Energy Archives - African Leadership Magazine https://www.africanleadershipmagazine.co.uk/category/governance-and-policy/energy/ Most Reliable Source for Afro-centric News Tue, 18 Mar 2025 10:38:03 +0000 en hourly 1 https://wordpress.org/?v=6.2.6 https://www.africanleadershipmagazine.co.uk/wp-content/uploads/2019/01/cropped-289x96-32x32.jpg Energy Archives - African Leadership Magazine https://www.africanleadershipmagazine.co.uk/category/governance-and-policy/energy/ 32 32 Hydropower vs. Solar: What’s Africa’s Best Bet for a Green Future? https://www.africanleadershipmagazine.co.uk/hydropower-vs-solar-whats-africas-best-bet-for-a-green-future/ Tue, 18 Mar 2025 10:38:03 +0000 https://www.africanleadershipmagazine.co.uk/?p=65783 As Africa strides towards a sustainable energy future, the continent faces a crucial decision: Should it invest more in hydropower or solar energy? Both sources hold immense potential yet differ.

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As Africa strides towards a sustainable energy future, the continent faces a crucial decision: Should it invest more in hydropower or solar energy? Both sources hold immense potential yet differ in cost, efficiency, environmental impact, and scalability. With Africa’s energy demand expected to increase by over 60% by 2040, according to the International Energy Agency, determining the best path forward is imperative.

 

Globally, solar energy is leading the investment race. In 2024 alone, solar photovoltaics (PV) attracted over $500 billion in investments, surpassing all other electricity generation sources combined. Hydropower, despite its historical dominance, is witnessing a decline in new investments, with only $130 billion annually allocated for expansion.

 

READ ALSO: Africa’s Journey towards a Solar-Powered Future

 

Solar energy’s installed capacity reached 1.5 terawatts (TW) in 2023, overtaking wind energy and closing in on hydropower’s 1.4 TW capacity. However, hydropower remains the largest source of renewable electricity, generating over 4,200 terawatt-hours (TWh) annually, while solar contributes approximately 1,300 TWh, according to the 2024 International Renewable Energy Agency (IRENA) report.

 

Efficiency-wise, hydropower surpasses solar with a capacity factor of 40-60%, compared to 15-25% for solar. This means hydropower plants generate electricity more consistently than solar farms, which rely on sunlight availability.

 

The African Context: Hydropower’s Legacy vs. Solar’s Disruption

Africa has long relied on hydropower, which accounts for nearly 70% of the continent’s renewable electricity (African Development Bank, 2023). The Grand Ethiopian Renaissance Dam (GERD), expected to generate 6.45 gigawatts (GW), exemplifies Africa’s hydropower ambitions. Similarly, Inga III in the Democratic Republic of the Congo has the potential to add another 11 GW to Africa’s grid.

 

Yet, hydropower faces significant challenges. Africa’s hydropower potential is heavily reliant on river systems like the Nile, Congo, and Zambezi, which are vulnerable to climate change-induced droughts. Countries such as Zambia and Zimbabwe experienced severe blackouts in 2019 and 2022 due to low water levels at the Kariba Dam.

 

Conversely, solar energy is rapidly gaining traction. Egypt, South Africa, and Morocco are spearheading large-scale solar projects, with Egypt’s Benban Solar Park (1.65 GW) ranking among the largest in the world. Africa’s solar potential is immense, with daily irradiation levels exceeding 5.5 kWh/m², making it one of the sunniest continents. In 2024, solar PV capacity in Africa surpassed 14 GW, a threefold increase since 2018.

 

Cost and Feasibility: Which Is More Practical for Africa?

Cost is a decisive factor. The levelised cost of electricity (LCOE) for solar PV dropped to $0.04/kWh in 2024, compared to $0.07/kWh for large-scale hydropower. This decline is driven by technological advancements and economies of scale, making solar more financially attractive.

 

Solar also offers flexibility. Unlike hydropower, which requires multi-billion-dollar infrastructure and long gestation periods, solar farms can be deployed quickly. For instance, Kenya’s Garissa Solar Plant (50 MW) was completed in less than two years, whereas large dams often take a decade or more.

 

However, hydropower provides energy storage and grid stability, which solar lacks. Hydropower’s ability to store excess energy in reservoirs makes it crucial for balancing Africa’s intermittent renewables, especially in regions with underdeveloped battery storage technology.

 

Environmental Considerations: Sustainability and Climate Impact

Environmental sustainability is a key concern. Hydropower projects often lead to deforestation, displacement of communities, and ecosystem disruption. The Merowe Dam in Sudan displaced over 50,000 people, and Ghana’s Akosombo Dam altered the Volta River ecosystem.

 

Solar, in contrast, has a lower ecological footprint. However, the production of solar panels relies on rare earth minerals like lithium and cobalt, raising concerns about unsustainable mining practices in countries such as the Democratic Republic of the Congo.

 

Africa’s Best Bet: A Balanced Approach

The verdict? Neither hydropower nor solar alone can power Africa’s green future. A hybrid approach is essential.
Solar should be the dominant energy source due to its declining costs, scalability, and abundance. Investments in decentralised solar mini-grids can rapidly expand access to electricity in rural areas.

 

Hydropower must play a complementary role, particularly for grid stability and energy storage. Future investments should focus on small and run-of-river hydropower projects, which minimise environmental and social impacts.

 

Energy storage and grid modernisation are critical. Expanding battery storage solutions and investing in grid infrastructure will maximise the benefits of solar energy and mitigate its intermittency.

