Africa’s shift toward cleaner energy is already underway, driven by a fast-growing population expected to nearly double to 2.5 billion by 2050 and a wealth of untapped natural resources.
Energy remains central to the continent’s economic future, but the challenge is delivering power that is reliable, affordable and sustainable.
Around 600 million Africans still lack consistent electricity, making a fair, inclusive energy transition critical as countries try to expand their economies and meet climate commitments, according to BBC News.
“A just transition in Africa means ensuring the shift to ‘cleaner’ energy happens in a way that doesn’t come at the cost of development,” says Rentia van Tonder, head of renewable energy, power and infrastructure at Standard Bank.
“We must decarbonise while also expanding access, creating jobs and building resilient local economies. The reality is Africa hasn’t fully industrialised yet, and that means our energy needs and how we meet them will look different from those of developed countries, with a need to continue investing in fossil fuels alongside renewables for some time.”
Meeting this challenge depends heavily on infrastructure, which requires significant funding and coordination.
A recent example is a $325 million syndicated financing package led and underwritten by Standard Bank that enabled Genser Energy to develop a 430-kilometre natural gas pipeline network in Ghana’s western region.
The system, now expanded to Kumasi, is designed to strengthen key industries such as gold mining, manufacturing and logistics by replacing diesel and heavy fuel oils with a less carbon-intensive option.
Baafour Asiamah-Adjei, CEO of Genser Energy, says the goal was to deliver more reliable and cleaner energy to industry.
Natural gas, though still a fossil fuel, emits less carbon than coal or oil and is often described as a “transition fuel.”
But he acknowledges it still contributes to greenhouse gases, including methane leakage during production and CO2 when burned.
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Van Tonder says Standard Bank’s approach is practical. “We follow a clear decarbonisation strategy.
Yes, we still finance certain fossil fuel projects, but only where there’s a credible plan to reduce emissions and where the project supports broader development goals, like energy access or industrialisation,” she explains.
“Take our work with Genser, as an example. Their infrastructure helps users shift from diesel and liquified petroleum gas (LPG). That’s a big win in terms of starting to reduce emissions and improving reliability.”
Asiamah-Adjei stresses that the transition must protect the most vulnerable. “The energy transition will change lives. But we must ensure it doesn’t cause systemic harm,” he says.
“Communities, in particular, are fragile. If the pace of transition is too fast and economic alternatives aren’t in place, entire regions can be vulnerable to decline, schools, clinics, jobs, everything.”
He adds that many African countries depend heavily on revenues from natural resources. “You can’t just turn off the taps without thinking about how budgets will be funded,” he says.
He also highlights the role of finance. “Banks that invested in legacy infrastructure need pathways to participate in the new energy economy, or risk being left with stranded assets.
A just transition must ensure that all players, including financiers, can adapt,” he explains.
Asiamah-Adjei credits the success of the Genser pipeline to collaboration. “They brought global deal-making capability, but also a deep understanding of the cultural and commercial context,” he says of Standard Bank Corporate and Investment Banking’s role.
“They knew the off-takers, they understood the local risk, and they had the relationships to make it work.”
Van Tonder agrees that the project reflects a larger strategy. “This project aligns closely with our long-term strategic focus on decarbonisation and driving positive impact.
We’re backing projects that reflect the real ambitions and resilience of the continent.”
The human element is also central. Genser invests in developing local talent, working with engineering universities and running a graduate rotation programme with Sponsors for Educational Opportunity (SEO) Africa.
“We train future engineers two to three years ahead of a project’s launch or expansion in a given country,” says Asiamah-Adjei. “They spend time in the field, rotate across departments, and come out with a well-rounded understanding of both technical systems and the communities they’ll serve.”
Standard Bank also focuses on measurable outcomes, embedding environmental and social impact in its sustainable finance solutions. Progress can be tracked and incentivised against agreed sustainability targets.
Both executives believe the lessons are clear: start small, grow steadily, invest in people and partner with institutions that understand Africa’s realities.
“With the right infrastructure, partnerships and mindset, Africa’s just energy transition isn’t just possible,” Van Tonder says, “it’s already underway.”
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Image Credit: BBC
