PwC has said investment in Africa’s renewables, oil and gas is pivotal to the continent’s growth.

PwC, in its newly launched report, titled: ‘Africa Energy Review 2023: Africa’s challenges and opportunities in the energy transition’, stated that the continent has the potential to meet domestic energy market demand and deliver into international markets, but that it needs to act now to seize the opportunity

The report stated that Africa is progressing positively in its efforts to make a clean energy transition as several countries on the continent are leveraging its enormous renewable energy potential.

The report stated that efforts need to be matched with the development of fossil fuel energy resources for Africa to make the transition faster to reap the full range of its benefits.

PwC Africa Energy, Utilities and Resources Leader, Andries Rossouw, said despite the continent’s enormous fossil fuel and renewable energy potential, it faces high energy poverty levels.

According to him, African countries are also faced with the challenge of how to balance energy security, climate change and sustainable development objectives.

Rossouw said it has become increasingly clear that Africa plays a critical role in addressing global energy needs, noting that the future of African energy is lower carbon technologies, driven by strategies that could see oil, gas and renewable production grow while reducing emissions.

He said Central Africa’s energy sector is dominated by Angola’s oil exports, which is the only country that has started to invest in renewables.

The PwC Africa Oil and Gas Leader, Pedro Omontuemhen, said Africa’s decarbonisation is important, but that eradication of energy poverty and improving energy security need to be considered.

He said this can be done if governments and the private sector collaborate to ensure investments in new technologies are optimised.