News Guide Africa

Tag: NRGI

  • Africa’s energy stakeholders urged to act decisively for the future …As $500bn is needed to close ‘energy poverty’ gap 

    John Jinapor interacting with keynote speakers at the Future of Energy Conference 2025

     

     

    By Adnan Adams Mohammed

     

    Ghana’s Energy Minister, John Abdulai Jinapor, has called on governments, businesses, investors, and civil society to work together to address Africa’s energy challenges.

     

    Speaking at the Future of Energy Conference 2025, Minister Jinapor emphasized the need for collaborative efforts to ensure a sustainable energy future for the continent.

     

    The conference, themed “Financing Africa’s Energy Future: Unlocking Investments for Energy Access and Economic Transformation,” brought together stakeholders to discuss the critical role of energy in driving economic growth, industrialization, and social development in Africa.

     

    It is estimated that around US$500 billion is needed in Africa to close the energy poverty gap. Also, over 600 million Africans lack electricity and nearly a billion rely on traditional biomass for cooking.

     

    “US$500 billion is the cost for sub-Saharan Africa (SSA) to close the energy poverty gap & transition to a sustainable basis”, Suneeta Kaimal, President and Chief Executive Officer of NRGI alarmed in her keynote address at the Future of Energy Conference 2025 (FEC 2025). “By contrast, in 2023, financing for clean & renewable energy in all developing countries, not just SSA, reached only US$22 billion.”

    Suneeta Kaimal, President and CEO of NRGI

    She further noted that, “Governments across Africa spend nearly 17 percent of their revenues on debt service—the highest of any developing region. Over half of Africans now live in countries that spend more on debt than on health or education.”

     

    These are mind boggling statistics that challenge the reality of ‘Just Energy Transition’ and financing needs. Just a year ago, many still believed that bridging this massive financing gap might be achieved through “blended finance”. Blended finance is the idea that we use relatively small amounts of public finance to de-risk and leverage much larger flows of private investment. That was how the EU and the US managed to recover from the 2008 financial crisis.

     

    Apparently, at the fourth Financing for Development Conference in Seville, Kenya helped drive the launch of a bold new coalition, joined by Benin, Sierra Leone, Somalia and others. Together, they committed to taxing premium air travel to raise new, additional, and predictable flows of public finance for sustainable development.

     

    If implemented globally, this measure alone could raise more than US$80 billion in revenue—not loans or aid—every year. To put this in perspective: the International Energy Agency (IEA) estimates that achieving universal access to modern energy in Africa requires only US$25 billion each year.

     

    At first glance, this is just another tax. But it is far more significant. It represents the kind of financial innovation that African leaders can replicate, scale up, and channel to unlock energy access and economic transformations for Africa.

     

    Meanwhile, Hon Jinapor highlighted Ghana’s initiatives to promote sustainable energy, including the Energy Transition Framework, Renewable Energy and Green Transition Fund, and utility-scale solar projects. He also emphasized the importance of a just transition to clean energy, ensuring that it does not undermine energy affordability, industrial growth, or jobs.

     

    “We must mobilize sustainable financing mechanisms, derisk energy investments, and scale up innovation and research in clean technologies,” Minister Jinapor said. “By working together, we can light up Africa, power the engines of transformation, and ensure that the future of energy is the future we all deserve.”

     

    The Minister’s call to action was met with enthusiasm from the audience, who recognized the urgent need for collective action to address Africa’s energy challenges. As the continent continues to grapple with energy poverty and climate change, the Future of Energy Conference 2025 provided a timely platform for stakeholders to share ideas, collaborate, and commit to decisive action .

     

    In his presentation, Yaw Appiah Lartey, Africa Head of Infrastructure & Capital Projects at Deloitte, drummed home the fact that, even in Africa’s high-risk markets, projects can attract investment when they are structured, de-risked, and impact-driven.

     

    “The path to bankability lies in blending innovation with risk mitigation, strong partnerships, and alignment with both investor expectations and local realities”, he pointed.

     

    “However, the question remains, How do we ensure more of Africa’s clean energy ideas make that leap from concept to investment?”, he quizzed.

