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Powering Africa’s Future: AUC Champions Rural Electrification for Industrialization

Byadmin

May 14, 2025
Delegates attending the two day policy dialogue on rural energy

14 May 2025

By Baboloki Semele: In a decisive move to bridge Africa’s rural-urban energy divide and catalyze industrial growth, the African Union Commission (AUC), in collaboration with GET.transform which includes the Africa-EU Energy Partnership (AEEP), and the African Forum for Utility Regulators (AFUR), convened the “Regional Policy Dialogue on Rural Electrification for Industrialisation.” This pivotal gathering underscores the continent’s commitment to sustainable energy access as a cornerstone for economic transformation.

The objective of the two day Policy Dialogue (14-15 May 2025) held in Addis Ababa, Ethiopia is to provide a platform for stakeholders at continental, regional, and national levels to create synergies, harmonize efforts, and establish standards for the effective regulation of mini-grids for productive uses in rural areas. Specifically, the dialogue aims to:
Achieve consensus on best practices and effective business models for rural
electrification projects under the framework AREI.
Disseminate information and findings of the AfSEM document on “Policy and
Institutional Models for Mini and Micro Grids”.
Share experiences from successful projects that could be replicated in other
initiatives.
Advocate for the mobilisation of Green Financing for rural electrification projects
from international partners including the AU-EU Green Energy Initiative (AEGEI)
and the Global Gateway.

The expected outcomes from the Dialogue include among others;
Enhanced coordination and harmonization of efforts among stakeholders;
Enhanced understanding of domestic and international funds mobilization
strategies for projects preparation and implementation;
Improved understanding and challenges faced in the implementation of rural
electrification projects;
Proposed strategies for creating an enabling policy and financing environment for
the implementation rural electrification projects;
Launch of the “African Model Mini-Grid Regulations Toolkit”
Knowledge sharing and best practices empowerment of stakeholders

According to a concept note availed to this publication, with over 600 million Africans lacking electricity—predominantly in rural areas—the dialogue spotlighted the urgent need for decentralized energy solutions. Traditional biomass remains the primary energy source for many, leading to environmental degradation and health hazards. The continent’s electricity consumption is notably five times lower than the global average, hampering industrial and economic development.

When addressing delegates, Dr. Kamugisha Kazaura, Director for Infrastructure and Energy at the African union Commission, emphasized the transformative potential of mini- and micro-grids.

“Almost 90% of the 600 million people without access to electricity in Africa live in rural areas or far away from grid systems. Hence, decentralized energy solutions such as mini- and micro-grids will play crucial roles in accelerating access,” he stated.

He further highlighted the continent’s abundant renewable energy resources and the declining costs of energy systems as opportunities to advance these solutions. A significant milestone of the dialogue was the launch of the “African Model Mini-Grid Regulations Toolkit.” This comprehensive guide offers tailored regulatory frameworks to support the development and scalability of mini-grids across African nations. Dr. Kazaura noted, “We hope that it will support our Member States in fast-tracking mini-grids development in their respective countries.”

The dialogue also emphasized the integration of industrialization strategies with rural electrification efforts. By targeting energy interventions towards productive uses and local industries, the approach aims to unlock economic opportunities, promote local industrialization, and enhance the capacity of rural communities to afford modern energy services.

The AUC’s partnership with GET.transform and AFUR reflects a concerted effort to harmonize best practices, share experiences, and mobilize green financing for rural electrification projects. Dr. Kazaura expressed gratitude for these collaborations, stating, “I would like to use this opportunity to thank GET.transform, GET.Invest, the AEEP, and AFUR for their excellent partnership with the African Union Commission in key areas including regulatory frameworks, policies, and investments.”

As Africa strides towards achieving the goals outlined in Agenda 2063 and the Sustainable Development Goals (SDGs), initiatives like the Regional Policy Dialogue serve as critical platforms for stakeholders to align efforts, share knowledge, and drive actionable solutions. The collective vision is clear: to ensure that every African, regardless of location, has access to reliable, affordable, and sustainable energy, thereby unlocking the continent’s vast economic potential.

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