The Covid-19 pandemic and global economic shocks are testing the resilience of the energy sector in countries across Africa. While the outlook remains uncertain, these shocks are certain to have major and varied implications for the development of the continent’s energy sector. Assessing the nascent impacts across the energy sector can help inform the policies and define the actions that will pave the way to economic recovery.
The immediate impacts confronting policy-makers across the continent are varied. For some, the availability, security and reliability of power systems is putting at risk an effective response to the health crisis, underscoring once again the importance of universal energy access. Confinement policies and the consequent drop in energy demand is increasing pressure on power systems, calling into further question the financial health of state-owned utilities that were already under financial stress. And for others, the disruption to global oil and gas markets has delivered a sudden and sharp drop in export revenue streams. The resulting financial constraints mean that new investments may face delay or cancellations. These conditions of uncertainty create risks and competition for tightening finance, with potential security and sustainability challenges in the longer term.
Setting priorities is vital to ensure action on much-needed energy sector investments, which can stimulate broader economic growth.
Opportunities may also arise to rethink African countries’ future energy systems and market structures. In this challenging environment, governments will need to ensure that momentum towards SDG 7 is not lost while they are addressing significant immediate crises. It will be important to consider investment frameworks that help attract the necessary investment to the energy sector in times of need. Concerted action and international support can help countries respond to this crisis.
The IEA’s Africa Energy Outlook analysis, published in 2019, has already shown what Africa’s energy future could look like. To sustain Africa’s economic transformation and deliver energy access for all, we have to ensure energy investments in Africa remain a priority.
Views shared during this Africa Ministerial roundtable will feed into IEA’s enhanced work with African partners as well as the IEA Clean Energy Transitions Summit that will take place on 9 July 2020.
• To take stock of the effects of Covid-19 and its economic reverberations across the energy sector in Africa;
• To explore the vital role of energy investments to Africa’s economic recovery;
• To share views on what actions can be taken to ensure that energy investments in Africa remain a priority, and clarify the role that the IEA can take to support these efforts.
• H.E. Mr. Mouhamadou Makthar Cissé, Minister of Petroleum and Energy, Senegal
• Dr. Fatih Birol, Executive Director, International Energy Agency
• H.E. Mr. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa
• Ms. Amina J. Mohammed, Deputy Secretary-General, United Nations
• H.E. Mr. Dona Jean-Claude Houssou, Minister of Energy, Benin
• H.E. Mr. Abdourahmane Cissé, Minister for Petroleum, Energy and Renewable Energy, Cote d’Ivoire
• H.E. Mr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, Egypt
• H.E. Mr. Frehiwot Woldehanna, State Minister for Energy, Ethiopia
• Ms. Ditte Juul Jørgenson, Director-General for Energy, European Commission
• H.E. Mr. Fafa Sanyang, Minister of Petroleum and Energy, Gambia
• H.E. Mr. Andreas Feicht, State Secretary, Federal Ministry for Economic Affairs and Energy, Germany
• H.E. Mr. John-Peter Amewu, Minister of Energy, Ghana
• H.E. Ms. Alessandra Todde, Under Secretary of State of Economic Development, Italy
• H.E. Mr. Claude Turmes, Minister for Energy and Spatial Planning, Luxembourg
• H.E. Mr. Aziz Rabbah, Minister of Energy, Mines, and Sustainable Development, Morocco
• Eng. Mr. Pascoal Alberto Bacela, National Director for Energy, Ministry of Energy and Mineral Resources, Mozambique
• Hon. Mr. Tom Alweendo, Minister of Mines and Energy, Namibia
• H.E. Ms. Kitty van der Heijden, Vice-Minister for International Cooperation, Netherlands
• H.E. Mr. Goddy Jedy Agba, Minister of State for Power, Nigeria
• Hon. Dr. Kandeh Yumkella, MP, Sierra Leone
• Sir Simon MacDonald, Permanent Under-Secretary and Head of the Diplomatic Service, Foreign and Commonwealth Office, United Kingdom
• Thomas (T.L.) Cubbage, Deputy Under-Secretary for Science, Department of Energy, United States
• Hon. Francis R. Fannon, Assistant Secretary for the Bureau of Energy Resources, Department of State, United States
International organizations and private sector
• Mr. Bertrand Walckenaer, Deputy CEO, AFD
• H.E. Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union
• Mr. Claudio Descalzi, CEO, ENI
• Mr. Abebe Aemro Selassie, Director of the Africa Department, IMF
• Mr. Francesco La Camera, Director-General, IRENA
• Mr. Hiroto Kamiishi, Deputy Director-General and Group Director for Energy and Mining, JICA
• H.E. Mr. Mohammad Sanusi Barkindo, Secretary General, OPEC
• Mr. Mark Carrato, Acting Coordinator, Power Africa
• Ms. Damilola Ogunbiyi, CEO & UN SRSG for SEforALL
• Dr. Vera Songwe, Under-Secretary-General of the United Nations, and Executive Secretary, United Nations Economic Commission for Africa (UNECA)
• Ms. Frannie Leautier, Senior Partner, SouthBridge Group
• Mr. Riccardo Puliti, Global Director, Head of the Energy and Extractive Industries Global Practice and Regional Director, Infrastructure for Africa, World Bank