By Bahle Gama
MBABANE – Minister of Natural Resources and Energy Prince Lonkhokhela has emphasised the country’s commitment to transforming from a net importer to a net exporter of power.
The Minister said this in his address during the 2024 Africa Energy Forum in Barcelona, Spain held from June 25 to 28. African energy decision-makers were brought together by the Africa Energy Forum (AEF) to create partnerships, identify opportunities, and advance the sector towards a sustainable future.
This annual event was a platform for in-depth discussions on how to balance Africa’s development needs with global goals in the future energy system.
Other delegates from Eswatini were also in attendance at the Africa Energy Forum, actively participating in various discussions and meetings with their African counterparts.
Speaking during a closed session, the Minister shared the government of Eswatini’s policy directive encouraging Independent Power Producers’ (IPP) participation in the development of the electricity sector.
Prince Lonkhokhela underscored the need for the Eswatini Energy Regulatory Authority (ESERA) and Eswatini Electricity Company to promote and facilitate IPP participation in the development of the electricity supply industry, in line with the government policy directives.
However, the Minister stressed that IPPs must be aware that price remains a critical differentiator when competing for grid connections.
“The Minister further debunked the commonly held misconception among some lending institutions that energy project development across Africa always necessitates sovereign guarantees. Instead, lenders should evaluate each country on its merits, with Eswatini being a prime example of a country with an outstanding debt servicing record, favourable investment vehicles, and a stable currency.”
Prince Lonkhokhela’s views were supported by Zimbabwe Minister Moyo who shared similar ambitions for his country’s energy sector, particularly with regard to C&I systems playing a key role in the mining industry.
The increasing growth and liberalization of C&I systems represent a marked shift in the industry, necessitating a re-evaluation of how utilities and regulators must operate to adapt to these changes.
Prince Lonkhokhela’s participation and the other respective ministers reaffirm their countries’ commitment to fostering a robust energy sector that aligns with global sustainable energy goals.
Meanwhile, News Ghana reported that Ghana’s Minister of Energy Dr Mathew Opoku Prempeh urged global energy leaders to invest in Ghana’s burgeoning energy sector during his address.
Emphasizing Ghana’s pivotal role in driving economic growth and sustainability across the subregion, Dr. Prempeh highlighted opportunities in renewable energy, energy access, and grid modernization.
During the Ministerial roundtable on energy systems for the future, he engaged with key stakeholders to strategize positioning Ghana’s energy sector under the Powering Africa programme.
“We need your investment to unlock these opportunities, accelerate our economic growth, and enhance energy security for our citizens,” Dr. Prempeh urged attendees at the forum.
Dr. Prempeh also met with World Bank officials to discuss coordinated efforts toward achieving a stable and efficient energy sector. In discussions on gas value chains and infrastructure development, he underscored natural gas’s pivotal role in Africa’s industrialization amidst global energy transitions.
Ghana aims to leverage its renewable energy resources to become a leader in sustainable energy development in Africa, setting a precedent for other nations.
Another was Globeleq Africa interim CEO Jonathan Hoffman who reminded attendees that a key difference between Africa in 2010 and now is that an ecosystem of energy developers has been working with both partners and competitors to lobby governments on what would create an enabling environment to develop energy projects.
“We’ve made substantial strides forward in the energy sector and realised major setbacks. Today is perhaps the most challenging time in Africa to do deals in the last 30 years. It’s a big statement, but I’m not the only one making it. I’ve heard from many that interest rates are high, the post-pandemic hangover remains, and construction delivery for projects is a major challenge. A lot of the big players are exiting the market,” he said.
Hoffman stated that even though there is a major attraction to the conference, the reality is that it is a difficult time to get deals done, adding that many of their major European colleagues who have participated in Africa, are looking to exit.
He said from a contrarian perspective, it is a great time to look to be a potential buyer in this market. It is a time for the brave to hold their nerve, to remain in the market, and to deliver.
He emphasized that collaboration is key to delivering the energy markets of the future that will meet customer needs, adding that for him, the future customers would not only include the current utility off-takers but also intensive energy users “across the continent and onwards, to all energy customers.
“That is the vision for the future, to deliver power to all the people,” said Hoffman.
