Demetrios Papathanasiou, global director for the World Bank's energy and extractives global department, said on Tuesday “pay as you go” could be among funding solutions to help Africa move to clean energy projects as access to capital remains an issue.
He told a panel discussion on the industrialisation of Africa at the Investing in African Mining Indaba in Cape Town that pay as they go is among funding methods that can unlock growth in the renewables market in Africa.
“It is important that we have the appropriate legal framework that allows banks and corporates to provide this type of finances to consumers. The whole clean energy challenge around the world is a question of financing; it is a question of finding a way to provide financing which is long term and at as low cost as possible,” he said.
Also speaking at the panel discussion, founder and CEO Nethan Naicker of the Megamillion Energy Group said Africa's critical mineral endowment could pave the way for the continent leapfrog from being the world's “extractive” to a manufacturing hub.
Naicker said that the continent can use its endowment of minerals including copper, nickel and lithium used in the production of energy technologies including electric vehicles and wind turbines.
Naicker said using its raw materials, Africa can partner with developing countries to grow its economy.
“This is a great opportunity for partnerships, for a win-win situation. Partnerships are critical, we cannot afford to fail. Without Africa there would be no electric vehicles, full stop. You can have the fanciest building and the latest equipment but if you don’t have the raw materials, you are dead in the water.
“This is a great opportunity for Africa to leverage the opportunity to partner companies and share technology and intellectual property, and in exchange Africa can open doors for these companies and countries to get access to these critical minerals,” he said.
However, he said partnerships needed to add value, including creating jobs and localisation. Megamillion is focused on producing battery and lithium-ion cells in South Africa.
Naicker said before Covid-19, the company toured Europe to visit many battery manufacturing companies and suppliers.
“They either laughed at us or ignored us, we could not get an audience. They did not see the value of partnering an African partner. We see the value of creating partnerships between Africa and other players.
“Africa is endowed with huge supplies of battery minerals and so it’s Africa’s opportunity to leap from being an extractive economy into a manufacturing opportunity,” he said.
Nicole Uys, a PhD candidate under the Mineral to Metals Initiative, said Africa needed to be clear of its priorities in creating a local demand for electric vehicles.
She said South Africa was going to go for a hybrid route rather than a plug-in route.
“I don't foresee us transitioning completely from our fossil fuel situation. If you look at the environmental side of things, a hybrid is probably a better way to go and also given long distances we have within South Africa,” she said.
TimesLIVE
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