South Africa is set to take on the rotating presidency of the G20 in 2025, presenting a unique opportunity for the country to lead the way in attracting investment to Africa’s energy sector. As the most industrialized nation on the continent and a key energy hub, South Africa’s leadership could play a crucial role in driving funding for natural gas projects, which are essential for Africa’s energy security and economic development.
While renewable energy is on the rise in Africa, the continent still heavily relies on coal, oil, and natural gas to meet its energy needs and drive economic growth. Gas is increasingly being seen as a cleaner transitional fuel in Africa’s energy mix, with many G20 nations investing in gas exploration and production across the continent. Countries like the U.S., U.K., China, and Japan have been instrumental in financing major gas projects in Africa, such as the Mozambique LNG project. South Africa can use its G20 platform to advocate for increased financial support from global partners for new gas projects, which have the potential to boost production, enhance energy security, and attract much-needed investment to the continent.
In addition to promoting investment in gas projects, South Africa can also push for a mix of energy sources, including renewables, to diversify Africa’s energy mix. Drawing on its own successful Renewable Energy Independent Power Producer Program, South Africa can demonstrate to G20 nations the benefits of supporting a variety of energy sources to meet energy demands while transitioning to greener energy.
Creating favorable conditions for financing is also crucial, and South Africa can work with organizations like the World Bank, IFC, BRICS Bank, and European Investment Bank to unlock financing mechanisms that reduce risk for international investors. By advocating for debt relief or concessional financing for African countries with high debt burdens, South Africa can free up resources for governments to invest in energy infrastructure and prioritize projects that improve energy access and support economic growth.
The role of South Africa’s G20 presidency in facilitating greater engagement between G20 nations and African energy markets is significant. By using its platform to promote key energy projects and establish new financing structures, South Africa can attract crucial investment for both traditional oil and gas and clean energy developments. African countries like Nigeria, Angola, Senegal, and Mozambique stand to benefit from increased G20 support for their energy sectors, with South Africa leading the way in aligning energy priorities and fostering partnerships between G20 nations and African energy producers.
The upcoming African Energy Week (AEW): Invest in African Energies conference in Cape Town will serve as a key platform for attracting global attention and investment to Africa’s energy sector. This event will facilitate discussions among G20 nations, financial institutions, and energy companies, driving investment into critical energy projects and positioning South Africa as a catalyst for sustainable development across the continent. With the 2025 edition of AEW coinciding with South Africa’s G20 presidency, the event holds even greater significance in securing crucial investments in Africa’s energy sector and advancing the continent’s energy future.
AEW: Invest in African Energy is the premier platform for project operators, financiers, technology providers, and governments in the African energy sector. To learn more about this event and how to get involved, visit www.AECWeek.com. Distributed by APO Group on behalf of African Energy Chamber.
