World
Pathways Towards Africa’s Energy Security
By Kestér Kenn Klomegâh
Today, African countries face major challenges in ensuring energy security. Several reports indicate Africa is experiencing rapid population growth, rising unemployment, persistent ethnic conflicts and a lack of good governance. Research further shows worsening energy crisis combined with the factors mentioned are seriously constraining economic growth on the continent.
It is clear that to solve these problems a large-scale development programme is required, including a strategy based on achieving the UN sustainable development goals. Experts believe that nuclear technologies can become a driver for socio-economic development and a comprehensive solution to systemic continent-wide problems. Others trust and argue that ‘energy mix’ as a more sustainable way out in creating the energy base for domestic utilization and for industrialization.
Energy is highly essential for aspects of large-scale development. The energy deficit is severely hampering Africa’s efforts to improve the quality of life, hindering effective industrial production. World Bank President, Ajay Banga, and his AfDB counterpart, Dr Akinwumi Adesina, have stated approximately 600 million Africans lack access to electricity (energy) and this unfortunate situation is creating significant barriers to health care, education, productivity, digital inclusivity, and ultimately job creation.
On their part, the World Bank and the African Development Bank (AfDB) are partnering to provide electricity access to, at least, 300 million people in Africa by 2030. According to Banga and Adesina, it would require an additional policy action from African governments, financing from multilateral development banks, and private sector investment to see this through. This also depends on the kind of energy provided in Africa.
That however, leaders of African governments are keenly interested in adopting nuclear energy to end chronic power deficit but some maybe forced either to keep on postponing or completely abandon the project primarily due to lack of finance or credit guarantees.
Within the framework of the 2018 BRICS (Brazil, Russia, India, China and South Africa) summit held in Johannesburg, South African President Cyril Ramaphosa told his counterpart, Vladimir Putin, at a bilateral meeting that South Africa was not ready to renew the agreement on the construction of nuclear power plants in South Africa.
Putin raised the subject of a nuclear deal at a private meeting with Ramaphosa, but his host said Pretoria could not sign such a deal for now. Ramaphosa has put nuclear expansion on the back burner since taking office as president, saying “it is too expensive” and has focused instead on election campaign pledges to revive the economy and crackdown on corruption.
Ramaphosa said “We have to look at where the economy is – we have excess power and we have no money to go for a major nuclear plant building. The nuclear process has to be looked at in the broad context of affordability.”
Under Jacob Zuma, South Africa championed plans to build as many as eight reactors that would generate 9,600 megawatts of energy starting from 2023 and cost as much as $84 billion – a programme critics say the country can’t simply afford and doesn’t absolutely need.
There is only one nuclear power plant on the entire African continent, namely, the Koeberg nuclear power station in South Africa. Commissioned in 1984, Koeberg provides nearly 2,000 megawatts which is about 5% of installed electricity generation in South Africa.
Russian Foreign Minister Sergey Lavrov reiterated, as always, in an interview with the Hommes d’Afrique magazine posted to the ministry’s official website, that Russia and African countries were cooperating on high technology and Russia is highly committed to contributing towards sustainable development in Africa.
According to him, “Rosatom is considering several projects that are of interest to Africans, for instance, the creation of a nuclear research and technology centre in Zambia. Nigeria has a similar project. There are good prospects for cooperation with Ghana, Tanzania and Ethiopia. Talks are underway on the construction of a nuclear power plant in South Africa.”
Foreign and local Russian media further reported that Russia wanted to turn nuclear energy into a major export industry. It has signed several agreements with as many as 14 African countries with no nuclear tradition, including Rwanda and Zambia, and is set to build a large nuclear plant in Egypt.
“Indeed, Rwanda has just joined the chorus by signing an MOU with the Russians to build a nuclear power plant. This is something of a joke. How will this be financed? Rwanda’s annual budget is US$3 billion. A nuclear power plant will cost not less than $9 billion which is equivalent to Rwanda’s entire Gross Domestic Product,” David Himbara, Rwandan-Canadian Professor of International Development at Canada’s Centennial College, wrote me in an emailed interview query.
