A “pay as you go” approach could be among funding solutions to help Africa move to clean energy projects as access to capital remains an issue, says Demestrios Papathanasiou, global director for the World Bank's energy and extractives department.
He told a panel discussion on the industrialisation of Africa at the Investing in African Mining Indaba in Cape Town on Tuesday this could help unlock growth in the renewables market in Africa.
“It is important that we have the appropriate legal framework that allow 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 a cost as possible,” he said.
Nechan Naicker, founder and CEO of the Megamillion Energy Group, told the panel discussion that Africa can use its endowment of minerals including copper, nickel and lithium used in the production of energy technologies, including electric vehicles and wind turbines to leapfrog from being an extractive to a manufacturing hub.
Using its raw materials, Africa can partner with developing countries to grow its economy, he said. “This is a great opportunity for partnerships.”
Without Africa, he said there would be no electric vehicles.
“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 with companies and share technology intellectual property and in exchange Africa can open doors for these companies and countries to get access to these critical minerals.”
Megamillion is focused on producing lithium-ion batteries in South Africa.
Naicker said before Covid, the company's representatives 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 with 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 economy,” he said.
Nicole Uys, a PhD candidate under the Mineral to Metals Initiative, said Africa needed to be clear in 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 an environmental side of things, a hybrid is probably a better way to go, and also given [the] long distances we have within South Africa.”
Business Times
Calls for pay as you go funding for renewables
South Africa has the minerals used in the production of energy technologies, and can leapfrog from being an extractive to a manufacturing hub
Image: 123RF/VACLAW VOLRAB
A “pay as you go” approach could be among funding solutions to help Africa move to clean energy projects as access to capital remains an issue, says Demestrios Papathanasiou, global director for the World Bank's energy and extractives department.
He told a panel discussion on the industrialisation of Africa at the Investing in African Mining Indaba in Cape Town on Tuesday this could help unlock growth in the renewables market in Africa.
“It is important that we have the appropriate legal framework that allow 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 a cost as possible,” he said.
Nechan Naicker, founder and CEO of the Megamillion Energy Group, told the panel discussion that Africa can use its endowment of minerals including copper, nickel and lithium used in the production of energy technologies, including electric vehicles and wind turbines to leapfrog from being an extractive to a manufacturing hub.
Using its raw materials, Africa can partner with developing countries to grow its economy, he said. “This is a great opportunity for partnerships.”
Without Africa, he said there would be no electric vehicles.
“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 with companies and share technology intellectual property and in exchange Africa can open doors for these companies and countries to get access to these critical minerals.”
Megamillion is focused on producing lithium-ion batteries in South Africa.
Naicker said before Covid, the company's representatives 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 with 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 economy,” he said.
Nicole Uys, a PhD candidate under the Mineral to Metals Initiative, said Africa needed to be clear in 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 an environmental side of things, a hybrid is probably a better way to go, and also given [the] long distances we have within South Africa.”
Business Times
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