Investing in Africa’s renewable energy space

The transition towards adoption of renewable energy for Africa will largely be driven by more investments in infrastructure for the continent to achieve a just energy transition. CNBC Africa’s Fifi Peters spoke to Moussa Benyoucef, Director for EMEA at Deloitte, who highlighted the critical need for access to energy in Africa. Benyoucef emphasized the challenges faced by the continent, with over 600 million people lacking access to electricity and more than 800 million unable to access clean cooking facilities. These deficiencies not only compromise health but also have far-reaching impacts on education and economic development. Despite these obstacles, Benyoucef pointed out that Africa possesses abundant natural resources, including oil, gas, hydro, solar, and wind energy, as well as raw minerals essential for the development of new technologies. He stressed the importance of striking a balance between traditional fossil fuels and renewable energy sources to ensure universal access to reliable energy. By leveraging renewables, Benyoucef believes Africa can achieve over 95% access to energy across the continent. However, he cautioned that the transition to cleaner energy must also focus on industrialization and economic diversification. Innovations in gas utilization, such as using it for power generation and industrial purposes, can drive revenue and development. Benyoucef highlighted the necessity of addressing infrastructure challenges to efficiently distribute generated electricity to households, especially in rural areas. Additionally, he underscored the importance of implementing off-grid solutions to connect remote communities to the energy grid. Recognizing the urgency of both reducing carbon footprints and expanding energy access, Benyoucef emphasized the significance of embracing a diversified energy mix in Africa. The key, he suggested, lies in combining fossil fuels with renewables to cater to the continent's diverse energy needs. Benyoucef also discussed the varying energy landscapes in different African countries, emphasizing the need for tailored approaches based on each nation's resources and requirements. For instance, countries rich in oil and gas like Nigeria and Angola face challenges in balancing their resources with renewable investments. In contrast, North African nations, while already having high electricity access, are focusing on transitioning from fossil fuel-based power generation to renewables. Benyoucef noted the importance of achieving a harmonious blend of energy sources to address Africa's energy dilemmas. He stressed that the infrastructure development and investments in the midstream sector, particularly in gas, play a crucial role in facilitating energy transportation and utilization. The Deloitte director highlighted the growing global demand for gas as a transition fuel, leading to increased investments in gas-related infrastructure and exports. Noting the heightened interest in gas from both domestic industrialization needs and international markets, particularly Europe, Benyoucef emphasized the importance of capitalizing on gas reserves to drive economic growth and energy security. He called for a strategic focus on enhancing energy transmission systems to ensure efficient distribution and highlighted ongoing investments in off-grid solutions to tackle energy access challenges in remote areas. Benyoucef's insights shed light on the complex energy landscape in Africa and underscore the significance of a balanced approach to energy transition, combining traditional resources with renewables to drive sustainable development and universal energy access.