 

Shaping Africa’s Renewable Energy Future

Africa stands at an energy crossroads. While hydropower has historically been the backbone of the continent’s renewable energy, solar is emerging as the more cost-effective and scalable solution. A strategic blend of solar dominance and hydropower stability, supported by investments in battery storage and transmission infrastructure, will be the most viable path towards a sustainable and resilient green future.

 

As the sun rises on Africa’s energy revolution, it is clear that solar energy, with the right policies and investments, will lead the continent’s transition towards a cleaner, more prosperous future.

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Africa Energy Indaba 2025: Countdown to Shaping Africa’s Energy Future https://www.africanleadershipmagazine.co.uk/africa-energy-indaba-2025-countdown-to-shaping-africas-energy-future/ Wed, 05 Feb 2025 15:50:29 +0000 https://www.africanleadershipmagazine.co.uk/?p=65276 Cape Town, South Africa, The 17th edition of the Africa Energy Indaba (AEI) is set to take place from March 4-6, 2025, at the Cape Town International Convention Centre. Under.

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Cape Town, South Africa, The 17th edition of the Africa Energy Indaba (AEI) is set to take place from March 4-6, 2025, at the Cape Town International Convention Centre. Under the theme “African Energy—Pathways to Prosperity: Resolutely Delivering a Robust Future,” this premier event continues to be the continent’s definitive platform for shaping Africa’s energy policies and driving impactful business opportunities.

The Africa Energy Indaba is recognised as the leading energy conference and exhibition in Africa, offering a strategic platform for dialogue between key stakeholders, including government ministers, private sector executives, and industry leaders. The event plays a crucial role in addressing the continent’s most pressing energy challenges while fostering innovative solutions that support sustainable energy development.

Backed by influential organisations such as the South African Department of Mineral Resources and Energy (DMRE) and the African Union Development Agency, AEI remains a cornerstone event in Africa’s energy landscape. The conference provides an unparalleled opportunity for stakeholders to engage in high-level discussions, forge strategic partnerships, and explore investment opportunities that will shape the future of Africa’s energy sector.

Key Highlights of Africa Energy Indaba 2025:

  • Policy Influence & Deal-Making: A premier forum for discussions that drive policy reforms and facilitate major energy investments.
  • Government & Private Sector Engagement: Bringing together ministers, policymakers, and business leaders to shape Africa’s energy agenda.
  • Innovative Solutions: Showcasing cutting-edge technologies and sustainable energy strategies to drive sectoral transformation.
  • Strategic Partnerships: Strengthening collaboration between African governments, international investors, and leading industry players.

Join the Conversation:

As Africa continues its journey towards a sustainable and prosperous energy future, AEI 2025 provides the ideal platform to connect, collaborate, and create impactful change. Don’t miss this opportunity to be part of the conversation that will define the next phase of Africa’s energy evolution.

Media Contact:

For more information and to register, visit: www.africaenergyindaba.com or Qondakuhle Dwangu, q@energyindaba.co.za

About Africa Energy Indaba:

The Africa Energy Indaba is the leading energy event in Africa, renowned for its role in shaping policy, fostering investment, and driving energy solutions across the continent. Held annually, the event provides a platform for critical discussions, networking, and deal-making that contribute to Africa’s energy transformation.

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Ecological Modernisation in Africa’s Oil Industry: A Niger Delta Case Study https://www.africanleadershipmagazine.co.uk/ecological-modernisation-in-africas-oil-industry-a-niger-delta-case-study/ Mon, 03 Feb 2025 08:53:43 +0000 https://www.africanleadershipmagazine.co.uk/?p=65324 The Niger Delta, one of Africa’s most resource-rich regions, accounts for approximately 75% of Nigeria’s foreign exchange earnings and nearly 40% of the country’s GDP. Yet, it remains a paradox.

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The Niger Delta, one of Africa’s most resource-rich regions, accounts for approximately 75% of Nigeria’s foreign exchange earnings and nearly 40% of the country’s GDP. Yet, it remains a paradox of wealth and environmental devastation. Chronic oil spills—averaging 240,000 barrels annually—gas flaring, deforestation, and loss of aquatic biodiversity have crippled local livelihoods. The region mirrors the environmental challenges faced by other resource-rich African nations such as Angola, Equatorial Guinea, and Gabon. However, the concept of ecological modernisation offers a transformative pathway for Africa’s oil-producing economies to balance industrial growth with sustainability.

Ecological modernisation integrates environmental sustainability into industrial strategies, emphasising technological advancements, regulatory frameworks, and community engagement. In the African oil industry, this paradigm is essential for mitigating the environmental and social costs of resource extraction. The Niger Delta’s experience underscores the urgency of adopting cleaner technologies, enforcing environmental standards, and fostering inclusive stakeholder participation via the following:

  1. Technological Innovation

Africa’s oil sector must embrace cleaner extraction and processing technologies to curb environmental degradation. In Nigeria, the failure to implement advanced leak detection systems has led to over 12,000 recorded spills since 1976, according to the National Oil Spill Detection and Response Agency (NOSDRA). The adoption of enhanced oil recovery (EOR) techniques and digitised pipeline monitoring could drastically reduce spills and wastage. Moreover, gas flaring—responsible for emitting 330 billion cubic feet of methane in Nigeria alone—can be phased out through gas-to-power investments, a model successfully adopted in Algeria and Egypt.

  1. Strengthening Regulatory Frameworks

Nigeria’s regulatory framework, though improving, remains weak due to inconsistent enforcement. The 2021 Petroleum Industry Act (PIA) was a step forward in ensuring environmental accountability, but gaps persist. Countries like Ghana, which has leveraged the Petroleum Revenue Management Act (2011) to enforce environmental safeguards, provide a blueprint for Nigeria and others. Stronger enforcement of pollution penalties and mandatory environmental impact assessments (EIAs) can drive oil firms toward greener operations.

