Supercharging Africa’s
sustainable energy future

The African energy market is maturing and becoming increasingly de-centralised as renewable energy projects have surged.

“China's manufacturers are pumping out so many solar panels that the resulting global glut has caused prices to tank. Solar panels — 80% of which are made in China — are so cheap that they're now being used to line garden fences in Germany and the Netherlands”.

One of the most emotive subjects in Africa currently is the energy transition from fossil fuels to cleaner energy, with the mining and resources sectors at the sharp end of the debate.

The urgent need to combat climate change has thrust renewable energy into the global spotlight. As governments, businesses, and individuals grapple with the challenges of reducing carbon emissions, the role of financial institutions in supporting and propelling the renewable energy transition is becoming increasingly prominent.

Absa recently released its annual financial results and from this, there are two important numbers to highlight. The first being that Absa is working on power projects representing over 2000MWs and the second being that the bank has R45bn in new power projects in the pipeline.

With the African minerals and energy sector flourishing with possibility, one can’t help but draw parallels with the late 1880’s when the first gold was discovered on the Witwatersrand – in Johannesburg, South Africa – that kick-started the “Gold Rush”.

While South Africans are understandably frustrated by the operational issues at Eskom and the impact it is having on business and quality of life, it is important to stop and appreciate that real progress is being made.