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Private Sector Optimistic About Market Liberalization in Africa
Africa’s private sector is increasingly optimistic about the role of market liberalization in expanding energy access as electricity demand is set to triple by 2040.
Speaking during the Africa’s Energy Future: Market Liberalization and Private Sector Leadership panel at African Energy Week (AEW): Invest in African Energies 2025, Iyunola Adekanye, Partner at law firm Dentons ACAS-Law and member of the Energy and Project Finance practice group, highlighted Nigeria’s Electricity Act as a transformative step.
“It devolves the power, devolves the regulatory and operation of electricity to the state government. This is particularly attractive to investors because it’s easier to manage,” Adekanye stated.
Meanwhile, Mashale Phumaphi, CEO of independent renewable energy developer Etavi Renewables underscored the progress achieved through programs such as South Africa’s Renewable Energy Independent Power Producer Procurement Program and the Southern African Power Pool.
“The private sector can now participate in generation and trading of electricity. Regionally, we are moving in the right direction,” Phumaphi noted, while stressing that unlocking investment will depend on governments facilitating private sector involvement in transmission and distribution.
From a financing perspective, Reta Jo Lewis, former Chair and CEO of financial institution the U.S. Export-Import Bank, said investor confidence depends on ensuring bankable projects.
“If the private sector is the project sponsor, we look at who they are bringing with them. We need to consider if the project is going to be seen to completion,” Jo Lewis stated.
With regulatory reform advancing and public-private partnerships gaining traction, speakers agreed that liberalization offers a pathway to attract investment, enhance competition and expand energy access across Africa.