  1. Corporate Responsibility and Community Engagement

Africa’s oil multinationals, including Shell, Chevron, and TotalEnergies, have faced longstanding criticisms for environmental negligence. Corporate Social Responsibility (CSR) initiatives must go beyond token gestures and genuinely invest in local development. The Niger Delta Amnesty Programme, which sought to address oil-related conflicts, highlights the need for deeper community involvement. Similar to Angola’s Cabinda model, which reinvests oil revenues into social projects, Nigeria’s oil companies must adopt community-led sustainability programs to foster long-term trust and stability.

  1. Economic Diversification

A sustainable future for the Niger Delta—and Africa’s broader oil belt—requires economic diversification. Agriculture, aquaculture, and renewable energy can serve as alternative economic engines. Nigeria’s renewable energy sector, currently contributing less than 10% to national power generation, holds immense potential. The success of Kenya’s geothermal energy projects and South Africa’s solar initiatives offer models for the Niger Delta to explore solar farms and hydropower as viable alternatives.

Overcoming Key Challenges

Despite the promise of ecological modernisation, challenges remain. Weak governance, corruption, and the entrenched interests of oil conglomerates hinder progress. Additionally, financial constraints and a lack of skilled labour impede the transition to cleaner technologies. However, international partnerships—such as the United Nations Environment Programme’s (UNEP) involvement in the Ogoniland clean-up—demonstrate that multi-stakeholder collaboration can yield tangible environmental restoration efforts.

To harness the potential of ecological modernisation, African oil-producing nations must prioritise the following:

  • Public-Private Partnerships (PPPs): Collaborative investments in clean energy and environmental restoration projects.
  • Legislative Reforms: Enforcing stricter environmental regulations with clear punitive measures.
  • Technological Investments: Deploying digital monitoring systems to curb oil spills and gas emissions.
  • Community-Led Initiatives: Ensuring that local populations are integral to decision-making and benefit from resource wealth.

The Niger Delta’s struggle with ecological degradation is not unique—it mirrors the broader challenges of Africa’s resource-rich regions. However, ecological modernisation presents an opportunity to rewrite this narrative. By embracing technological innovation, enforcing robust environmental policies, and ensuring equitable community participation, Africa’s oil industry can transition from an extractive model to a sustainable, inclusive, and globally competitive sector. If pursued with genuine commitment, the Niger Delta could transform from an environmental cautionary tale into a benchmark for sustainable resource management across the continent.

 

Dr. Joshua Rufus Abadi is a renowned environmental engineer specializing in water contamination. He has provided consultancy on oil spills in Nigeria and has spearheaded the EU WasClean project. Additionally, he collaborates with the University of Southampton and the University of Brighton, and leads environmental initiatives for Inspired Grace Healthcare.

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Polluted Waters: A Global Challenge That Demands Action https://www.africanleadershipmagazine.co.uk/polluted-waters-a-global-challenge-that-demands-action/ Fri, 10 Jan 2025 12:16:08 +0000 https://www.africanleadershipmagazine.co.uk/?p=65008 Water is the essence of life—essential for sustaining humanity, driving economies, and nourishing ecosystems. Yet, beneath its surface, a silent crisis is unfolding; a global challenge that demands action. Water.

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Water is the essence of life—essential for sustaining humanity, driving economies, and nourishing ecosystems. Yet, beneath its surface, a silent crisis is unfolding; a global challenge that demands action. Water pollution, a pervasive and often overlooked threat, is eroding the health of our planet and its people. From industrialised cities in the United States and the United Kingdom to rural communities in Africa, water contamination is escalating, with dire consequences that demand immediate action.

In the United States, water pollution is closer to home than many realise. Over 97 million Americans consume drinking water containing harmful, unregulated chemicals, many of which are inadequately addressed by current policies. The Anacostia River in Washington, D.C., has endured over 150 years of industrial pollution, symbolising a nationwide problem affecting waterways from the Great Lakes to the Pacific Ocean. Contaminants from industrial waste, agricultural runoff, and chemical spills continue to infiltrate water systems due to insufficient regulation and enforcement, placing countless communities at risk.

The United Kingdom faces similar challenges. Despite its reputation for strong environmental policies, water pollution remains a significant issue. Agricultural runoff, untreated sewage, and chemical pollutants plague the country’s rivers, once the backbone of its industrial growth. In 2020, nearly 40% of UK rivers were classified as being in poor ecological health, according to the Environment Agency. Outdated infrastructure and underinvestment in wastewater treatment exacerbate the problem, leading to the discharge of millions of litres of untreated sewage annually. This pollution threatens public health and biodiversity, pushing species such as fish and aquatic insects toward extinction.

Across Africa, the water crisis is even more severe. Over 500 million people live in water-insecure regions, where access to clean water is a luxury rather than a basic right. Rivers and streams, vital for families and farmers, are increasingly contaminated with untreated sewage and industrial waste. This pollution not only jeopardises human health but also disrupts agricultural productivity and biodiversity. In rural areas, waterborne diseases like cholera and typhoid remain rampant, while urban centers struggle with poor waste management. In Nigeria, oil spills have devastated ecosystems, rendering water sources undrinkable and creating ecological dead zones.

The causes of water pollution are diverse and interconnected. Industrial facilities discharge untreated waste into rivers and lakes, while agriculture contributes to nutrient-laden runoff from fertilisers, pesticides, and animal waste. This runoff fuels algal blooms, depleting oxygen in the water and creating “dead zones” inhospitable to aquatic life. Compounding the problem is the growing threat of plastic pollution. Each year, millions of tonnes of plastic enter waterways, breaking down into microplastics that infiltrate ecosystems and even human bodies. These particles have been found in oceans, rivers, and drinking water, raising concerns about their long-term health and environmental impacts.

