How Africa Is Positioned to Gain From a Just Energy Transition
For decades, the African continent, similar to much of the Global South, has been locked into extractive economic models. These systems have left countries with limited energy access, missing value chains, and very few manufacturing industries of their own.
Over time, it has become evident that these structures were not accidental. Experts argue that post–World War II policies and financial systems were designed to control manufacturing, restrict self-sufficiency, and keep developing regions dependent on raw material exports. Despite the continent’s vast natural wealth, many African nations remain burdened with energy poverty, food insecurity, and unsustainable debt.
According to Joab Okanda, a Climate, Energy, and Development Expert, energy lies at the center of Africa’s development ambitions.
“Africa’s transition is not about climate change; it is an economic development imperative,” Okanda says. “It will break the extractive supply chains that still define our economies in the 21st century.”
He notes that the infrastructure built during the extractive era, from railways to ports, was designed to move resources out of the continent rather than stimulate local processing or manufacturing. The result has been the export of wealth and the retention of poverty.
“The resources were never intended to benefit the communities where they are found,” he adds. “With renewable energy, solar, wind, and geothermal, Africa can finally build self-sufficiency and energy independence.”
A Continent Moving, Slowly, Toward Transition
Across Africa, countries are developing Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) despite the challenges in financing these projects aligned to the reduction of carbon emissions.
These frameworks are crucial in guiding investment and aligning policies with climate and development goals; however, for implementation, there is a need for adequate climate finance flow in the form of concessions or grants.
However, only a few have developed comprehensive mitigation plans, and even fewer have set clear timelines for phasing out fossil fuels. Despite rising investment in renewable energy, fossil fuels still dominate.
Okanda warns: “Investments in renewables are increasing, but investments in fossil fuels are also increasing.”
Many developing nations remain net importers of fossil fuels because they lack the resources to invest in large-scale clean energy infrastructure. This compounds the challenges faced within financial instruments of the multilateral discussions, with greater needs of climate finance flowing to the Global South being evident.
He cites Nigeria as an example: a country rich in oil but where millions still lack basic electricity access. “Oil and gas will not develop this continent,” he stresses.
Financing the Transition: The Missing Link
The just energy transition, which must be affordable, accessible, and equitable, is expensive. It requires new grid systems, storage technologies, transmission lines, and local manufacturing capacity.
Yet Africa received only 2% of the more than USD 2 trillion invested globally in renewable energy over the last two years.
This funding gap exposes deeper issues embedded in the global financial system, from the conditions tied to loans and concessions to the barriers in accessing private capital.
Heading to COP30: What Africa Wants
As Africa prepares for COP30 in Brazil’s Amazon region, the absence of a formal negotiation track on fossil fuel phase-out has frustrated civil society organizations (CSOs).
They are calling for a COP cover decision to operationalize paragraph 28 of the COP28 decision on fossil fuel phase-out, with developed countries taking the lead.
A key principle they are pushing for is Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
This ensures that developing nations are not penalized for lacking the historical emissions and financial capacity that wealthier nations possess.
For countries that rely on fossil fuel export revenue, transition also raises concerns about economic stability. Okanda argues that fossil fuel industries survive largely because of subsidies.
A holistic approach would be one that includes economic diversification and skills development, which is needed for a just phase-out.
As Africa moves toward COP30, two priorities stand out: addressing energy poverty and ensuring access to affordable, clean, and equitable energy. This is not just about climate action but rewriting Africa’s development pathway.
A future powered by renewable energy is a future where Africa controls its value chains, fuels its own industries, and secures sustainable development. The just energy transition is Africa’s opportunity to move from extraction to transformation, and from dependence to self-reliance.
