Ghana’s Energy and Green Transition Minister, Dr. John Abdulai Jinapor, has declared that financing represents the most significant barrier to unlocking Africa’s energy potential. He emphasized that coordinated investment is essential for the continent to harness its energy resources. This investment would support technology, innovation, industrial growth, and overall development.
Dr. Jinapor made these comments at the Stellenbosch Business School Alumni Association Thought Leadership Forum in Accra. The forum's theme was “Technology-Powered Africa: Financing Sustainable Energy & Enterprise Transformation.” He explained that Africa’s energy sector faces challenges from high capital costs. These costs are linked to perceived risks, limited investment concentration, and insufficient funding for energy access and infrastructure.
The continent possesses substantial energy resources, including strong solar potential and significant oil and gas reserves. Countries like Nigeria, Mozambique, Algeria, and Senegal hold considerable reserves. Despite this wealth, over half of all Africans still lack access to electricity. This disparity highlights a critical gap between potential and reality. The challenge is particularly acute in clean cooking, where many households still rely on inefficient firewood use. This practice contributes to health problems, deforestation, and waste.
Public and private financiers, including G20-linked institutions and multilateral development banks, mobilized approximately GHS 4.2 billion (US$345 billion) for African energy projects between 2012 and 2021. However, Dr. Jinapor noted that a disproportionate 77% of these funds went to only ten countries. These nations included Egypt, Nigeria, South Africa, Angola, Morocco, Ghana, Uganda, Kenya, and Ethiopia. This concentration leaves many other African nations underserved and struggling to develop their energy sectors.
Dr. Jinapor urged African governments to prioritize strategic and collaborative financing. This approach would help develop sustainable and resilient power systems. It would also deepen regional electricity trade. He stressed that closing the gap between Africa’s energy potential and its current reality requires effective funding structures, strict cost controls, and strong government commitment. He encouraged African governments to manage energy resources as an economic base, not as a social handout burdened by subsidies and overspending.
The Minister called for sustained investment in transmission, distribution, and energy storage infrastructure. He also advocated for stronger cross-border electricity trade. Sharing excess power within the region could help countries improve energy security. During a panel discussion, speakers from academia, finance, and industry reinforced these points. They emphasized that access to capital alone is insufficient. Africa also needs to strengthen its technological and data capabilities to address its development challenges effectively. They cited mobile money as an example of successful technology adaptation to local realities.