Despite these challenges, solutions are within reach. Technological innovations are providing new ways to combat water pollution. For instance, floating treatment wetlands in Nepal are effectively removing heavy metals and nitrates from lakes using low-cost, locally sourced materials. Such initiatives could be adapted for resource-constrained regions like Africa, where affordability and simplicity are key.

In the United States, progress is being made to address persistent pollutants like PFAS—dubbed “forever chemicals” for their resistance to degradation. Advanced filtration technologies and stricter regulations, such as the Environmental Protection Agency’s new PFAS limits in drinking water, represent steps forward. However, success depends on robust enforcement and equitable funding to ensure these solutions reach vulnerable communities.

In the UK, public awareness and political will are crucial to reversing the damage to waterways. Momentum is growing for initiatives to reduce single-use plastics and upgrade sewage treatment infrastructure. With sustained investment and time, improved wastewater systems and sustainable agricultural practices could mitigate the pollution crisis.

Global collaboration is essential. International agreements, such as a treaty on plastic pollution, could lead to meaningful reductions in plastic production and the elimination of harmful additives. Since water pollution transcends borders, collective efforts are crucial to addressing its impacts downstream.

Leadership at all levels is pivotal. Political leaders in Africa, for example, have the opportunity to prioritise water security by investing in wastewater treatment plants, supporting community clean-up efforts, and fostering public-private partnerships. Similarly, public education campaigns can empower communities to adopt sustainable practices and safeguard water resources.

The global water pollution crisis is a shared challenge, transcending borders and cultures. While the severity of its impacts varies, the message is clear: water, the lifeblood of our planet, is under threat. Addressing this crisis requires a multifaceted approach that blends innovation, regulation, and community engagement. With collective effort and unwavering commitment, we can turn the tide against water pollution, ensuring a healthier and more sustainable future for generations to come.

Dr. Joshua Rufus Abadi is a renowned environmental engineer specializing in water contamination. He has provided consultancy on oil spills in Nigeria and has spearheaded the EU WasClean project. Additionally, he collaborates with the University of Southampton and the University of Brighton, and leads environmental initiatives for Inspired Grace Healthcare.

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Daisy Danjuma: Redefining Power, Influence, and Purpose https://www.africanleadershipmagazine.co.uk/daisy-danjuma-redefining-power-influence-and-purpose/ Fri, 10 Jan 2025 11:35:05 +0000 https://www.africanleadershipmagazine.co.uk/?p=65002 What happens when power meets purpose and influence becomes a tool for transformation? Daisy Danjuma’s extraordinary journey offers a tantalising glimpse into the possibilities. Few figures in Africa’s history command.

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What happens when power meets purpose and influence becomes a tool for transformation? Daisy Danjuma’s extraordinary journey offers a tantalising glimpse into the possibilities.

Few figures in Africa’s history command attention like Daisy. Danjuma—a woman whose life story reads like a gripping narrative of ambition, resilience, and extraordinary triumphs. From the courtroom to the Senate, and now at the helm of a major corporate empire, her journey has been one of breaking barriers and rewriting the script of what’s possible for women in Africa. But even as her legacy takes shape, one can’t help but wonder: what will Daisy Danjuma conquer next?

Born into a family that instilled the values of service and excellence, Daisy’s ascent was inevitable—but the heights she would reach were unimaginable. With a law degree from Ahmadu Bello University, she stormed into Nigeria’s legal scene with a fire that couldn’t be ignored. Her mastery of corporate law made her indispensable to high-profile clients navigating Nigeria’s turbulent economic and legal landscape. Yet, for Daisy, the courtroom was just the beginning.

In 2003, she stunned many by stepping into politics, entering a Senate often dominated by men. Representing Edo South Senatorial District, she wasted no time making her presence felt. Her debates were bold, her bills transformative, and her advocacy for women and children relentless. But beneath her legislative achievements lay a deeper question: Ws Nigeria ready for the kind of change Daisy was determined to bring? Her bold reforms and tireless work on women’s rights left critics scrambling and allies rallying behind her.

Even outside the Senate, her drive to empower women took on a life of its own. Daisy’s advocacy wasn’t confined to speeches or policies—it was action-orientated, creating opportunities for women in education, business, and politics. She championed causes that others feared to touch, building a legacy that continues to ripple through generations.

But just when it seemed Daisy had reached the pinnacle of her influence, she pivoted yet again—this time into the high-stakes world of business. As Vice Chair of South Atlantic Petroleum (SAPETRO), Daisy brought the same tenacity and strategic brilliance that defined her earlier career. Under her watch, SAPETRO expanded its footprint across Africa, venturing into oilfields that seemed out of reach. Her sharp business instincts turned challenges into triumphs, cementing SAPETRO’s place as a major player in the energy sector.

Yet behind the boardroom doors, Daisy wasn’t just chasing profit—she was redefining what ethical leadership looks like in an industry often mired in controversy. Her commitment to corporate governance, transparency, and sustainability earned her admiration and respect, but it also raised an intriguing question: how far could this bold visionary take Africa’s energy ambitions?

Her philanthropic pursuits add another layer to her enigmatic persona. Whether funding healthcare initiatives, empowering underserved communities, or championing education, Daisy’s impact has been profound. But for every life she’s touched, there’s a growing anticipation of what comes next. Her vision for a fairer, more equitable society feels like a promise yet to be fulfilled—and one can’t help but feel the weight of what’s still to come.

Daisy Danjuma’s journey is intriguing. With each step, she has defied expectations, conquered uncharted territories, and set new standards for leadership. But her story is like an unfinished symphony—every accomplishment, every bold move, leaves us wondering about the crescendo that lies ahead.

