South Africa’s G20 presidency: A defining moment for Africa’s energy transition

As South Africa prepares to host the G20 for the first time on African soil, the event carries historic weight, not only for the nation but for the entire continent. It marks a defining moment to place Africa’s energy priorities at the center of the global agenda, transforming the narrative from one of energy deficit to one of innovation, inclusion, and leadership.

The theme chosen for South Africa’s presidency, Inclusive Growth and Prosperity through Global Cooperation, perfectly encapsulates the spirit of Africa’s just energy transitions: collaborative, equitable, and anchored in the industrialisation and socio-economic empowerment of its people. This year’s G20 provides a powerful platform to demonstrate that African nations are not passive recipients of global policy but active architects of scalable, investable, and inclusive solutions.

Across the continent, governments face a complex “energy trilemma”: access, security, and sustainability. More than 600 million Africans remain without electricity, and even where power is available, it is often unreliable and unaffordable. South Africa, despite its evolving market structure and infrastructure, continues to struggle with load shedding and constrained grid capacity, signs of a deeper structural imbalance that mirrors the continental challenge.

Energy transitions in Africa are not one-size-fits-all. South Africa’s path differs markedly from that of Nigeria or Kenya, for example, given their varied energy mix and socio-economic conditions. What remains true throughout is that the shift toward renewables cannot come at the expense of livelihoods; it must ensure re-skilling, local industry development, and equitable growth.

Private investors have shown a clear appetite to support Africa’s renewable growth, yet projects too often stall before reaching financial close. High perceived risks, non-cost-reflective tariffs, and grid bottlenecks deter investment and undermine long-term impact. While generation capacity has grown thanks to policies and programs like South Africa’s REIPPPP, transmission and distribution networks have lagged, becoming the continent’s true bottleneck.

Without transmission, there is no transition. Expanding and modernising grid infrastructure must now take priority, combining public and private finance to ensure resilient and interconnected systems. The experience of the Southern African Power Pool (SAPP) shows how regional cooperation can unlock value through shared infrastructure and cross-border trade, yet regulatory gaps and inconsistent pricing mechanisms still limit the full potential of integration.

A just transition must also be a skilled transition. South Africa’s coal-dependent communities require targeted re-skilling programs, technical training, and education pathways aligned with renewable energy careers. Across the continent, coordinated efforts between governments, multilateral agencies, and the private sector are needed to ensure that human capital grows alongside energy infrastructure.

At the same time, long-term progress demands patient capital. Energy projects often take decades to reach maturity. Mechanisms like blended finance, credit guarantees, and political risk insurance can de-risk investments and attract the sustainable funding Africa needs. Initiatives such as Mission 300, led by the African Development Bank and the World Bank, show the scale of ambition required, connecting 300 million people to electricity by 2030 through coordinated public-private partnerships.

South Africa’s G20 presidency is more than a diplomatic milestone; it’s a test of leadership. By championing a unified African voice and advancing tangible action on energy access, grid investment, and workforce development, South Africa can signal a new era for the continent’s energy transitions.

In this regard, RES4Africa Foundation has just published its position paper “Africa’s Just Energy Transitions: A Unified Agenda for Scalable, Inclusive, and Viable Solutions,” which proposes concrete actions to unlock Africa’s renewable potential. The paper outlines priority areas such as strengthening transmission and distribution networks, attracting patient and blended capital, enabling regulatory reform, and investing in human capital through re-skilling and capacity building. These interventions, taken together, represent a roadmap to ensure that Africa’s energy future is not only green, but also just, inclusive, and investable.

The position paper was officially launched during the RES4Africa South Africa Annual Conference 2025, held in Cape Town in partnership with Nedbank CIB, where policymakers, regulators, and private sector leaders discussed the country’s electricity market reform within the framework of its G20 presidency. The recording of the event is available here, and the paper can be accessed from today in RES4Africa’s online library.

Energy is far more than a utility; it is the engine of opportunity. When power flows reliably and sustainably, it fuels schools, industries, and entire communities. South Africa’s G20 presidency can mark the moment Africa turns energy access into economic empowerment and climate ambition into shared prosperity.

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