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Pretoria faces an arduous job in financing its energy transition, which could cost as much as $500bn over the next three decades. The number and size of investments have been limited to date and the scarcity of funding threatens to stymie the government’s climate change targets, but local lenders are now stepping up to bridge some of the financial gap, writes Tonderayi Mukeredzi.

Egypt Prime Minister Mostafa Madbouly secured a $5bn pledge from Saudi Arabia’s Public Investment Fund (PIF) in mid-September, in what Egyptian authorities described as a “first phase” of investment. The plunging value of the Egyptian pound over the past few years has made deals significantly more attractive to Gulf investors and President Abdel Fattah El Sisi’s regime needs the financial support as much as ever.

Reforms to the way multilateral financial institutions approach project finance could help overcome some of the most intractable barriers to the electrification of Africa, including fears of default and high project financing costs which drive away many potential investors. To be meaningful, changes need to be principled and generally applicable, while also anchored in the often-messy reality of doing business across the continent. African Energy is publishing the first in a series of white papers on how this problem might be solved in a way which recognises Africa’s needs and the capabilities of institutions, without introducing moral hazard.

In the final month of the presidential election campaign, Tunisians face a scenario increasingly common across the developing world. With the right approach to decision-making progress in the electricity generating sector is possible, but presidential meddling and growing competition between deep-state interests makes life difficult for technocratic officials, foreign investors and local partners. The quandary is particularly acute in the emerging renewable energy space, writes John Hamilton.

Progress at all five of the large solar photovoltaic concessions first launched in 2019 is an indication that Tunisia’s renewable power sector may be moving forward despite extremely difficult political conditions. Scatec’s farm-out of a stake in its two projects to Japan’s Aeolus represents a major new commitment, backed by carbon credits along with debt financing.

It may not be lending as much as in recent decades, but China retains a dominant position as an economic partner and political ally in Africa. President Xi Jinping is now trying to reposition his country as a source of ‘small but beautiful’ projects, but Beijing will fight to maintain its hold over resource flows, having built up a strong position in many markets that western rivals will find hard to shift, writes Jon Marks.

Over the last two months South Africa and Zambia have enacted new liberalising laws and market regulations in an attempt to attract investment to their power generation, transmission, and distribution sectors.

The concessional loan from German development bank KfW has enabled the project to expand from70MWp to 100MWp, with Chinese contractors now taking on the EPC work.

A small number of floating solar plants are already operating across Africa and over a dozen more are being planned. Advocates say the technology can not only generate power, but also expand the generation capacity of underperforming hydroelectric power reservoirs. As dams age and water becomes scarce, development finance institutions could a play critical role in funding the growth of a still-nascent technology, writes Tonderayi Mukeredzi.

There has been renewed turbulence in South Sudan’s oil and gas sector, with the government stepping in to block a deal for London AIM-listed Savannah Energy to buy upstream assets from Malaysian national oil company Petronas for $1.25bn. It comes as South Sudan tries to resume pipeline exports of Dar Blend crude oil, which have been offline for more than six months.

French asset manager Mirova has invested $15m in renewable energy company SolarAfrica, to support its commercial and industrial (C&I) projects in South Africa.

After Zambia’s Energy Regulation Board (ERB) refused to sign-off on a tariff increase, the government said alternative financing will be found to reduce the 20-hour blackouts caused by historically low levels of rainfall. State utility Zambia Electricity Supply Corporation (Zesco) is facing a perfect storm, with its own generation output and export sales plummeting and public money in short supply as the government grapples with the impact of the drought and a longstanding debt crisis.

Abdelmadjid Tebboune won a second term as president, with a landslide victory in Algeria’s 7 September election. However, he then joined his two opponents in raising questions about irregularities and the regulator’s handling of the poll.

West Africa Energy’s nearly-complete thermal plant at Cap des Biches will bring much-needed baseload capacity to Senelec’s network, supporting further renewable power projects. Meanwhile, the ruling Pastef party has started an audit of energy contracts awarded by the previous regime – with gas-to-power projects included in its scope, writes Waly Dione Faye in Dakar.

The nominally ‘independent candidate’ Abdelmajid Tebboune seems set for a second term when Algerians vote in the 7 September presidential election. He has promised accelerated investment in electricity and other infrastructure, a more responsive business environment and faster delivery of jobs and social services – with big new hydrocarbons deals to pay for it all.