 

Will she expand her influence further, perhaps onto a global stage? Will her advocacy for women reshape the continent in ways we can’t yet imagine? Or will her next act, as always, take us by surprise? For Daisy Danjuma, the future is not a destination—it is an evolving masterpiece. And for those of us watching, the suspense is irresistible.

One thing is certain: Daisy Danjuma is far from done. Her story is a testament to the power of vision, resilience, and a restless spirit. unwilling to settle. As the chapters of her life continue to unfold, the world waits, breathless, to see how this extraordinary trailblazer will write the next page.

 

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Nigeria’s Oil Industry in 2025: Can It Thrive Amid Global Shifts? https://www.africanleadershipmagazine.co.uk/nigerias-oil-industry-in-2025-can-it-thrive-amid-global-shifts/ Fri, 03 Jan 2025 10:16:07 +0000 https://www.africanleadershipmagazine.co.uk/?p=64844 The world views Nigeria’s oil industry as a paradox: it is both an anchor and a liability. For decades, it has been the driving force behind the country’s economic development,.

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The world views Nigeria’s oil industry as a paradox: it is both an anchor and a liability. For decades, it has been the driving force behind the country’s economic development, contributing significantly to its GDP and global influence. Nigeria appears to be leaning into this paradox, as it continues to rely heavily on oil while making slow efforts to diversify its economy.

 

The Current State of Nigeria’s Oil Industry

As of 2024, Nigeria is producing 1.8 million barrels per day (bpd)—a figure that still lags behind its true capacity. With reserves of 37.5 billion barrels, Nigeria is one of the world’s top 10 holders of crude oil, a powerhouse by any standard. But despite this, the sector faces multiple hurdles—oil theft, inadequate infrastructure, and regulatory inefficiencies—that prevent Nigeria from fully capitalising on its assets.

 

READ ALSO: Major Oil Producing Countries in Africa

 

Security concerns in the Niger Delta, a region infamous for oil theft and pipeline sabotage, continue to disrupt production. Oil theft alone is estimated to cost the country around $3 billion annually. Yet, in the face of these challenges, there are signs of progress. Government initiatives are beginning to stabilise the industry, paving the way for future growth.

 

Government Initiatives and Legislative Reforms

The Nigerian government has embraced change with reforms designed to unlock the sector’s potential. The Petroleum Industry Act (PIA), passed in 2021, is the cornerstone of this transformation, streamlining regulations, promoting transparency, and attracting much-needed investment. The PIA signals a shift towards a more modern and efficient regulatory framework, positioning Nigeria as an attractive destination for foreign investment.

 

Security efforts have already made tangible progress. Operations like Delta Sanity have helped reduce oil theft, pushing production from 1.4 million bpd to 1.8 million bpd. But the journey doesn’t stop there—Nigeria aims for 3 million bpd by 2025, an ambitious target that requires ongoing investment in infrastructure and security. These efforts are not without their challenges, but they offer a clear path to a more secure and productive future.

 

Opportunities in Nigeria’s Oil and Gas Sector

1. The Dangote Refinery: A Game-Changer The completion of the Dangote Refinery in 2025 promises to revolutionise Nigeria’s oil landscape. With a capacity of 650,000 barrels per day, it will become the world’s largest single-train refinery. This development has the power to shift Nigeria from being a net importer of refined products to a self-sufficient producer, saving billions in foreign exchange and driving local economic growth. Beyond its economic impact, the refinery will create thousands of jobs and boost energy security. Though ramping up to full capacity may face hurdles, the refinery’s promise is undeniable.

 

2. Natural Gas: Nigeria’s Untapped Potential While crude oil has long been Nigeria’s focus, its vast natural gas reserves—over 200 trillion cubic feet—are an underexploited asset. The coming years will see greater investment in Liquefied Natural Gas (LNG) infrastructure, expanding Nigeria’s export capacity and meeting rising domestic energy needs. Nigeria LNG, the country’s premier gas exporter, is set to increase its output, pushing towards 40 million tonnes per year by the end of the decade. This growth will open new avenues for foreign investment and position natural gas as a cornerstone of Nigeria’s diversified energy future.

 

3. Renewable Energy: A Green Horizon As the world moves towards a greener future, Nigeria is taking bold steps towards integrating renewable energy into its energy mix. With a commitment to achieving net-zero emissions by 2060, the government is implementing policies that encourage low-carbon practices across the sector. Oil companies seeking exploration licenses must now demonstrate their commitment to reducing emissions, signalling a clear shift towards sustainability. This transition opens up new opportunities for investment in solar, wind, and hydroelectric power, which will drive industrial growth and energy access across the country.

 

Challenges Facing the Nigerian Oil Industry

1. Security Concerns and Oil Theft Oil theft continues to plague the Nigerian oil industry. Criminal syndicates in the Niger Delta region engage in pipeline sabotage, illegal diversions, and theft. Despite military interventions like Delta Sanity, the financial toll remains high. Addressing this issue requires an integrated strategy—secure pipelines, enhanced surveillance, and stronger community engagement. The fight against oil theft is critical not only for preserving revenue but also for ensuring long-term stability in the industry.

 

2. Environmental Degradation and Social Unrest The environmental impacts of oil extraction in the Niger Delta are stark—oil spills, gas flaring, and soil contamination have caused widespread ecological damage. This environmental degradation has been compounded by social unrest, as local communities demand a fairer distribution of oil revenues and better environmental stewardship. The Nigerian government, along with oil companies, must step up efforts to mitigate these issues through more robust environmental policies and by ensuring that the benefits of oil extraction are equitably shared.