Professor Himbara said that Rwandan President Paul Kagame always believed that he must validate his supposedly visionary and innovative leadership by pronouncing grand projects that rarely materialized.
Nonetheless, Ghana has also signed a Memorandum of Agreement with the State Atomic Energy Corporation of the Federation of Russia for the construction of a nuclear power plant. The plant will produce up to 1,200 megawatts. The Russian reactor will cost a minimum of $4.2 billion. The financing scheme has not been finalized. It will take about eight to ten years from site feasibility studies to the commissioning of the first unit.
The International Atomic Energy Agency’s 2017 Report concluded that Ghana is still in an early phase of developing nuclear energy. So far, Ghana has enacted a comprehensive nuclear law and established an independent Nuclear Regulatory Authority.
In June 2024, Dr Robert Sogbadji, deputy director in charge of nuclear and alternative energy, explained to this article author that Ghana would select, by December 2024, a foreign company to build its first nuclear power plants. Ghana is working steadily with its vendor partners with serious considerations on favourable financial terms and technology. Currently, Ghana has identified two sites to accommodate its first nuclear power plant and is ready to identify a vendor country and technology by the end of 2024. Russia, China, France, the United States and Korea are the leading contenders for vendor identification.
In accordance the Ghana Energy Transition Framework, Ghana seeks to provide energy security and address energy poverty as well as reduce the cost of electricity by further diversifying the energy mix with gas thermal, hydro power, nuclear power, solar, wind and other modern renewables. Since Ghana has exhausted all its large hydro potentials, Ghana seeks to nuclear and gas thermal power as the base-load to support the intermittent renewables.
In the case of Zambia, under the agreement that was concluded in December 2016 to build a nuclear deal worth $10 billion. Shadreck Luwita, Zambian Ambassador to the Russian Federation, informed that the processes of design, feasibility study and approvals regarding the project have almost been concluded.
The Zambian Government hopes that upon commissioning of this project, excess power generated from this plant could be made available for export to neighbouring countries under the Southern African Development Community Power Pool framework arrangement, he said.
In late February 2020, Chairperson of the Federation Council (the Upper House or the Senate), Valentina Matviyenko, headed a Russian delegation on a three-day working visit aimed at strengthening parliamentary diplomacy with Namibia and Zambia.
According to an official release from the Federation Council, the visit was within the broad framework mechanism of parliamentary consultations between Russia and African countries. The key focus are on political dialogue, economic partnership and humanitarian spheres with Namibia and Zambia.
The delegation held talks with President Edgar Lungu at the State House in Lusaka, Zambia. The delegation referred to their visit “as a reciprocal visit” and emphasized unreserved commitment to strengthen political dialogue and then re-affirmed interests in broadening economic cooperation with Zambia.
There was an in-depth discussion construction of the nuclear plant. Under the agreement that was concluded in December 2016 the construction of the nuclear plant was estimated at $10 billion. The processes of design, feasibility study and approvals regarding the project concluded. Russia was unprepared to make a financial commitment, and Zambia lacked adequate funds to finance the project.
Matviyenko said: “Now the start of the construction of a center for nuclear science and technology has been suspended due to financial issues. I would like to say that the request submitted to the Russian president is being carefully considered by the ministries and departments. I’m confident that we will jointly find options to promote funding to roll out the construction of a centre for nuclear science and technology.”
Of course, the construction of the nuclear plants will qualitatively change the economy of Zambia, not only to fully meet its electricity needs, but also to export it to other southern African countries. The Zambian government refers to it as revenue generation tool using the phrase – “this plant could make available for export to neighbouring countries under the Southern African Development Community Power Pool framework arrangement.”
In his discussion, Dr. Scott Firsing, a Research Fellow at Monash University South Africa, says Africa and the world needs nuclear, along with solar, wind, hydro, and geothermal, for cleaner energy. Africa can leapfrog outdated technology and help lead a new clean energy revolution.
