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According to IRENA, concrete policy actions and massive mobilisation of finance at full speed is required in order to meet the 2030 target. (Image source: Adobe Stock)

Energy

The International Renewable Energy Agency (IRENA) has indicated that the world is at great risk of missing the 2030 triple renewables pledge made at COP28

This prediction has been outlined in the organisation’s ‘The Renewable Energy Statistics 2024’ report. The findings indicate that despite an unprecedented 14% increase of renewables capacity in 2023 – that has made renewables become the fastest growing source of power – significant investment is still required. In fact, it noted, in order to meet the goal set out in the UAE Consensus at COP28, global stakeholders will have to grow renewables capacity at a minimum 16.4% rate annually through 2030.

The current rate of growth will see the 11.2TW 2030 target be missed by 1.5TW, approximately 13.5%. Moreover, if the historic annual growth rate of 10% is fallen back to, then the world will only accumulate 6.5TW of renewables capacity by 2030 – this would miss the target by nearly one third.

Facing failure in renewable deployment

“Renewable energy has been increasingly outperforming fossil fuels, but it is not the time to be complacent,” said IRENA director-general, Francesco La Camera. “Renewables must grow at higher speed and scale. Our new report sheds light on the direction of travel; if we continue with the current growth rate, we will only face failure in reaching the tripling renewables target agreed in the UAE Consensus at COP28, consequently risking the goals of the Paris Agreement and 2030 Agenda for Sustainable Development.”

“Today’s report is a wake-up call for the entire world: while we are making progress, we are off track to meet the global goal of tripling renewable energy capacity to 11.2TW by 2030,” added Sultan Al Jaber, COP28 president. “We need to increase the pace and scale of development. That means increasing collaboration between governments, the private sector, multilateral organisations, and civil society. Governments need to set explicit renewable energy targets, look at actions like accelerating permitting and expanding grid connections, and implement smart policies that push industries to step up and incentivise the private sector to invest. Additionally, this moment provides a significant opportunity to add strong national energy targets in NDCs to support the global goal of keeping the 1.5°C target within reach. Above all, we must change the narrative that climate investment is a burden to it being an unprecedented opportunity for shared socio-economic development.”

In a release around the report, IRENA paid particular attention to Africa due to its tremendous renewable potential and need for rapid, sustainable growth. The continent recorded a modest growth of 3.5%, increasing its renewable power generation to 205TWh in 2022. With the urgency to accelerate this building, IRENA is advancing the Accelerated Partnership for Renewables in Africa (APRA) initiative and is preparing an investment forum focused on APRA’s member countries later this year.

The importance of the continent to global efforts to fight climate change was reiterated at the Africa Energy Forum held in Barcelona last month. Find African Review's full review of the conference at: https://africanreview.com/energy/a-call-to-action-issued-at-africa-energy-forum

The HQ is expected to be completed and handed over by February 2025. (Image source: ECOWAS)

Construction

The ECOWAS Ad-Hoc Ministerial Committee on the Construction of Headquarters of Community Institutions met at the site of the new ECOWAS Headquarters in Abuja, Nigeria, to assess progress

The new building – known as ‘The Eye of West Africa’ – is located along the Airport Road in the Nigerian city and is being constructed from a grant from the People’s Republic of China through the China International Development Cooperation Agency (China Aid). Work began at the site in November 2022 and, according to ECOWAS, substantial progress has been achieved; hitting 33% physical and 45% financial completion. As a result, the construction is expected to be completed and handed over by February 2025.

On the occasion of the committee’s visit, Damtien L. Tchintchibidja, the vice president of the ECOWAS Commission, expressed the appreciation of ECOWAS Institutions to the Federal Republic of Nigeria for the land provided, the duty waivers granted, development permits facilitated and all the other supports towards the commencement of the construction. The vice president also took the opportunity to pay thanks and respect to the People’s Republic of China, stating, “This gesture represents a beacon in the ongoing cooperation between the People’s Republic of China and ECOWAS Member States.”

Yusuf Maitama Tuggar, Minister of Foreign Affairs of the Federal Republic of Nigeria and chairman of the ECOWAS Council of Ministers, thanked his colleague Ministers for their continued commitment to advancing regional integration and socio-economic development of the region.

“The new ECOWAS Headquarters is poised to become a beacon of hope, embodying our shared values and heritage,” he added. “The structure symbolises a promising future for our people – a base from which we will continue to make important strides in regional integration, economic growth, and security.”