 

3. Over-reliance on Oil Revenues Nigeria’s dependence on oil revenues makes it vulnerable to global price fluctuations. As the world increasingly shifts towards cleaner energy, Nigeria must accelerate its economic diversification efforts. Expanding sectors like agriculture, technology, and manufacturing will be crucial to reducing reliance on oil. By nurturing these non-oil industries, Nigeria can build a more resilient and sustainable economy that thrives alongside its energy sector.

 

Economic Forecast and Strategic Outlook for 2025

The World Bank forecasts Nigeria’s GDP growth at 3.7% in 2025, largely driven by developments in the oil and gas sector. However, Nigeria must prepare for external shocks, including oil price volatility and the global energy transition. Diversification into sectors such as technology, renewable energy, and gas infrastructure will be critical to ensuring long-term economic stability.

 

The key challenge will be transforming its oil wealth into a sustainable growth model that extends beyond crude production; one that secures growth, job creation, and resilience in the face of global shifts. The paradox of Nigeria’s oil industry remains, but it holds the potential for transformation into a model of balanced, forward-thinking progress.

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COP29: Africa’s Notes from Baku https://www.africanleadershipmagazine.co.uk/cop29-africas-notes-from-baku/ Wed, 20 Nov 2024 12:27:28 +0000 https://www.africanleadershipmagazine.co.uk/?p=64259 The just-concluded United Nations climate change conference (COP29) saw the Africa Group of Negotiators push for an ambitious $1.3 trillion annual climate finance target by 2030, with a broader objective.

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The just-concluded United Nations climate change conference (COP29) saw the Africa Group of Negotiators push for an ambitious $1.3 trillion annual climate finance target by 2030, with a broader objective of $6.5 trillion overall.

 

With pressing global climate deadlines around the corner, the summit has already borne witness to major decisions and ambitious pledges that could shape the trajectory of global climate action for years to come.

 

Red Alerts

One of COP29’s landmark achievements was the operationalisation of the Loss and Damage Fund. Designed to address the financial burden of climate-induced disasters, the fund offers a lifeline for African nations frequently impacted by floods, droughts, and cyclones. However, concerns remain about equitable access and governance, with African leaders calling for transparency to ensure that the most vulnerable communities directly benefit.

 

READ ALSO: http://UNGA 2024: Africa Calls For Implementation of COP28 Policies

On the inaugural day of the conference, the UN’s World Meteorological Organization (WMO) announces a growing scientific consensus indicating that 2024 is on course to become the hottest year ever recorded in human history, overtaking 2023, which currently holds the record. WMO secretary-general Celeste Paulo remarked, “This is another SOS for the planet. The period from 2015 to 2024 will be the warmest 10 years on record.” She further stated, “The record-breaking rainfall and flooding, rapidly intensifying tropical cyclones, deadly heat, relentless drought, and raging wildfires that we have witnessed in various regions of the world this year are unfortunately our new reality and a foretaste of our future.

 

An agreement was reached among the participants on standards and rules for the establishment of carbon credits. This decision aligns with Article 6.4 of the Paris Agreement, which refers to “a mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development.” Article 6 sets out a framework for a global carbon credit market, enabling the transfer of greenhouse gas emission reductions or removals between nations. This mechanism aims to promote international collaboration in achieving Nationally Determined Contributions (NDCs), which are the plans of countries to reduce emissions and adapt to a changing climate.

 

The “UAE Dialogue,” an essential component of the finance track, seeks to convert the outcomes of the stocktake into implementable strategies. The Africa Group of negotiators has proposed an annual climate finance target of $1.3 trillion by 2030, aiming for a total of $6.5 trillion overall. These numbers highlight the increasing disparity among negotiating factions regarding how to tackle the financial challenges associated with climate adaptation and mitigation.

 

A call to action

Speaking at the event “Africa’s Green Momentum: Harnessing Renewables for Industrialization” during COP29 in Baku, Guterres urged world leaders to act decisively to support Africa’s clean energy transition.

 

Citing the Nairobi Declaration and projects already underway on the continent as evidence of Africa’s commitment to clean energy, he highlighted the transformative power of renewable energy to drive industrialization, economic growth, and sustainable development.

 

“From Cairo to Cape Town, renewable energy can revolutionize lives,” he said, noting its potential to deliver affordable electricity, improve health outcomes, and lower costs for millions.

 

The benefits of renewables extend far beyond energy access, as they offer Africa a chance to spearhead a global clean energy revolution and secure economic prosperity for future generations, Guterres stressed.

 

The Secretary-General called on all countries to update their Nationally Determined Contributions (NDCs) by next year, aligning their policies with global energy transition goals and limiting temperature rise to 1.5 degrees Celsius. He underscored the role of these commitments in attracting investment to align national energy strategies with climate action and development priorities.

 

Guterres emphasized that the G20 nations, as the biggest emitters, must take the lead in phasing out fossil fuels. Nevertheless, he urged all countries to seize the opportunity for progress.

 

Overcoming financial barriers

Despite having 60% of the world’s best solar resources, Africa accounts for only 1% of installed solar capacity, with 600 million people still lacking electricity access.

 

Guterres called for a fundamental overhaul of the international financial system, urging developed nations to meet their climate finance commitments. He advocated for a new global financial framework that includes innovative funding mechanisms, such as levies on shipping, aviation, and fossil fuel extraction, as well as reforms to multilateral development banks to increase concessional lending.

 

These reforms, the Secretary-General said, are critical to bridging the investment gap and driving Africa’s clean energy Guterres also spoke about the disproportionate impact of the climate crisis on Africa, which contributes minimally to global emissions but suffers severe consequences. He called for developed nations to double adaptation financing to $40 billion annually by 2025 and to provide substantial contributions to the newly established Loss and Damage Fund.