He believes that “nuclear will always have a role in energy generation because it’s the best way of producing large amounts of carbon-free electricity. The key hindrance is the cost of producing nuclear energy and how best to deal with nuclear waste so as to maintain safe environment, the risk that it poses from poor handling and management.”
Professor Stephen Thomas, a Nuclear Economist from the University of Greenwich in the United Kingdom explains that African countries lack the nuclear expertise and infrastructure, Most important, they lack the financing capability. Russia claims to offer adequate finance, but that claim of preparedness to support construction of nuclear plants across Africa has not been demonstrated outside centrally planned economy.
“Nuclear power is an expensive diversion from policies that could meet the objectives of improving the reliability of electricity supplies in Africa, making power affordable for consumers and meeting environmental goals,” he wrote in an emailed interview.
Thomas added: “Nuclear is too high an economic risk for countries that cannot afford to make big mistakes. However, they must be guided by Chernobyl disaster in Ukraine and Fukushima in Japan, millions of people are still suffering from radiation and radiation related diseases till today.”
Currently, many African countries are facing an energy crisis, for both domestic and industrial use. Energy poverty affects millions of their citizens. Over 600 million in Sub-Saharan Africa out of more than one billion people still do not have electricity. The industrial sector needs power for its operations and production for the newly established single continental market.
It is in this context that several African countries are exploring nuclear energy as part of the solution. Russia is on a charm offensive across Africa signing and re-signing agreements with many governments to build nuclear power plants. After the first Russia-Africa summit, it has, as an exceptional case, granted a $29 billion loan for construction in Egypt based on its strategic bilateral relations.
The nuclear agreement was signed as far back as 2015. For now, it is difficult to say how other African countries would finance the construction of their plants compared with Francophone African leaders bartering their natural resources for Russia to provide security and undertake various infrastructure projects. Burkina Faso’s nuclear ambitions went viral after signing a memorandum of understanding, not yet an agreement, over nuclear power with Russia in 2023.
For more than 30 years, Russia has been pushing for post-Soviet relations, but with nuclear energy diplomacy Africans have to wait for another generation. The dreams of building nuclear plants are, in other words, far from reality, and will hold back the full realization of the African Continental Free Trade Area (AfCFTA) and sustainable development goals under AU Agenda 2063.
World
African Union’s Summit Leaves Little Hope to Advance Agricultural Transformation in Africa
By Kestér Kenn Klomegâh
Perhaps it was the most crucial summit held on January 9th to 11th in 2025 with a focus to raise agricultural productivity, increase public investment in agriculture, and stimulate economic growth through agriculture-led development, and ultimately seeks pathways to support African countries eliminate continent-wide hunger and reduce growing poverty.
During these past several years, African governments have taken delight in increasing imports of basic agricultural produce which could be cultivated locally.
Import substitution policy is seemingly not part of any discussions during their ministerial meetings, instead devoted time on how to approve huge budgets for agricultural products from foreign sources.
It has also taken the African Union (AU) years to initiate an agricultural programme directed at ensuring food security and cutting poverty in the continent. This cutting-edge initiative forms an integral part of the broad AU Agenda 2063.
Considered as the most ambitious and comprehensive agricultural reform effort ever undertaken in Africa, it was first launched in 2003 following the Maputo Declaration and reaffirmed in 2014 in Equatorial Guinea with the Malabo Declaration.
It has emerged as the cornerstone framework for driving agricultural transformation across Africa and represents a fundamental shift toward development that is supposed to be fully owned and directed by various African governments.
That, however, the early January Kampala summit, attended by Ministers of Agriculture from the AU’s 55-member states, thoroughly deliberated on implementing aspects of the 10-year programme, primarily to be pursued, in different stages, by stimulating investment, fostering partnerships, and empowering vulnerable smallholder farmers. Notably, the programme is set to run from 2026- 2035.
