Ghana's Minister of Finance, Dr. Cassiel Ato Forson, has declared that Africa cannot depend solely on public budgets to finance its energy infrastructure. He stressed the urgent need for alternative funding sources to meet the continent's growing energy demands. This call comes as nearly 600 million Africans still lack access to electricity, a major barrier to industrialisation.
Dr. Forson advocated for innovative financing mechanisms to mobilise capital. These include guarantees, blended finance, local currency funding, and deeper capital markets. He also highlighted the importance of credible public-private partnerships. Such measures are essential to bridge the substantial energy financing gaps and support Africa's industrial transformation.
This statement fits into the broader narrative of Africa's economic development challenges and opportunities. The continent currently attracts only about two per cent of global clean energy investment. This low figure makes industrialisation difficult without addressing both energy and financing deficits. Ghana's recent economic progress, including a significant decline in inflation, demonstrates the importance of stability. This stability provides a foundation for attracting investment and fostering industrial growth.
“Public budgets cannot carry this investment alone,” Dr. Forson stated at the 2026 Future of Energy Conference (FEC) in Accra. The conference, organised by the Africa Centre for Energy Policy (ACEP), focused on “Powering Africa's Industrial Transformation: Energy Systems for Value Addition and Competitiveness.” He urged policymakers to leverage improved economic environments to attract private capital, expand production, and create jobs. He added, “Stability is obviously not the destination. It is the launchpad for transformation.”
The implications for Ghana and the wider continent are significant. Policymakers must create an environment that attracts long-term private investment into energy infrastructure. These investments must also generate jobs, promote value addition, and strengthen productive sectors. Dr. Forson stressed the need to break Africa's cycle of exporting raw materials and importing finished products. He cited examples like exporting cocoa but importing chocolate, and exporting bauxite but importing aluminium products. This pattern risks repeating with critical minerals for batteries.
Macroeconomic stability remains crucial for attracting investment and sustaining industrial growth. Issues like inflation, exchange-rate volatility, high interest rates, unsustainable debt, and fiscal indiscipline increase the cost of doing business. Ghana's experience shows that restoring stability is a vital first step. The Economic Affairs Officer at the United Nations Economic Commission for Africa (UNECA), Dr. Marit Kitaw, also contributed to the discussion. She introduced “development shoring,” a concept that directs investment towards locations generating the greatest development impact. This approach ensures more value remains on the continent from critical minerals and energy infrastructure. It prioritises local processing, component production, and green manufacturing. This fosters resilient regional industrial ecosystems and captures greater value from Africa's mineral wealth. Partnerships should extend beyond raw material purchases to include joint ventures and technology transfer. The central question for any partnership, she noted, should be: what productive capability and lasting development benefits will remain in Africa?