By Nkiruka Nonorom
Against the backdrop of the energy crisis arising from the ongoing war in the Middle East, energy sector experts have called for a shift towards joint renewable energy investments and cross-border infrastructure between South Africa and Nigeria to secure the continent's energy future.
Leading the call at the fourth South Africa Week, Theme: Restoring and Promoting Energy Investment between South Africa and Nigeria, in Lagos, South Africa's Deputy Minister of International Relations and Cooperation, Ms Thandi Moraka, described both countries as powerhouses on the African continent, each of which has immense potential to drive sustainable development, economic growth and regional integration through strategic energy cooperation.
He urged both countries to leverage their complimentary strengths, including Nigeria's solar capacity and oil reserves as well as South Africa's wind and solar potential, to build cross-border energy infrastructure, create a flexible continental energy market and export surplus energy.
“We all know that energy is the backbone of every development, we need to focus on reliable and affordable and most importantly sustainable energy access that can help us unlock opportunities across industries and also help in empowering communities and enhancing good quality of life for our citizens,” she said.
“The process of reallocating our energy investments requires a strategic shift, emphasized by issues of regional economic integration and innovation capabilities of our beautiful countries.
“We need Nigeria with its solar potential and South Africa with its wind and solar capabilities to work towards having abundant renewable sources that can be used to diversify energy resources,” he said.
Moraka called for energy diplomacy to be included in the African Union's agenda by using the African Continental Free Trade Area (AfCFTA) to harmonize rules, reduce trade barriers and establish regional trade corridors for equipment, technology and expertise.
He highlighted the Dangote Refinery Plc as evidence of Africa’s ability to boost energy security and cut import dependence and urged industry players to be innovative, scale up similar projects and utilize routes such as the Cape of Good Hope to supply the SADC region.
Acting Consul General of South Africa to Nigeria, Ms Kgothatso Zulu, described the roundtable as a platform to “exchange insights, strengthen networks and explore practical pathways to reestablishing and promoting energy investment, removing regulatory uncertainty and unlocking opportunities in the energy markets of both countries”.
He called for deeper continental cooperation in oil and gas, renewable energy and electricity, along with high-quality infrastructure development and skills transfer to promote regional development, and reaffirmed South Africa's commitment to placing Africa at the center of its foreign policy.
Chairperson of Petrolex, Mr. Segun Adebutu, said both countries are leading economies and key drivers of Africa’s energy and resource landscape, facing growing demand, changing regulations and pressure for reliable, sustainable energy.
From an industry perspective in the oil, gas and mining sector, he said the opportunity was significant, but unlocking it at scale required a deliberate focus on three crystal areas, including clarity and stability in the investment environment, enabling commercially viable partnerships and “sharp focus on execution”.
Arguing that there is no dearth of licenses or strategic intent, he said the real challenge is to efficiently move projects from concept to production, which demands coordination, discipline and delivery.
Eng. Managing Director of Nekonde Energy Limited, Chichi Emenike, said that although a symbiotic relationship already exists, there is a “compelling narrative” to signal the two countries as a force for Africa's energy and economic development.
Against the backdrop of the Middle East crisis and global energy disruptions, he said Africa is at the crossroads of both opportunities and vulnerabilities and rising costs are threatening macroeconomic stability.
Citing IMF projections, he said Africa's combined output will reach about $3.32 trillion in 2026, with South Africa the largest economy with $443.64 billion and Nigeria third with $334 billion.
However, he said both face energy shortages, policy uncertainty and low per capita energy consumption that are troubling investors.
Emenike outlined three reorientation imperatives, including accelerating the reduction of Africa's dependence on other countries due to the enormous risks it poses, preventing excessive dependence on foreign aid that threatens sovereignty, and achieving policy and regulatory alignment and avoiding policy flip-flops that scare away investors.
Highlighting the opportunities that exist for business partnerships between the two countries, the Director of Africa Bilateral Economic Relations, Department of Trade, Industry and Competition, South Africa, Mr. Kelvin Phum, said over 60 S'African companies have invested an estimated $7.80 billion in Nigeria, creating 11,537 jobs between 2003 and March 2026.
They stressed the need for both countries to enhance efforts to encourage and support value-added exports under AfCFTA and to maximize new market access under AfCFTA priority to promote trade.