Without a single doubt, the drafting the programme which underwent a rigorous review process, took a full decade to complete; from 2014, in Equatorial Guinea with the Malabo Declaration to Kampala, Uganda, in 2025. And that what is appropriately referred to as an effective continental organization – the African Union.
The drafting of the strategy was undertaken by a broad spectrum of stakeholders including the Regional Economic Communities, African experts and researchers, farmers’ cooperatives and organizations, development partners, parliamentarians, private sector groups, women in agriculture and youth groups.
According to the official release indicated that Africa’s food security remains a pressing challenge, exacerbated by climate change, conflicts, rapid population growth, and economic disruptions.
Currently, over 280 million Africans suffer from chronic hunger while food systems struggle to meet rising demands.
Therefore, the 10-year programme is planned to address these issues by promoting climate-resilient agriculture, improving infrastructure, reducing food waste, and enhancing regional trade in agricultural goods. This is in a bid to equip Africa to feed itself sustainably.
At the Kampala ministerial meeting, Prime Minister of the Republic of Uganda, Robinah Nabbanja, while recalling important statistics that point to the richness of African soils, abundance of arable land and fresh water, and a 60% population engaged in agriculture, expressed the highest shame that the continent’s food imports cost up to $100 billion.
“This summit should come up with concrete proposals on how Africa can come out of such an undesirable situation. For us to guarantee our future as Africans, we must feed ourselves,” she told the gathering in a tectonic language.
The Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment at the African Union Commission, Ambassador Josefa Sacko, commented on the importance of the strategy, saying it “aims to boost food production, expand value addition, boost intra-Africa trade, create millions of jobs for the youth and women, build inclusive agrifood value chains, and build resilient and sustainable agrifood systems that will withstand shocks and stressors now and in the future.
Furthermore, we are dedicated to strengthening governance through evidence-based decision-making and enhancing accountability among all stakeholders. Inclusivity is a fundamental aspect of our approach; we will ensure that women, youth, and marginalized groups have access to resources, thereby facilitating their equitable participation in the agrifood sector.”
Dr Girma Amente, Minister of Agriculture of the Federal Democratic Republic of Ethiopia, whose Prime Minister Dr Abiy Ahmed, is the Champion of the Comprehensive Africa Agriculture Development Programme (CAADP) Strategy and Action Plan 2026- 2035, highlighted how Ethiopia has cascaded CAADP into the national agricultural investment plan (NAIP).
“The plan emphasizes the importance of increasing public investment in agriculture, which is crucial for achieving the CAADP target. Ethiopia has significantly increased its agricultural budget allocation and has demonstrated its commitment by meeting the 6 per cent annual growth target of CAADP.
The implementation of the National Agricultural Investment Plan (NAIP) has contributed to consistent improvements in annual agricultural production, elevating both crop yields and overall food and livestock production, and also performed better in addressing the resilience targets of the CAADP,” explained Girma Amente.
In his turn, Uganda’s Minister of Agriculture, Animal Industry and Fisheries, Frank Tumwebaze, who led the drafting of the CAADP Strategy and Action Plan in his capacity as the Chair of the Specialised Technical Committee of the AU on Agriculture, Rural Development, Water and Environment, stressed the need to move into implementation of the strategy, as soon as the summit ends.
“The planning phase of the Kampala CAADP Agenda ends during this Summit. We must, therefore, move into implementation and execution mode. It is by focusing on execution that we can make a meaningful impact to the continent and its people. We must move, not with the times, but ahead of times.
“This calls for advances in technological research and practices, building agricultural systems that are resilient to climate change and other shocks, agro-industrialization, and the like,” according to Frank Tumwebaze.
The three-day Extraordinary Summit in Kampala was organized to adopt the 10-Year CAADP Strategy and Action Plan to advance agricultural transformation and food systems in Africa. But that was dominated by high-level speeches, with little hope of concretely addressing key questions relating to ensuring food security in the continent.