The Koné project ranks as one of the highest quality gold projects in Africa. (Image source: Adobe Stock)

Mining

The Council of Ministers of Côte d’Ivoire has awarded the mining permit for the Koné project to Montage Gold Corp in the country

Montage was awarded mining permits covering a total area of 357 sq km for both its Koné and Gbongogo deposits (which are valid for 20 years and 8 years respectively) in addition to several advanced high grade exploration targets, with opportunities to extend as further mine life is added through exploration success. The awarding of mining permits represents the last governmental authorisation required to enable the development and operation of the Koné project with the official decree to be received shortly following today’s Council of Ministers’ meeting.

A unique West African mining opportunity

“We are delighted to be awarded our mining permit which represents a significant milestone in the development of our Koné project and reflects the strong support received from our local stakeholders given our win-win approach focused on local content,” remarked Martino De Ciccio, CEO of Montage. “In addition, we are also pleased to have reached an agreement on land compensation without local communities which further demonstrates the support for the advancement of our project given the significant social and economic benefits that it will unlock for our host communities and government.

“We look forward to rapidly continuing to unlock value for our stakeholders by progressing the Koné project towards an anticipated construction launch by Q1-2025, while continuing to progress our exploration strategy of delineating higher-grade targets that can be slotted into the mine plan from the commencement of the operation.”

Montage has indicated that it is now rapidly advancing exploration at the Koné project with a 30,000-meter drill programme expected to be completed in late July 2024. High grade intercepts have already been received at several targets. A second 60,000-meter drill programme is expected to be launched in late Q3-2024 with the goal of delineating resources at top priority targets, in addition to continuing to drill test other targets.

There are numerous but not insurmountable challenges facing Africa's aviation sector, according to IATA. (Image source: Adobe Stock)

Logistics

The International Air Transport Association (IATA) has called on Africa’s governments to take advantage of the continent’s emerging aviation sector in order to stimulate wider economic and social development

According to the organisation, which represents around 330 airlines, Africa’s airlines are forecast to earn a collective net profit in 2024 of around US$100mn. While this translates into just 90 cents per passenger (below the global average of US$6.14), it can be seen as a success in light of the post-Covid environment and global instability that has coloured the operating environment over the last few years.

“Africa’s airlines are making a collective profit. That is good news. But it is razor-thin and well below the global benchmark. And there are wide variations across the continent where many individual airlines still struggle with losses,” commented Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East. “The demand to travel is there. To meet it, the African airline sector needs to overcome many challenges, not least of which are infrastructure deficiencies, high costs, onerous taxation, and the failure to broadly implement a continent-wide multilateral traffic rights regime. The challenges facing African aviation are significant, but they are not insurmountable.”

To help the continent do so, and realise it’s the enormous aviation potential, IATA has laid out the Focus Africa initiative – a collaborative strategy pooling together the resources from the aviation value chain and build partnerships within countries to meet clear and measurable objectives. It is focused on addressing key challenges and opportunities within the continent’s aviation sector, emphasising six priority areas in the form of Safety, Infrastructure, Connectivity, Finance and Distribution, Sustainability and Future Skills.

“IATA’s Focus Africa initiative is by no means a panacea, but it does lay out a framework to build a stronger aviation sector that will provide even better support to economic growth and social development,” explained Al-Awadhi. “The potential for aviation in Africa is huge. It has 17% of the world’s population yet only contributes about 2% of total global travel. While there are hurdles to overcome, through collaborative initiatives like Focus Africa with our partners including AFCAC, AFRAA and AASA we are addressing critical challenges hindering the advancement of aviation across Africa. Our goal is a safer, more efficient, and better-connected continent, driven by a diverse, skilled workforce to unleash aviation’s potential and unlock the economic and social opportunities.”

South Africa’s SAF opportunity

While encouraging the development of the aviation industry across the continent, IATA also singled out policy makers in South Africa by recognising an opportunity distinct to the country.

As government and industry officials gathered in Johannesburg for the IATA Wings of Change Focus Africa conference, the organisation called for the country to accelerate the development of Sustainable Aviation Fuel (SAF) production.

“South Africa has vast potential to become a leading SAF producer in the region. And there is a waiting market for SAF as airlines work to achieve net zero carbon emissions by 2050,” stated Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist. “More than a strategy in support of aviation’s decarbonisation, it is a strategy for economic development and should be a top priority for the new South African government. Across agriculture, energy, and transportation, new jobs and industries are waiting to be created that would not only help fight poverty but also contribute to greater energy independence.

