensional approach that implements multiple starting points and pathways that allows countries to use their capital resources and expertise.”
Joseph McMonigle
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