The majority of African countries hold steadfastly to maintain the status quo, ready to allocate large part of their annual budgets to increase imports. There was little hope for any significant results and remarkable change in driving agricultural transformation across Africa after second day of the summit, dedicated to deliberations by Ministers of Foreign Affairs, and the 11th January meeting by Heads of State and Government.
World
Justin Trudeau Resigns as Canadian Prime Minister
By Adedapo Adesanya
The Prime Minister of Canada, Mr Justin Trudeau, has resigned as the country’s ruling Liberal Party leader amid growing discontent in the North American country.
Mr Trudeau’s exit comes amid intensified political headwinds after his finance minister and closest political ally abruptly quit last month.
Mr Trudeau, who said he would remain in office until a new party leader is chosen, has faced growing calls from within his party to step down.
Polls show the Liberals are set to lose this year’s election to the Conservative opposition.
“As you all know, I’m a fighter,” Mr Trudeau said on Monday, but “it has become obvious to me with the internal battles that I cannot be the one to carry the Liberal standard into the next election,” he stated.
His exit comes as Canada faces tariff threats from US President-elect, Mr Donald Trump.
The Republican and his allies have repeatedly taunted Mr Trudeau in recent weeks, with Mr Trump mocking Canada as the “51st state” of the US.
Mr Trudeau also lamented that the Conservative leader, Mr Pierre Poilievre, is not the right vision for Canadians.
“Stopping the fight against climate change doesn’t make sense,” he tells reporters, adding that “attacking journalists” is “not what Canadians need in this moment”.
“We need an ambitious, optimistic view of the future, and Pierre Poilievre is not offering that.”
Mr Trudeau also said he was looking forward to the fight as progressives “stand up” for a vision for a better country “despite the tremendous pressures around the world to think smaller”.
He also clarified that he won’t be calling an election, saying the Canadian parliament has been “seized by obstruction, filibustering and a total lack of productivity” for the past several months.
“It’s time for a reset,” he said, adding that, “It’s time for the temperature to come down, for the people to have a fresh start in parliament, to be able to navigate through these complex times.”
World
African Startups Raise $2.2bn in 2024
By Adedapo Adesanya
Start-ups in Africa raised $2.2 billion in 2024 in funding across equity, debt and grants, lower than the $2.9 billion raised in 2023 by 25 per cent amid a continued slowdown after a peak of $4.6 billion recorded in 2022.
The Big Deal noted that this excludes exits – which is when investors realise a return on their investments, most likely when the startup has become profitable or when there is a change of ownership.
The funding slowdown has occurred for consecutive years due to a wider global funding freeze impacted by macroeconomic developments and geopolitical events as well as a change in market offering trend leading to funding going elsewhere.
There have also been concerns about inflated valuations, business sustainability, and increased due diligence and scrutiny from investors.
For the review year, there wasn’t much funding activity as $800 million (36 per cent) of the total funding was computed in the first six months, while the remaining $1.4 billion came in the second half of 2024.
The $1.4 billion raised in H2 alone (+25 per cent YoY and +80 per cent compared to H1), made it the second-best semester since the beginning of the ‘funding winter’ in mid-2022.
This development was considerably driven by two deals in the fourth quarter of last year, which minted two fresh unicorns in the African startup space, in the form of Nigeria’s Moniepoint and South Africa’s Tyme Group.
This was the first such event since early 2023, as the companies joined the exclusive club that has MNT-Halan, Interswitch, Flutterwave, Chipper, OPay, Andela, and Wave as members.
Some of the raises reported include Yellow Card raising $33 million in October to fund its growth and expansion, JuicyWay raising $3 million pre-seed to facilitate affordable cross-border payments, as well as Seedstars Africa Ventures raising $42 million in its first-ever round to help pioneering African startups in climate, food systems, energy, and payments infrastructure sectors.
The data showed that a total of 188 ventures raised $1 million or more in 2024 (excluding exits), which is just 10 per cent less than in 2023 (169 ventures).
On the exit front, there were 22 exits made public last year (up 10 per cent) versus 20 in 2023.
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