Foreign and Diplomatic

Africa Must Define Its Own Energy Transition, Says African Energy Chamber After Paris Forum

1 Mins read

By Bunmi Yekini

The African Energy Chamber (AEC) has reaffirmed that Africa’s energy future must be shaped by pragmatism, partnership, and progress, following the recently concluded Invest in African Energy Forum in Paris. With 600 million Africans still lacking access to electricity and 900 million without clean cooking fuel, the Chamber stressed that investment remains the cornerstone of the continent’s energy development.

The forum showcased significant projects demonstrating growing investor confidence in Africa’s energy sector — from ExxonMobil’s \$10 billion investments in Nigeria, to TotalEnergies’ multibillion-dollar ventures in Mozambique and Namibia, and Eni’s gas monetization projects in Libya and the Republic of Congo.

However, despite these bold strides, the AEC warns that investment barriers remain high. Delayed approvals, unclear regulations, and heightened political risks continue to leave many energy projects stranded. Nonetheless, countries like Nigeria, Angola, and Ghana are making notable policy improvements — including Nigeria’s Petroleum Industry Act, Angola’s local content reforms, and Ghana’s tax incentives for upstream operations.

The biggest challenge, however, is financing. The Chamber highlighted that rising global interest rates and restrictive green finance standards are making it harder for African governments and companies to access affordable capital. The AEC called for a redefinition of sustainable investment, advocating for the inclusion of natural gas as a viable transition fuel and the recognition of energy access as a social imperative.

To unlock capital, the Chamber urged African governments to improve their creditworthiness, ensure policy consistency, and support private-sector-led energy models. It also emphasized the importance of local capital markets and innovative financing tools in bridging the investment gap.

Energy is not a privilege — it is a foundation for health, education, economic participation and human dignity,” the AEC stated in its declaration. As global discussions around climate and energy continue, the Chamber insists that Africa’s energy transition must be led by Africans and financed on their terms.

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