?30 June 2020 ? 13:00 – 15:30 (CEST)
Virtual conference
The Covid-19 pandemic and global economic shocks are testing the resilience of the energy sector in countries across Africa. While the outlook remains uncertain, these shocks are certain to have major and varied implications for the development of the continent’s energy sector.
Assessing the nascent impacts across the energy sector can help inform the policies and define the actions that will pave the way to economic recovery.
The immediate impacts confronting policy-makers across the continent are varied. For some, the availability, security, and reliability of power systems is putting at risk an effective response to the health crisis, underscoring once again the importance of universal energy access. Confinement policies and the consequent drop in energy demand is increasing pressure on power systems, calling into further question the financial health of state-owned utilities that were already under financial stress. And for others, the disruption to global oil and gas markets has delivered a sudden and sharp drop in export revenue streams. The resulting financial constraints mean that new investments may face delay or cancellations. These conditions of uncertainty create risks and competition for tightening finance, with potential security and sustainability challenges in the longer term.
Setting priorities is vital to ensure action on much-needed energy sector investments, which can stimulate broader economic growth. Opportunities may also arise to rethink African countries’ future energy systems and market structures. In this challenging environment, governments will need to ensure that momentum towards SDG 7 is not lost while they are addressing significant immediate crises. It will be important to consider investment frameworks that help attract the necessary investment to the energy sector in times of need. Concerted action and international support can help countries respond to this crisis.
The IEA’s Africa Energy Outlook analysis, published in 2019, has already shown what Africa’s energy future could look like. To sustain Africa’s economic transformation and deliver energy access for all, we have to ensure energy investments in Africa remain a priority.
Ministerial roundtable key objectives:
- To take stock of the effects of Covid-19 and its economic reverberations across the energy sector in Africa;
- To explore the vital role of energy investments to Africa’s economic recovery;
- To share views on what actions can be taken to ensure that energy investments in Africa remain a priority, and clarify the role that the IEA can take to support these efforts.
Original source: IEA
Published on 25 June 2020