     

    Subsequently, in his closing remarks, Ben Boakye, Executive Director of African Center for Energy Policy (ACEP) gave key highlights of the Future Of Energy Conference 2025, which included; the fact that, true energy access goes beyond grid connections—it means ensuring that households, businesses, schools, hospitals, and industries cannot only access power, but also afford it and use it productively. Energy access is a matter of dignity, equity, and opportunity.

     

    “Africa’s energy future is inseparable from its broader development agenda. Building sustainable, inclusive, and competitive energy systems is essential for resilience, poverty reduction, and positioning the continent as a strong voice in the global energy transition”, he reiterated.

     

    “Energy transition must be shaped by Africa’s own interests and realities. With a projected population of 2.5 billion by 2050, universal, affordable, and reliable energy access will be critical for unlocking productivity, raising household incomes, advancing gender equity, and driving economic transformation.

     

    “Given that African governments are already financially overstretched, they cannot carry the burden of risk alone. Innovative financial instruments must be designed to de-risk investments while attracting private sector capital. At the same time, governments must strengthen their capacity to negotiate, structure, and manage bankable projects—engaging professional transaction advisors early to avoid poorly structured contracts.

     

    “Finally, regional cooperation through integrated energy markets and cross-border infrastructure will be vital for achieving cost efficiency, ensuring energy security, and accelerating Africa’s transition to a just and inclusive energy future.”

     

     

  • Energy Is Development: Women Miners Lead Africa’s Just Transition

     

    At the Future of Energy Conference (FEC) spearheaded by the Africa Center for Energy Policy (ACEP) and partners, women miners, industry leaders, and governance experts gathered for a powerful side event moderated by Faith Mutete a small scale miner, Founder & CEO of Women in Mining Zimbabwe (WIM Zimbabwe) and Resource Governance Ambassadors under ACEP.

    The session explored how energy, mining, and women’s leadership intersect to drive Africa’s just transition.

    From Kenya, Michelle Mwambela of AWEIK (Association of Women in Extractives in Kenya) showcased an inspiring innovation: a solar-powered water pumping system developed through a hackathon. She explained how clean, off-grid energy improves safety, increases productivity, and creates opportunities for value addition and green skilling for women miners.

    Georgette Banzi, CEO of Women in Mining Ghana (WIM Ghana), shared success stories of gender-smart financing models that enabled women miners to grow from small-scale operations into sustainable businesses. She stressed that financing women in mining is a pathway to strengthening entire communities.

    From Tanzania, Lightness Mushi of TWIMMI (Tanzania Women in Mining and Mineral Industry) lifted grassroots voices. She described how women miners often face barriers such as limited financial literacy, poor access to equipment, and cultural biases. Yet, she highlighted creative resilience, like women repurposing traditional stoves into stools, showing how local innovation can transform livelihoods.

    Mahumuza Diders of Uganda focused on governance, emphasizing the need for policies and partnerships that hold both government and industry accountable to ensure equitable access to energy for women miners.

    Joelle from Madagascar, representing Transparency International, underscored the importance of accountability and anti-corruption measures in extractives. She warned of exploitative foreign investment models and argued that women’s inclusion is essential to safeguard community benefits.

    As the discussion wrapped up, Faith Mutete shared her closing message:

    👉 “Energy is not just power. Energy is a proxy indicator of development. When women miners access energy, communities thrive, productivity increases, and Africa takes a bold step toward a just energy transition.”

    Speaking in her capacity as ACEP Resource Governance Ambassador, she added: “I have a lot to do back home in Zimbabwe to continue supporting women miners in renewable energy, governance, and innovation. This is only the beginning—and many thanks to the Africa Center for Energy Policy (ACEP) for making this a reality.”

    Faith also serves as a Technical Advisor at the Investing in African Mining Indaba under the Just Energy Transition Committee, where she continues to amplify the voices of women miners in shaping Africa’s extractive and energy future.

    The session concluded with a united call to action: scale innovation, finance women miners, and embed accountability—placing women at the center of Africa’s mining and energy transition.

