African Leaders Meet in Lusaka to Discuss Future

The Continental Energy and Infrastructure Investment Forum (CEIIF) convened in Lusaka this week, addressing the significant challenge of 600 million Africans lacking access to electricity. The forum brought together industry leaders, policymakers, financiers, and investors to explore investment opportunities within Africa’s energy and infrastructure sectors, with a focus on regional trade, economic integration, and industrialization.

Agenda 2063 and Power Development

African Union Commissioner for Infrastructure and Energy, Lerato Mataboge, emphasized the critical role of power in industrialization and digitalization, stating it has been prioritized within Agenda 2063. Zambian President Hakainde Hichilema, opening the conference, called for the swift implementation of energy and infrastructure projects to bolster industrial production across the continent.

Addressing Implementation Challenges

President Hichilema noted a disparity between the generation of ideas and their subsequent implementation in Africa. He urged the forum to focus on overcoming this challenge and ensuring that capital is directed towards project completion. He also highlighted the need for regional and continental bodies like the SADC and AU to streamline energy trade to fully realize the potential of the Africa Continental Free Trade Area.

Regional Power Integration and Market Development

Hichilema cited an instance where Zambia was unable to import power from neighboring countries during a recent drought due to structural limitations within the Southern African Power Pool. Energy experts participating in the forum indicated that a key strategy involves establishing a single electricity market to mitigate the constraints imposed by fragmented national power grids, which currently hinder economic growth and energy access.

Financing Energy Projects

Access to finance remains a crucial factor in unlocking energy projects. Kapumpe Chola, chief executive of First National Bank, emphasized the need for tangible and bankable outcomes rather than solely focusing on dialogue, stating that without adequate energy, continental ambitions are limited.

Addressing Financial Barriers

President Hichilema criticized the “high-risk premium” placed on Africa, which increases borrowing costs. He, along with counterparts from Kenya and Ghana, is spearheading a continental effort to reform the global financial architecture, aiming to lower capital costs and operationalize the Africa Credit Rating Agency to reduce reliance on Western rating agencies.

Project Site Visits

Delegates will participate in two-day visits to key energy and infrastructure projects in Zambia, including the Maamba Energy Expansion Project, the Kafue Gorge Power Station, and the Lusaka South Multi-Facility Economic Zone. The Lusaka South zone is designed to promote manufacturing, innovation, and green energy development.

Forum Organization

The event was organized by the South African Electrotechnical Export Council, the Export Credit Insurance Corporation of South Africa, and the Development Bank of Southern Africa, in partnership with the Zambian government. It serves as a platform for investment in the energy and infrastructure sectors.