 

“Africa belongs at the forefront of the renewables revolution,” Guterres said. “Together, we can harness its green momentum to power a prosperous, sustainable future.”

 

COP29 has underscored Africa’s dual identity in the climate crisis: a victim of global inaction and a beacon of possibility. The summit’s outcomes present an opportunity to transform vulnerabilities into leadership. As Africa moves forward, the challenge lies in converting pledges into policies, plans into projects, and global solidarity into tangible results.

 

The road ahead demands that African leaders, international partners, and local communities work in harmony to shape a green future, ensuring that the continent not only adapts to climate change but thrives in its aftermath.

 

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Nuclear Energy and Africa’s Capabilities: A Sustainable Future or a Risky Bet? https://www.africanleadershipmagazine.co.uk/nuclear-energy-and-africas-capabilities-a-sustainable-future-or-a-risky-bet/ Wed, 06 Nov 2024 10:58:12 +0000 https://www.africanleadershipmagazine.co.uk/?p=64031 Climate change is a global crisis, prompting countries worldwide to seek alternatives to fossil fuels for sustainable energy production. One significant source of power generation is nuclear energy, which has.

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Climate change is a global crisis, prompting countries worldwide to seek alternatives to fossil fuels for sustainable energy production. One significant source of power generation is nuclear energy, which has emerged as a potential solution—albeit a controversial one. In Africa, where access to energy is limited and infrastructure often inadequate, the question of whether nuclear energy can play a pivotal role in the continent’s future is both urgent and complex.

 

Africa’s relationship with nuclear energy is rapidly evolving, with opportunities, challenges, and risks accompanying its integration into the continent’s energy mix. Currently, over 600 million people—nearly 60% of Africa’s population—lack access to electricity, despite the continent’s abundant renewable energy potential in solar, wind, hydro, and geothermal sources.

 

Africa continues to rely heavily on traditional biomass (such as wood and charcoal) and fossil fuels for energy. Meanwhile, energy demand is expected to rise significantly in the coming decades due to population growth, urbanisation, and industrialisation. This projected demand has led some African countries to explore nuclear energy for its capacity to deliver large-scale, continuous, low-carbon electricity.

 

South Africa is the only African country with an operational nuclear power station: the Koeberg Nuclear Power Station near Cape Town, which has been generating electricity since 1984. South Africa’s expertise in nuclear technology sets it apart as the leader in African nuclear energy. The country’s ambitious plans include expanding its nuclear capacity through additional reactors under its Integrated Resource Plan (IRP) 2019. As a member of the International Atomic Energy Agency (IAEA), South Africa has committed to non-proliferation agreements, ensuring that its nuclear programme remains peaceful and transparent.

 

Inspired by South Africa’s success, other African countries—such as Egypt, Nigeria, Kenya, and Ghana—have incorporated nuclear energy into their national strategies. Egypt is actively building its first nuclear power plant in El-Dabaa, in partnership with Russian state-owned nuclear company Rosatom. When operational, the plant will add 4.8 GW to Egypt’s energy grid, substantially increasing the country’s power supply.

 

Nigeria, meanwhile, is working with the IAEA to establish a nuclear regulatory framework and develop the infrastructure needed for its own nuclear power programme. Kenya and Ghana have also expressed interest in nuclear energy, though their initiatives remain in the early stages. Many view nuclear energy as a crucial component in diversifying Africa’s energy sources to alleviate power shortages and drive industrial growth.

 

Nuclear power, one of the most environmentally friendly energy sources, emits minimal greenhouse gases during operation, offering Africa a pathway to reducing carbon emissions and combatting global warming. Additionally, many African nations are highly reliant on energy imports, making them vulnerable to global market fluctuations and supply disruptions. By developing nuclear energy, these countries could achieve greater energy independence and stability.

 

A nuclear energy sector could also create a substantial number of skilled jobs in engineering, construction, operations, and maintenance, thereby stimulating local economies. Nuclear power provides the consistent, large-scale electricity necessary to fuel heavy industries, manufacturing, and other sectors crucial for economic development.

 

However, while nuclear energy offers significant advantages, it also poses substantial challenges. The costs associated with constructing and operating nuclear power plants are considerable, and adherence to international nuclear safety standards and protocols is essential. Misuse of nuclear technology could pose serious national and regional security risks, and the long-term management of nuclear waste remains a critical concern.

 

Nuclear energy holds substantial promise for Africa’s future, but its successful adoption will require meticulous planning, robust governance, and international collaboration. While South Africa has already made strides in nuclear power, many other African nations are still in the exploratory phase. Ultimately, the future of nuclear energy in Africa will depend on the continent’s capacity to develop local expertise, ensure safety and security, and tackle the financial and infrastructural challenges that accompany such ambitious energy projects.

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Somali Coast Oil Exploration: A New Chapter in Maritime Economics https://www.africanleadershipmagazine.co.uk/somali-coast-oil-exploration-a-new-chapter-in-maritime-economics/ Mon, 21 Oct 2024 07:30:12 +0000 https://www.africanleadershipmagazine.co.uk/?p=63768 After decades of civil strife and underutilisation of its natural resources, Somalia has become a key player in the global energy market. With the country’s coast boasting Africa’s longest national.

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After decades of civil strife and underutilisation of its natural resources, Somalia has become a key player in the global energy market. With the country’s coast boasting Africa’s longest national coastline—approximately 3,000 kilometres (1,880 miles)—its offshore reserves are of special interest, especially as global energy demands surge.