  • Africa Faces $500bn Bill to Close Energy Poverty Gap and Transition to Sustainable Energy – NRGI President warns

     

     

    Suneeta Kaimal, President and CEO of NRGI

     

     

     

    By Adnan Adams

     

    Sub-Saharan Africa is staring at a staggering $500 billion bill to bridge the energy poverty gap and transition to a sustainable energy system, according to Suneeta Kaimal, President and CEO of the Natural Resource Governance Institute (NRGI).

     

    Speaking at the Future of Energy Conference 2025 in Accra, Kaimal highlighted the enormous financing gap, noting that in 2023, financing for clean and renewable energy in all developing countries reached only $22 billion.

     

    The stark reality is that over 600 million Africans lack access to electricity, and nearly a billion rely on traditional biomass for cooking, perpetuating cycles of poverty and environmental degradation.

     

    Kaimal emphasized that innovative financing solutions are necessary to address this challenge, citing the potential for taxing premium air travel to raise new revenue streams for sustainable development

     

    Among some of the key challenges she noted included mounting debt burden, financing gap and unsustainable lending.

     

    According to available statistics, African governments spend nearly 17% of their revenues on debt service, the highest of any developing region, with over half of Africans living in countries that spend more on debt than on health or education.

     

    It is required that $500 billion is needed for sub-Saharan Africa’s energy transition, a significant challenge, with current financing models falling short. To avert this, new lending models are needed to mobilize private capital at fair interest rates, avoiding overburdening public budgets.

     

    The NRGI Chief proffered that, to remedy the current situation; strategic, inclusive transitions are needed. Emphasising that, context-specific solutions aligned with development ambitions and public priorities are essential for successful energy transitions.

     

    Also, leveraging Africa’s immense resources, including 30% of the world’s transition mineral reserves, can help increase public resources and drive sustainable development and exploring new financing mechanisms, such as the tax on premium air travel, can provide predictable revenue streams for sustainable development.

     

     

  • GNPC cautioned on ‘Operatorship’ goal as ET agenda poses threat – NRGI

    GNPC cautioned on ‘Operatorship’ goal as ET agenda poses threat – NRGI

    Adnan Adams Mohammed

    The National Oil Company (NOC) of Ghana has been cautioned to thread consciously in the spirit of achieving its ambition of becoming Oil and Gas production operator in a few years time.

    The caution comes at the time, the global economic frontiers are committing to the Energy Transition (ET) agenda strongly as majority of the economies set to meet net zero carbonisation by 2040.

    Ghana National Petroleum Corporation (GNPC) plans to be Operator by 2025, and therefore seeking to invest significantly in exploration, development and production of oilfields. The recent attempt was the intention to buy stakes in Aker operated DWTCP oilfield yet to be developed at estimated budget of about US$1.5 billion. Though, as controversial as the deal was, the acquisition process has stalled. But, an Energy Transition expert with the Natural Resource Governance Institute (NRGI) is pessimistic with GNPC recouping its investment as the ET agenda takes to a ‘fast transition’ by 2040 at when a barrel of crude may sell at US$20 averagely.     

    “About three continents of the world economies plans to be net zero by 2040, so if they achieve that goal, GNPC has about 15 years of time before oil runs up. Is that the future to aspire? Is it good for Ghana? I don’t know”, David Manley quizzed rhetorically in an interview at the sideline of a two-day training program for selected media and CSOs representatives at Aburi in the Eastern Region of Ghana last week.

    The West African Regional Manager, Nafi Chenery, in her remarks called on governments’ to listen to people and as well as speak to different stakeholders, particularly those who already have some information and knowledge about energy transition, so they  can help share their knowledge and skills on the issues to improve on government’s efforts at making things better

    She posited that, the plans by government must speak to our realities and our context as Ghana and the world which has the potential to propel the country to the next level.

    “So we need to put in a lot of effort and prepare and ensure that whatever plans we are putting in place is representative of the views and voices of all sectors. Right that the plan speaks to our realities and our context as Ghana and the world, one has a potential to propel us to the next level.”

    “And so governments should listen to people and speak to different stakeholders, particularly those who already have some information and knowledge about energy transition, you know and share their knowledge and skills to improve on government transport,” Nafi Chinery said.

