Since the 1960s to date, several African countries have made relatively significant inroads towards enabling access to energy for household and industrial consumption except for a few still lagging behind. Moreover, the advent of the Corona Virus Disease pandemic in 2019 (COVID 19) severely disrupted supply chains in Africa with a negative incidence on the energy sector and GDP growth within the span of two years (March 2020- December

2021) with timid recovery prospects in 2022. For instance, access to electricity in sub-Saharan Africa decreased in 2021. Some 597 million people did not have electricity connections in the region that year, while in 2020 electrical energy was inaccessible to 581 million Africans. This means that around five out of every 10 individuals below the Sahara lived in the dark. In rural areas, the situation was even worse: over 70 percent of the population lacked access to electricity.

Among Africa’s regions, Central and West Africa registered the most dramatic scenario, with electrification covering less than half of the population. Despite the threats posed by COVID19 within the energy supply chain, there are likely prospects to pull in additional domestic private sector investments and also Foreign Direct Investments (FDIs) into Africa for the next decade and beyond. Harnessing private equity, commercial loans and the use of specific Private Sector Instruments like Blended Financing (BF) could fast track energy production to enhance productive capacity and drive industrialization in Africa. Reforming energy policy in Africa to leverage additional private capital in the energy sector could likely be the game changer strategy for the next three decades in order to attain the performance markers articulated within the African Union Agenda 2063 and United Nations Agenda 2030.

To date, the private sector investors are rapidly driving innovations and economic growth in key tech sector with reliable cutting energy technologies within the renewable energy value chain. According to Forbes in 2021, the world’s top 10 billionaires have a combined net worth of 1,370 trillion United States Dollars far greater than the combined GDPs of 17 African countries. The GDPs of the 17 African countries including Kenya, Ghana, Ethiopia and 14 other countries stood at 1.071 trillion US dollars in 2021 according to Statista. Worthy to underscore is the fact that Africa is the most solar illuminated continent with immense potential to harness solar energy for enhanced productive capacity and industrial transformation. It will require consolidated energy policy reforms in order to harness Africa’s solar energy potential towards universal access in energy in Africa. In addition, the African Union member states should further liberalize the energy sector with sound financing and fiscal policy drivers to pull in additional private sector investors into the energy and agribusiness sectors. For instance the Blended Financing model which is currently transforming the Private Independent Power Producers (PIPPs) into power entrepreneurs is a best practice to replicate across Africa upon creating

specific Private Sector Instruments (PSIs) for the financing of energy projects.

Thus far, several countries in Africa have made substantial progress in developing big solar farms with capability to generate tens of hundreds of megawatts of energy to transform the agribusiness value chain and rural economy in general. For instance, African countries like Morocco, Kenya, Egypt and Nigeria have invested significant amount of funds in developing their renewable energy sector. With recent innovations in solar battery energy technologies, Africa could develop solar energy hubs and associated battery technologies in countries like Democratic Republic of Congo and Cameroon with huge mineral deposits as an alternative towards importing technology in the long-run.

To achieve universal access to energy, innovative mechanisms are needed to mobilize the necessary capital. Private equity can play an important role in catalyzing the green sector. Increasingly, venture capital funds are being used to spur entrepreneurship in the renewable energy sector. In order to catalyze this sector, policies, regulatory and institutional frameworks are required. Policies to promote renewable energy markets, in particular, measures for local content requirements that specify minimum sourcing and/or environmental requirements of a product or service, which can play an important role in

stimulating job creation and supporting industrialization (in particular infant industries) are also essential. Major constraints to wider adoption and scaling up of use of renewable energy (RE) in Africa are as follows:

(a) lack of awareness about renewable energy;

(b) high initial upfront costs in setting- up renewable energy systems;

(c) inadequate local research and development capabilities and end-user acceptability; (d) a dearth of demonstration projects to foster wide-spread interest among the private sector;

(e) inadequate assistance from the financial

institutions; and

(f) gaps in the policy and regulatory framework.

Relatedly, Africa to date has the biggest cultivable land of approximately 60 percent of Global arable land but still spends tens of millions of United States Dollars in the importation of rice and other cereals from abroad with an unfavorable trade balance. Rolling back this trend will require that African Union countries foster trans-border agribusiness trade as an alternative to importing foodstuffs from abroad. Failure to develop an adequate and reliable energy value chain in Africa will further stifle the goal of fast tracking African Continental Free Trade Area Agreement (AfCFTA). Furthermore, building inclusive marketplaces for Small and Medium Sized Enterprises (SMEs) and for rural economic actors within the agribusiness domain will require a blending of strategy that takes into consideration the energy, financing and technical capacity needs of these actors. Fueling intra African trade through a three pronged approach requires that we develop comprehensive strategy that seeks to provide affordable energy, adequate

export credits and capacity building towards SMEs and rural farmers within the agribusiness domain in Africa.

