Africa’s energy development is not about potential: it’s about securing the requisite finance to transform energy systems and monetize resources. With an annual energy investment gap of between $31 billion and $50 billion, unlocking large-scale energy projects will hinge on the ability to de-risk capital and create an environment where long-term private investment can thrive. The upcoming G20 Africa Energy Investment Forum – taking place November 21 in Johannesburg – will tackle this very topic, with a session taking place on De-risking Capital and Removing Barriers to Investment.
The session will feature Rene Awambeng, Founder and Managing Partner, Premier Invest; Dele Kuti, Global Head of Energy & Infrastructure, Standard Bank; Samira Mensah, Managing Director, Regional Head Africa & Country Head South Africa at S&P Global Ratings; and Lida Preyma, Founder & CEO, Cēlandaire Capital as speakers. By bringing together financial leaders, investors and risk specialists, the forum will address the structural challenges that continue to impede project development on the continent, charting new pathways for financing projects in Africa.
Despite the growing potential across Africa’s energy landscape, access to financing has become an even greater challenge for nations. Global pressures to transition away from oil and gas have seen international energy companies reallocate their capital, while policy and regulatory uncertainty, project delays and bureaucracy continue to impact investor confidence. Infrastructure gaps, high operating costs and currency volatility have also made long-term investments less attractive. As a result, investors are becoming increasingly more cautious with their spending, highlighting the need for major reforms, innovative financing structures and strong political across the African energy sector.
Innovative finance is already beginning to gain traction across the continent. Projects are leveraging blended finance models to reduce risk and unlock private investment. Examples include the East African Crude Oil Pipeline which has already raised $2 billion in equity financing from its developers. The project is now turning towards debt financing, seeking $3 billion to accelerate development. Governments are also exploring public-private partnership (PPP) models to reduce state burden and attract private capital, alongside traditional production sharing contracts, green bonds and climate finance. Morocco’s Noor Ouarzazate Solar Complex – one of the world’s largest solar facilities – was developed through a PPP model, supporting by the World Bank.
As nations pursues alternative financing sources, the G20 Forum will explore how innovative financial instruments, policy frameworks, and risk mitigation strategies can de-risk projects and accelerate bankable energy and infrastructure development across Africa. The session on capital de-risking will outline how project structures, off-take agreements and guarantee mechanisms can be designed to improve creditworthiness and attract long-term private capital. Speakers will explore what blended-finance tools, local-currency solutions and innovative capital instruments are most effective in mobilizing both debt and equity for African energy and infrastructure projects and how political risk insurance, sovereign support structures and FX-hedging mechanisms can be deployed to mitigate macro-risk and secure financing in challenging market environments?
“If we want to unlock meaningful investment into African energy and infrastructure, we must reimagine how projects are financed. That means deploying better risk-mitigation tools, fixing our credit environments and building partnerships that give investors the comfort to commit long-term capital. Stronger financing mechanisms – rooted in transparency, guarantees and innovative structures – are essential for turning African projects into investable opportunities that can deliver real impact,” states NJ Ayuk, Executive Chairman, AEC.
As commitments to energy security, infrastructure expansion and industrialization accelerate across Africa, improving the bankability of projects is becoming increasingly urgent. The G20 Africa Energy Investment Forum’s capital de-risking panel will play a crucial role in shaping the tools, partnerships and financial models needed to unlock the continent’s next wave of transformative development.
Click here to register for the Forum.
