Empowering Africa's future at Africa Energy Forum 2024

Johannesburg, 25 June 2024 - With the international community collectively shifting towards transitioning fuels and a green economy and significant investment into renewable energy, Africa's energy landscape is experiencing a recalibration away from fossil fuel investments towards less carbon intensive industries. The Development Bank of Southern Africa (DBSA), a development finance institution with an investment footprint in Southern Africa and the rest of Sub-Saharan Continent, will participate in the 26th edition of the Africa Energy Forum (AEF) in Barcelona, Spain. AEF is a forum of decision-makers in African energy, organised to form partnerships, identify opportunities, and advance the energy industry. African governments, utility companies, regulators, international development financing organisations, commercial banks, and professional services will be present at this 3-day conference.

Africa's Energy Landscape - challenges and opportunities

Notwithstanding, its historical backlog in infrastructure, Africa's energy infrastructure potential holds significant opportunity. The continent boasts rich natural renewable energy resources, including solar, wind, and hydroelectric power. However, many African countries face unreliable electricity supply and require large capital investment from the market to be effectively harnessed.  Additionally, inadequate infrastructure to support and access these resources effectively, remains a challenge., Limited grid connectivity and high transmission losses further demands modernising and expanding energy network infrastructure and is key to meeting growing energy demands, driving economic development, and improving the quality of life.

Efforts are underway to address these issues, with increasing emphasis on sustainable and innovative financing solutions to build resilient, efficient, and inclusive energy systems across Africa.

DBSA's role and vision

"The Africa Energy Forum 2024 continues to provide a crucial platform for the DBSA to collaborate with key players in the energy sector and share our broad engagement in the sector including innovations that allow us to fund early-stage technology in the energy transition sector, develop alternative green corridors and partnering with developers and investors to fund renewable energy projects,"

As a leading financier of renewable energy, the DBSA is committed to supporting the entire energy supply value chain from energy generation to transmission and distribution projects. This commitment is underpinned by a just energy transition that aspires to ensure that the transition to meet international climate goals take into account inclusivity of those most impacted by the departure from fossil fuels to a green economy.” said Catherine Koffman of the Development Bank of Southern Africa. "Our focus is to fast-track sustainable energy development that not only meets current demands but also ensures future growth and prosperity across Africa."

Key sessions and discussions

From 25-27 June 2024, several key sessions will be led by stakeholders from the DBSA, including:

1. Ministerial Roundtable (June 25) - Catherine Koffman, Group Executive: Project Preparation, will host a discussion on balancing Africa’s energy needs with global climate goals. This session will emphasise the importance of scaling up projects and investment while evaluating the impact of decarbonisation policies on private sector participation. The roundtable will also question if global climate goals might inhibit Africa’s development efforts.
2. Transmission Infrastructure (June 26) - Mpho Mokwele, Group Executive: Transacting, will lead a discussion on the critical role of transmission infrastructure in unlocking capital for energy generation. The session will highlight successful investment models, advancements in battery storage systems, and power pool initiatives to enhance power trade across borders.
3. Mitigating Currency Risk (June 26) - Mohan Vivekanandan, Group Executive: Client Coverage, will present new insights into mitigating currency risk in financing Africa’s energy transition. He will propose innovative financial mechanisms and showcase the AfDB’s analysis on potential commodities for these mechanisms.
4. Challenges in Mining Investments (June 27) - Vivekanandan will address challenges in mining investments, particularly the impact of infrastructure limitations and the necessity of critical energy investments to fully harness Africa's mineral potential. This session will also explore emerging investment initiatives, and discuss whether local banks are better suited to manage these projects and risks.

With the backdrop of COP28, where critical climate action and energy transition strategies were discussed, the DBSA aims to integrate these global lessons into the African context. The forum will offer an opportunity for the DBSA to engage with industry leaders, policymakers, and investors to explore collaborative solutions that address the continent's energy challenges.

The Africa Energy Forum 2024 is set to be an important event in shaping the future of Africa's energy sector. By bringing together key stakeholders and focusing on innovative financial solutions and strategic investments, the DBSA aims to drive forward sustainable development and infrastructure growth across the continent. The forum represents a significant step toward unlocking Africa's energy potential and ensuring a prosperous future for its people.

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