With its population projected to nearly double to about 2.5 billion by 2050, and a wealth of untapped natural resources, Africa holds immense promise for regenerative growth that benefits communities, economies and the environment.
Energy remains at the heart of Africa’s development journey, serving as the cornerstone for building economies and unlocking potential. Yet, delivering energy that is reliable, affordable and sustainable continues to pose a complex challenge. Across the continent, about 600 million people still lack access to reliable electricity. As African nations seek to grow their economies while meeting climate goals, the need for a just energy transition becomes critical, one that is fair, inclusive and responsive to Africa’s realities.
A just transition in Africa, according to Rentia van Tonder, Head of Renewable Energy, Power and Infrastructure at Standard Bank, must ensure that the shift to cleaner energy does not come at the expense of development. “We must decarbonise while expanding access, creating jobs and building resilient local economies. Africa has not yet fully industrialised, so our energy needs, and how we meet them, will differ from developed countries,” she says.
Addressing the Infrastructure Gap
One of the major barriers to energy access across Africa is the infrastructure deficit. Energy infrastructure projects are often complex and capital intensive, requiring collaboration between governments, financiers and private sector partners.
Through a $325 million syndicated financing package, in which Standard Bank played a leading and underwriting role, Genser Energy has built a 430-kilometre network of natural gas pipelines in Ghana’s western region. With its recent expansion to Kumasi, Ghana’s second largest city, the company hopes to unlock industrial growth, support economic expansion and strengthen the backbone of the country’s economy.
Baafour Asiamah-Adjei, CEO of Genser Energy, said the aim of the project was to provide a less carbon-intensive and more reliable energy source than the diesel and heavy fuel oils widely used in key sectors such as gold mining, manufacturing and logistics.
Although natural gas emits less carbon than other fossil fuels, such as coal or oil, it remains a contributor to emissions, particularly through methane leakage during production and transportation, and the release of carbon dioxide when burned.
Van Tonder says Standard Bank’s approach is pragmatic, balancing environmental goals with Africa’s development needs. “We follow a clear decarbonisation strategy. We still finance certain fossil fuel projects, but only where there is a credible plan to reduce emissions and where the project supports broader development goals, such as energy access or industrialisation,” she explains. “Our partnership with Genser, for instance, helps industries shift from diesel and liquified petroleum gas, which already represents progress toward cleaner energy.”
A Just Transition for All
Asiamah-Adjei insists that the just energy transition must be grounded in realism and protect Africa’s most vulnerable communities. He identifies three critical stakeholders in the transition process: communities, governments and the financial sector.
“The energy transition will change lives, but we must ensure it does not cause systemic harm,” he says. “Communities, in particular, are fragile. If the pace of transition is too fast and economic alternatives are not ready, entire regions could face decline. Schools, clinics, jobs, everything depends on energy stability.”
He adds that many African countries rely heavily on natural resource revenues. “You cannot simply turn off the taps without considering how national budgets will be funded,” he warns. “Financial institutions must also be part of the journey. Banks that invested in legacy infrastructure need viable pathways to participate in the new energy economy to avoid stranded assets. A just transition must ensure that all players can adapt.”
Building Partnerships for Progress
According to Asiamah-Adjei, the success of Genser Energy’s gas pipeline project is rooted in partnership. Standard Bank’s corporate and investment banking team combined global deal-making capability with a deep understanding of the local business environment.
“They brought financial expertise, but also cultural and commercial insight,” he says. “They understood local risks and had strong relationships with key players, which made the project possible.”
Van Tonder notes that the project aligns with Standard Bank’s long-term strategy on decarbonisation and sustainable impact. “This was not just another transaction,” she explains. “It reflects our broader mission to back projects that demonstrate Africa’s resilience and ambition.”
Investing in Skills and Sustainability
Beyond infrastructure, Genser Energy’s approach underscores the importance of people in Africa’s just transition. The company invests significantly in local capacity development, partnering with engineering universities and running graduate programmes through Sponsors for Educational Opportunity (SEO) Africa.
“We train future engineers two to three years ahead of each project launch,” says Asiamah-Adjei. “They gain hands-on field experience and develop both technical and community engagement skills.”
Standard Bank also integrates measurable social and environmental impact into its financing solutions. Progress on sustainability targets can be tracked and incentivised through these mechanisms.
As Africa’s energy needs continue to grow, Van Tonder and Asiamah-Adjei believe that the lessons from the Genser Energy-Standard Bank partnership can serve as a scalable blueprint: start small, grow steadily, invest in local talent and build partnerships that recognise Africa’s unique context. With the right infrastructure and collaborative mindset, Africa’s just energy transition is not only possible – it is already in motion.