“Airlines are ready and waiting to purchase SAF as evidenced by the fact that every drop of SAF produced has been purchased and used. But the production volumes are a minute fraction of what aviation needs. That’s why it is essential for governments of countries with production potential, such as South Africa, to embrace what is a unique win-win-win opportunity for economic development, energy transition, and decarbonised air transportation.”

IATA is not the only entity to call for decision makers on the continent to get ahead of the forthcoming SAF surge; Omar Ali Adib of Rolls-Royce also provided this opinion in a recent article published on Africa Review. Discover why the senior vice president believes Africa could become home to a “world-leading” biofuel sector at: https://africanreview.com/transport-a-logistics/africa-s-sustainable-aviation-fuel-opportunity

BII announces a U$20m loan to TerraPay to enhance low-cost, high-speed remittance transfers to Africa, promoting financial inclusion and economic opportunities. (Image source: Adobe Stock)

Finance

British International Investment (BII), the UK's development finance institution (DFI) and impact investor, has announced a US$20mn senior secured loan to TerraPay, a global cross-border payments processor that focuses on remittance transfers into Africa

This investment aims to lower costs, increase speed, and enhance the reliability and accessibility of remittance transfers into the continent, thereby improving financial inclusion.

Lowering remittance costs

Sub-Saharan Africa has the highest remittance costs globally, with an average cost of 8% for sending US$200 in 2022, compared to the global average of 6.2%. This cost is more than double the Sustainable Development Goal target of 3%, according to the World Bank.

TerraPay's network connects traditional money transfer operators, such as Western Union, and digital-only fintechs like Wise, with major mobile money operators in Africa, including M-Pesa, MTN Mobile Money, and Airtel Mobile Money. Its technology-enabled model facilitates real-time, lower-cost digital money transfers, addressing the issues of high transfer fees and slow settlements for the African diaspora.

BII's funding will be used as part of TerraPay's working capital to pre-fund increasing remittance volumes to Africa. The funding will prioritise key African corridors, with high volumes expected in Kenya, Ghana, Egypt, Uganda, Tanzania, Cameroon, Mali, Benin, Cote d’Ivoire, Senegal, and Mozambique.

BII is committing through Lendable's existing senior secured facility, leveraging the partner's expertise in fintech debt investing across Africa and their investment monitoring capabilities.

Chris Chijiutomi, managing director and head of Africa at BII, stated, "Sending money to Africa is expensive. That is why our investment in TerraPay is critical to help increase availability of lower-cost, efficient, accessible, and reliable remittances. This aligns with our goal to support resilient financing and improve economic opportunities on the continent."

Suresh Samuel, managing director and head of fintech at Lendable, added, "We have been supporting TerraPay since 2020, as the company accelerated its growth facilitating remittances across emerging markets. We continue to believe in the importance of increasing digital payments globally and are excited to work with BII in furthering support to TerraPay to expand this mandate."

Africa’s share of global manufacturing only sits at around 2% today. (Image source: Adobe Stock)

Manufacturing

The emerging efforts to raise Africa’s share of global manufacturing have been explored in the latest issue of African Review

Manufacturing was a key topic of scrutiny in the African Development Bank’s (AfDB) recently-published ‘2024 African Economic Outlook’, which sought to influence inclusive growth across the continent. While noting that a “single-minded” focus on development through manufacturing should make way for advancing regional diversity and encouragement of wider sectors, it stated that developing manufacturing and reducing the size of exports of unprocessed raw materials “must be part of the economic transformation strategy of African countries.”

While the continent’s share of global manufacturing sits at a paltry 2% today, the development of the sector is still widely regarded as crucial to its ongoing industrialisation and future prosperity. By shaking off the post-colonial reputation as a feedstock for global industrialised economies, African nations can ensure greater value is captured from their vast pool of resources.

Here, a significant opportunity emerges in the form of the continent’s abundance of minerals critical to the energy transition. Already, Africa is positioning itself at the heart of global critical mineral production with countries such as DRC, for example, responsible for more than 70% of global cobalt output. Calls to maximise the reach of these resources are increasing in volume. Speaking at UNCTAD’s ‘Maximising Africa’s Potential’ event in Addis Ababa, UN Economic Commission for Africa’s deputy executive secretary, Antonio Pedro, remarked, “Imagine the potential if African minerals are processed into African batteries, installed into African cars that are driven across the continent and the world... This would accelerate the deployment of renewable energy and the electrification of transport systems on the continent, create decent jobs and make Africa a competitive hub for green industrialisation.”

Click here to read the full article in the latest issue of African Review, including the initiatives being undertaken to realise the green mineral opportunity and the future market for medical manufacturing.

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