As countries deliberate on diversifying their energy mix to align with global trends on climate change, they have to find ways to build new value chains to address the negative impacts of the shift away from fossil fuels while simultaneously developing more resilient economies.
Managing the human story of the transition, which includes communities stranded when coal mines close, is key to getting buy in for a changing energy mix. Without this, the process may not be politically sustainable.
Climate change brings with it many challenges, but there are also opportunities that can be leveraged to build more resilient economies. Also needed are strategies to empower Africans to develop their own continent, including local content requirements and industrial policies to drive value addition of local resources.
The just energy transition will not be an easy journey in Africa, given the current dependence on coal, oil and gas in Africa, which accounts for up to 80 of current energy generation and, by some estimates, will continue to account for 60 of the energy mix by 2040.
However, the shift to renewable energy in Africa is not just about reacting to international pressure but because it makes sense. It is helping to address the challenge of energy access that has seen up to half of Africas population without power and is allowing countries to generate cheaper energy. The cost of wind, solar and battery power has gone down by 80 over the past decade.
