South Africa's Energy Minister Tina Joemat-Pettersson invited global and African energy companies to invest in the country as well in the continent on Monday.
More than 645 million people, or almost two-third of the continent's population, lack access to reliable energy in Africa, Joemat-Pettersson said in her opening speech of the Africa Oil and Power Conference, where Anadolu Agency is the global communications partner.
'By 2040 Sub-Saharan Africa's energy demand is expected to increase four times compared to that of 2010,' Joemat-Pettersson said, adding that the Africa continent has abundant energy resources which have yet to be developed.
'Apart from the coal and oil we are able to turn to renewable sources including solar, hydro and wind. In recent years, there have also been developments with viable exploration of natural gas resources,' Jeomat-Pettersson said.
'We therefore have a great opportunity to address our energy needs and support economic growth,' she added.
'The country has proved reserves of oil and natural gas and uses its large coal deposits to meet most of its energy needs, particularly in the electricity sector,' according to the U.S. Energy Information Administration (EIA)
'South Africa's energy sector is critical to its economy, as the country relies heavily on its large-scale, energy-intensive coal mining industry,' the EIA said.
'By identifying the assistance and partnerships that will move us forward, we will be able to solve our energy, economic and development challenges,' Jeomat-Pettersson explained.
She underlined that the energy industry in South Africa offers a new and compelling investment opportunity.
'For the first time private equity has a real opportunity to participate in a sector of the economy that has traditionally been the domain of the public sector,' she said. “We will offer increasing future investments opportunity,' she added.
'We are also contemplating how private sector investment could be introduced to assist in resolving a growing transmission and distribution grid investment backlog,' she said.
By Huseyin Erdogan in Cape Town
Anadolu Agency
huseyin.erdogan@aa.com.tr