African executives urge for investments in mini-grids to tackle energy poverty

NAIROBI, Nov. 13 (Xinhua) — Sustained investments in mini-grids are crucial to expanding access to clean energy for off-grid communities in Africa, officials said at a virtual forum Wednesday.

John Ouko, chief operating officer at the African Minigrid Developers Association, an industry lobby, said the continent should explore innovative financing models for implementing community-based projects that promise access to cheaper, reliable, and cleaner electricity.

“Mini-grids should be considered the most cost-effective way to achieve universal energy access in Africa while offering solutions to the climate crisis,” Ouko said at the virtual forum, titled “Financing renewable microgrids in Africa,” adding that pension funds and microcredits should be harnessed to set up small-scale power projects in remote areas of the continent.

According to Ouko, African countries should address funding, technical, and regulatory gaps that have undermined the large-scale mini-grid development, which has negatively impacted rural development and climate action.

He observed that micro-grid developers in the continent require long-term and low-cost debt, friendly regulations, and reskilling of their workforce to establish resilient clean energy systems.

Joshua Amponsem, founder of the Green Africa Youth Organization, an environmental sustainability lobby based in Ghana, said that both the public and private sectors should unlock capital towards the development of mini-grids and help connect 600 million people in Africa who lack access to electricity.

Amponsem acknowledged Africa’s huge renewable energy potential, including hydro, solar, and wind that should be harnessed to set up micro-grids in rural areas to support irrigated farming, agro-processing, and light industries.

Transitioning to green energy is expected to generate 2 million jobs in Africa, according to Amponsem, while mini-grids will support the growth of small and medium-sized enterprises.

He added that mini-grids present a viable pathway to eradicating poverty, bridging the gender gap, and securing a greener future for African communities on the frontline of the climate crisis.

Wolfgang Rams, chief executive officer of Africa GreenTec, a social enterprise, said the continent should leverage blended financing and indigenous technologies to develop additional mini-grids.

Rams added that these mini-grids will be pivotal to boosting internet access in Africa besides providing new revenue streams to farmers, artisans, and small business owners.