    She said energy transition plans need to be just,  inclusive and need to be participatory by all.

    Participants were excited about training and hopes it helps them improve on their works and writeups as CSOs and media respectively

    The energy transition is a pathway toward a transformation of the global energy sector from fossil-based to zero-carbon by the second half of this century. At its heart is the need to reduce energy-related CO2 emissions to limit climate change.

  • Energy Transition: NRGI Regional Manager Writes on How Ghana Can Map Its Journey

    Energy Transition: NRGI Regional Manager Writes on How Ghana Can Map Its Journey

    Author: Nafi Chinery

    All countries have a vital role and interest in avoiding catastrophic climate impacts and safeguarding a livable planet. Like the citizens of most developing countries, Ghanaians are increasingly affected by climate change, despite bearing little responsibility for the emissions that have caused it.

    At the COP26 climate conference last year, governments reaffirmed their commitment to the goal of limiting global warming to 1.5°C. Achieving this will require a colossal and unprecedented shift away from fossil fuels to renewable energy sources like wind and solar—as well as provision of clean, affordable and reliable energy for the nearly one billion people currently living without it.

    The wealthiest countries that have polluted the most should hold the primary responsibility for tackling climate change, both in cutting their emissions first and fastest, and in providing climate finance and support to countries like Ghana. Ghana’s President Nana Akufo-Addo emphasized this responsibility during COP26 when he called for a fair and equitable solution that “recognizes the historical imbalances between the high emitters and low emitters.”

    To date, however, wealthy countries have under-promised and underdelivered. They have yet to reduce emissions to the extent necessary to avoid warming beyond 2°C, let alone 1.5°C. And, as President Akufo-Addo also mentioned, they have failed to honor their 2010 promise of USD100 billion per year to support developing countries’ responses to climate change. Tragically, the consequences will be felt by all for decades to come.

    Ghana’s agency in the energy transition

    Despite this compound injustice and these broken promises, Ghana’s future ultimately depends on its own leadership and effective planning. Ghana is still a resource-dependent country, with more than a quarter of its export earnings coming from oil and gas alone. Over the past decade, the oil sector has contributed around $6.5 billion of direct revenue to Ghana’s budget. Without a plan to respond to the global energy transition, a significant decline in oil revenues could plunge Ghana into a deep crisis.

    At a minimum, the government should avoid making bad decisions—those that threaten the country’s economic and fiscal outlook. But Ghana’s record does not inspire confidence. In the last decade, the government has allocated $2 billion to the Ghana National Petroleum Corporation (GNPC). These investments have financed equity stakes in exploration, development and general operations in oil-producing fields. NRGI’s Risky Bet report shows that, globally, oil and gas projects currently in the pipeline worth an estimated $400 billion run the risk of not breaking even. Against the backdrop of the global energy transition, GNPC’s ambitions of becoming an operator are risky.

    In July 2021, Ghana’s Ministry of Energy and GNPC declared their intention to sink an additional $1.65 billion of public money into shares of Aker Energy’s oil project—yet another “risky bet” given the increasing pace of the global energy transition, which would result in poor returns on such a large-scale investment. Furthermore, such a decision would divert precious capital that the government could invest in more socially beneficial programs such as education or cheaper and more diverse energy sources that could power development in Ghana. Thankfully, after severe criticism from civil society organizations, the public and industry oversight bodies in Ghana, the government paused its investment plans in the Aker shares.

    No doubt, Ghana’s economic and fiscal outlook is uncertain. The 2018/19 oil licensing round remains unconcluded and oil production is projected to decline. International companies are redirecting their investments, and projects have been delayed. State oil revenues peaked in 2018, at 10 percent of total government revenue, and dropped to seven percent in 2020 due to the coronavirus pandemic. The ongoing war between Russia and Ukraine and the related global energy crisis now present huge uncertainties for the oil sector, including the prospect of a global recession.