In a nutshell, building affordable energy grid networks and modern agriculture across borders in Africa will require that African Union member states develop a common energy and agribusiness policy that brings on board private sector actors as key partners in championing and strengthening productive capacity and industrialization drive in Africa. It’s in this spirit that The AU through the department of Economic Development, Trade, Tourism, Industry and Mining intends to create a platform and bring together both Public and Private Sector actors to devise new innovative approaches that harness the potential of Private sector practitioners to mobilize critical resources required to invest in Smart & Sustainable Energy and agribusiness through new technologies and a blend of alternative financial resources with the ultimate goal of up scaling productive capacities and industrialization drive in Africa.

This initiative goes in line with AU Executive Council Abuja Decision Number EX/CL/Dec.183 (VI), which institutionalized the African Union Private Sector Forum as a key instrument of dialogue and partnership between the African Union policy makers and the private sector actors. The Forum also acts as a vehicle for empowering the African Private Sector through advocacy, sharing business and market information and skills.

In this connection, the African Union commission in collaboration with Africa Business Council plans to organize the 13th African Private Sector Forum from 23-25 July 2022 in Lusaka Zambia, under the Theme: “The Role of Private Sector towards Increasing Investment in Energy and Agribusiness to Upscale Productive Capacities and Industrialization Drive in Africa”.

Day one:

Session One: Enabling universal access to energy through policy reforms in Africa as a prerequisite to accelerate investments in agribusiness and enhanced industrialization.

Session Two: Creating Innovative Private Sector Instruments (PSIs) to fast track investments in the energy and agribusiness sectors: show-casing the use of Blended Financing (BF) with private actors within the energy sector in Africa.

Session Three: Fostering private sector champions to develop innovative and affordable renewable energy solutions in Africa: show-casing best practices in developing mega solar energy farms in Africa to accelerate agribusiness and industrialization.

Day Two:

Session Four: Replicating best practices in the use of Private Independent Power Producers (PIPPs) in Africa to fast track energy production in rural agribusiness and enhanced industrialization.

Session Five: Building trans-border energy corridors in Africa to step up productive capacity and industrialization in Africa.

Session Six: Boosting intra African trade by strengthening agribusiness productivity through a three pronged approach: Enabling access to energy, capacity building and access to export credits for agri-business actors in Africa.

Session Seven: The need for Entrepreneurship policy reform: undertaking deliberate National Start up Legislation and administrative policies reform to Stimulate Innovation and Entrepreneurship in Africa.

Day three:

Session Eight: Challenges faced by actors in the energy and agribusiness sectors in Africa.

Session Nine: Pitching session for the Youth Entrepreneurs (Innovative Industrial Solutions for renewable energy and/or Agribusiness).

Session Ten: Market driven solutions to fast track access to energy towards accelerating intra African trade within the agribusiness sector. Recommendations and the way forward.

To create a platform for a candid discussion on how energy and Agribusiness development policies in Africa can be reformed to leverage additional private capital, skills and technology to enhance productive capacity and ensure sustainable industrialization uptake in Africa.

•  Strengthen the technical capacity of stakeholders through vibrant and open exchange of views, ideas and market information and opportunities during the three days’ African Union Private Sector Forum
• Create an inclusive African Union Innovative Private Sector Financing Instruments to accelerate energy production as articulated by AU Agenda 2063.
• To further discussions on ways to make it easier for the African Private Sector to access relevant financial services to invest in sustainable energy and agribusiness
• Encourage and boost agricultural production and productivity levels through the scaling up of agro-technologies, investing in access to affordable energy, quality seeds and fertilizers, markets through value chain improvements.
• To mobilize for critical resources required to invest in Smart & Sustainable Energy: Smart oil and gas infrastructure
• Call up Public policy makers to undertake deliberate National Start up Legislation and administrative policies reform to Stimulate Innovation and Entrepreneurship in Africa

The 13^th African Private Sector Forum purposes to, as outcomes of the three-day event have;

• Means to ensure equitable access to energy between urban and rural populations devised;
• Mechanisms to ensure SMEs’ fair access to energy value chains explored;
• Ensure accountability principles and information transparency disclosure measures for private actors in the energy sector to participate;
• Environmental and social impact mitigating measures in the energy sector are implemented with adequate transparency mechanisms;
• Ensure Public-Private sector commitment to boost agricultural production and productivity levels through the scaling up of agrotechnologies, investing in access to affordable quality seeds and fertilizers, markets through value chain improvements, and promoting agricultural research and development; and
• Critical resources required to invest in Smart & Sustainable Energy: Smart oil and gas infrastructure will be mobilized.
• Public policy makers encouraged to undertake deliberate National Start up Legislation and administrative policies reform to Stimulate Innovation and Entrepreneurship in Africa.

Around 200 participants will be invited to attend. The participants shall be drawn from the Public and Private sector spheres, such as Public Policy Makers, Champions of Development and Commercial Financial Institutions, Women and Youth led/ owned SMEs, Women and Youth Associations, E-Commerce and digital trade experts, Officials/Experts from within and outside Africa will be invited to participant at the Forum to share their experiences.