A Region on the Brink of Transformation

Recent developments have seen Somalia enter into production-sharing agreements with major international firms such as Coastline Exploration. As of 2022, this U.S.-based company committed to exploring offshore oil blocks in deep water. The company anticipates producing up to 100,000 barrels of oil per day, should exploration lead to commercial discoveries. This projection is particularly significant for a country that has traditionally relied on foreign aid and subsistence-level economic activities.

 

Untapped Resources and Global Interest

Somalia’s energy potential has also drawn the interest of other international players. Turkish seismic vessel Oruc Reis began seismic surveys in Somali waters in 2024, an essential step in pinpointing viable oil and gas drilling sites. Early data from these surveys suggest that Somalia may have up to 30 billion barrels of untapped oil reserves. This would position the nation alongside some of the more significant oil-producing countries globally.

 

Somalia’s strategic location in the Horn of Africa, bordering vital shipping lanes in the Indian Ocean, further enhances its attractiveness to investors. These waters are crucial to global maritime trade, making energy extraction here not just an economic boon but also geopolitically strategic. For international oil companies, entering Somalia presents an opportunity to tap a largely unexplored frontier, while for Somalia, it represents a path toward energy independence and substantial new revenues.

 

Economic and Maritime Impacts

The financial implications of offshore oil extraction in Somalia are vast. Besides generating new revenue streams through oil exports, these ventures could stimulate growth in infrastructure, healthcare, and education. For instance, the $7 million signature bonus paid by Coastline Exploration to the Somali Central Bank, along with an anticipated $50 million investment into the country’s energy sector, underscores the potential economic upliftment​.

 

From a maritime economics standpoint, this development signifies a broader reshaping of global oil and gas routes. Somalia’s proximity to key shipping lanes means that new oil discoveries could influence global maritime logistics. The potential for increased tanker traffic in and around the region would necessitate infrastructure upgrades, including port expansions and security enhancements. Additionally, the burgeoning energy sector could inspire renewed interest in related industries such as offshore drilling, vessel management, and maritime safety.

 

Challenges and Future Outlook

While the prospects are promising, Somalia’s foray into the global oil market has challenges. Political instability, piracy, and regional tensions, especially with neighbouring Ethiopia’s push for Red Sea access, add layers of complexity to the exploration efforts​. However, Somalia has made strides to address these issues, notably passing updated offshore oil and gas regulations in 2022, which provide clearer frameworks for revenue-sharing between companies and the government​.

 

As more international players such as Chevron and ExxonMobil—firms that left the region in the early 1990s due to civil unrest—eye a return, Somalia’s oil exploration could serve as a case study in the delicate balance between economic opportunity and geopolitical complexity.

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Africa’s Fuel Advantage is Powering Progress Through Affordable Transportation https://www.africanleadershipmagazine.co.uk/africas-fuel-advantage-is-powering-progress-through-affordable-transportation/ Tue, 03 Sep 2024 10:36:42 +0000 https://www.africanleadershipmagazine.co.uk/?p=62869 Transportation is a fundamental necessity that facilitates the movement of people around the globe. In Africa, automobiles serve as the primary mode of transportation, and affordable fuel prices can significantly.

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Transportation is a fundamental necessity that facilitates the movement of people around the globe. In Africa, automobiles serve as the primary mode of transportation, and affordable fuel prices can significantly impact the lives of Africans and the continent’s various economies.

Africa’s vast oil reserves present an excellent opportunity to capitalise on this valuable natural resource, leading to lower fuel costs and an improved standard of living across the continent.

According to GlobalPetrolPrices.com, which analyses data from 161 countries, petrol is more expensive than diesel in 84% of all nations. On average, diesel is 9.84% cheaper, but the difference varies significantly across countries and over time. Retail petrol prices are influenced by four key elements: crude oil prices, refining costs, distribution costs, and taxes. The proportion of each element in the retail price varies by country, with production and distribution costs, and particularly taxes, remaining relatively stable over time.

This data suggests that Africa has an advantage over Western nations and can position itself as a major player in the oil industry, with potential for progress and breakthroughs in the energy sector.

Africa’s low petrol prices provide much-needed relief to economies that may already be under financial strain. Reduced energy costs offer stability and economic empowerment to both consumers and businesses.

GlobalPetrolPrices.com lists ten African nations among those with the lowest petrol prices globally. The average fuel price worldwide is currently 1.32 US dollars per litre, unchanged from the previous month. While the fuel prices in Sudan and Libya remained steady from July to August, costs increased in Nigeria, Algeria, Egypt, Tunisia, and Gabon. Ethiopia rose in rank this month, while Angola saw a decline.

Top 10 African Nations with the Lowest Petrol Prices:
Libya
Global rank: 2nd
Fuel price: $0.031 per litre

Egypt
Global rank: 4th
Fuel price: $0.307 per litre

Angola
Global rank: 5th
Fuel price: $0.337 per litre

Algeria
Global rank: 6th
Fuel price: $0.343 per litre

Nigeria
Global rank: 10th
Fuel price: $0.489 per litre

Sudan
Global rank: 20th
Fuel price: $0.700 per litre

Ethiopia
Global rank: 23rd
Fuel price: $0.755 per litre

Tunisia
Global rank: 27th
Fuel price: $0.829 per litre

Liberia
Global rank: 34th
Fuel price: $0.912 per litre

Gabon
Global rank: 41st
Fuel price: $1.008 per litre

 

READ ALSO: Africa’s Innovations in Cross-Border Transportation

Africa’s abundant oil resources offer a powerful lever to drive social progress and economic success. By leveraging its fuel advantage, the continent can empower its people, spur innovation in the energy industry, and take a leading role in the global oil market. However, diversification and prudent management are essential to ensuring long-term success.

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