    The good news is that Ghana now has a golden opportunity to develop a comprehensive and context-specific plan for navigating the global energy transition. In response to COP26 and Ghanaian CSOs’ demands for a national energy transition policy, the government launched the National Energy Transition Committee (NETC) in December 2021. The committee is tasked with developing a national policy document on steps the country can take to successfully navigate global energy transition. The NETC is also tasked with conducting a nationwide consultation on Ghana’s energy transition. At the first regional forum organized by the Ministry of Energy on behalf of the NETC, Vice President Dr. Mahamudu Bawumia said the NETC’s nationwide consultations are key to success: “We need to develop plans and implement options that people can relate to.” He also stressed the importance of equal opportunities for all citizens to enjoy the benefits of the energy transition and ensure social justice in the process.

    Essential elements for Ghana’s approach

    The establishment of the NETC is an important and valuable first step. The following recommendations, if adopted, would put the committee on track to deliver a successful energy transition plan:

    Include all voices. Ghana’s plan should be inclusive and leave no citizen behind. The plan should address how government will support local economies with relevant training, technology and finances to take advantage of the new opportunities in the transition.

    Enlist experts. The NETC should engage sector experts working on the energy transition to help ensure that the plan is informed by data and technical analysis.

    Promote open dialogue. Open and honest engagement between all relevant stakeholders will help build consensus and ownership around a transition pathway that is widely considered by citizens as viable and necessary. A shared understanding of the risks and opportunities of the energy transition is critical to agree on a shared strategy.

    Plan in harmony and coordination with existing policies. The energy transition plan should harmonize existing policy objectives and remedy the systemic inefficiencies in existing policy implementation.

    Improve governance of climate finance. The Ministry of Finance should spell out the role of international climate finance in energy transition planning and interrelate the energy transition plan with Ghana’s (conditional) nationally determined contributions under the Paris Agreement. Across the board, this requires building the state’s capacity to receive and deploy international climate finance.

    Take a critical and dynamic approach to energy options. The transition plans must address Ghana’s growing energy needs. Decisions about energy sources and related services should be based on analyzing different solutions over the long term, mindful of the likelihood that many factors (such as the competitiveness of renewables and gas) may change quickly over the coming decade. Accordingly, the NETC should review the role of fossil gas over the course of the transition—not assume from the outset that gas will be a constant.

    Assess implications for existing institutions. Ghana’s energy transition plan should consider the role of existing institutions such as GNPC in light of the long-term, macro pathway, rather than starting with assumptions about their purpose and role. Making the right investment decisions will require transparency and robust risk assessment.

    Nafi Chinery is the West Africa (Anglophone) regional manager at the Natural Resource Governance Institute (NRGI).

  • Ghana losses US$923mn investment expenditure to inactive oil blocks awarded – ACEP

    Ghana losses US$923mn investment expenditure to inactive oil blocks awarded – ACEP

    Adnan Adams Mohammed

    The African Center for Energy Policy (ACEP) has reported that, inactive oil blocks which numbers more than 10 have denied Ghana of about US$923 million as at 2019.

    Ghana since 2007 has awarded 18 oil blocks to various oil exploration and production companies. Out this, only three blocks have been developed and producing, that include the Jubilee field, TEN fields and the SGN field.

    Although, according a report from the Petroleum Commission has indicated that, four inactive oil blocks have been canceled so far, which includes the Shallow Water Cape Three Point, Onshore/Offshore Keta Delta blocks among others.

    “Inactivity by oil block holders is causing the country to losses huge revenues as well as denying the country of potential investors”, Samuel Bokoe, an energy consultant has said during a training session organised for media persons and CSOs in Accra, last week. “The Petroleum Commission and relevant stakeholders must up their game to cancel all inactive oil block contracts so they can be available for the next bid rounds.”

    The training organised by the Natural Resorce Governance Institute (NRGI) to help enhance the capacity of CSOs and media to use publicly available contracts in the Petroleum Register to demand accountability brought together officials from the Petroleum Commission, selected media persons anti-corruption and energy focused CSOs for a day training.  

    The training sought to create awareness about the petroleum register and, provide skills required for CSOs and journalists to understand how to navigate the petroleum register.

    Some participants who spoke to the Economy Times after the training testified that, they have acquired skills needed to analyze and understand petroleum contracts including other publicly disclosed contracts to complement the efforts of oversight actors and regulators in monitoring these contracts.