Energy security must become africa’s next industrial strategy, says Lawal

Automobile industry

African nations must completely shift their economic focus from merely extracting raw materials to building an energy-led industrial framework if the continent is to overcome chronic power deficits and unlock sustainable development.
 
This was the submission of Juwon Lawal, a prominent energy executive and business strategist, during an industry briefing.
 
According to Lawal, energy availability can no longer be handled as an isolated utility issue, but must serve as the literal foundation for all macroeconomic planning across the continent.
  
Despite boasting some of the world’s most massive reserves of crude oil, natural gas, strategic green transition minerals and arable agricultural land, Lawal noted that many African economies remain trapped in cycles of low productivity. The structural gap between resource ownership and domestic utility continues to stall growth.
 
“The question is no longer whether Africa has resources,” Lawal noted. “The real question is whether those resources can be transformed into sustainable economic value.”
 
He stressed that the current framework leaves key industrial sectors exposed, adding that “no economy has achieved sustained industrial growth without reliable and affordable energy.”
 
Lawal pointed out that manufacturing, mining, transportation, agriculture, logistics and digital infrastructure remain entirely dependent on a consistent energy supply.
 
As African governments face intense international pressure to meet global climate agreements, the energy expert warned against adopting copycat transition pathways that do not match local realities.
 
He emphasised that for much of the continent, the most urgent priority is expanding basic electricity access for millions of households and small businesses.
 
Lawal advised the continent to craft its own distinct energy transition blueprint.
 
“The transition requires a balanced approach that supports environmental progress while maintaining economic growth,” he explained.
 
To bridge this gap, he called for responsible utilisation of natural gas to power heavy industrial manufacturing and cleaner transport systems, noting that strategic investments in compressed natural gas (CNG) and liquefied natural gas (LNG) networks could immediately improve energy availability for underserved commercial hubs.
 
Lawal affirmed that the transition strategy also requires an aggressive upgrade of midstream and downstream logistics, including ports, pipelines and storage terminals. These links, he noted, are vital to unlocking the full trade potential of the African Continental Free Trade Area (AfCFTA). However, he stated that policy frameworks alone will not spur intra-African trade without massive physical investment.

Lawal noted that regional trade requires more than policy agreements, stressing that it requires practical investment in physical infrastructure, digital systems and institutional capacity.
 
He warned that securing long-term capital for these capital-intensive projects remains a hurdle due to high borrowing costs.
 
“While foreign investors frequently cite high project risks, African enterprises must simultaneously elevate their internal standards to attract institutional lenders,” Lawal stated.
 
To de-risk these multi-million-dollar infrastructure projects, African corporations are being urged to treat operational discipline and financial transparency as core strategic goals. He noted that this internal reform is critical to unlocking cheaper, long-term international finance.
  
Good governance should not be viewed simply as a regulatory obligation,” Lawal observed. “It is a commercial advantage that builds confidence among lenders, investors and business partners.  Ultimately, the goal of securing reliable power is to halt the economic damage of exporting raw materials only to import expensive finished products.
 
“Processing commodities locally is the only viable path to building true economic resilience and capturing global value chains. A robust energy network acts as an economic chain reaction. Reliable power directly supports factories, which create high-skilled jobs, generate stable household incomes and strengthen domestic consumer markets to attract further investment.”
 
Lawal further stressed that Africa’s long-term economic competitiveness will not be determined by the sheer volume of minerals beneath its soil, positing that prosperity depends entirely on building the local industries and human capital capable of processing those resources.
 
“The continent has the opportunity to shape its own industrial future,” Lawal stated. “Achieving that future will require practical policy, disciplined investment, stronger regional cooperation and a commitment to building value within Africa rather than exporting opportunity elsewhere.”
 

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