Tunisian businesses are transitioning from HFO to gas (Image source: AfDB)

In the industrial zones of northwestern Tunisia, a quiet revolution is transforming how businesses operate and communities live

Where heavy fuel oil (HFO) once dominated the energy landscape, natural gas now flows through newly constructed pipelines, bringing cleaner air and economic opportunity to a region that has long waited for such progress.

The contrast is striking when you visit facilities like SICAM, an agri-food company specialising in canned tomatoes, which has switched its plant from HFO to natural gas.

“With gas, we have eliminated pollution, reduced production costs and increased our efficiency. We save up to 500,000 Tunisian dinars per season,” said Kamel Trabelsi, SICAM’s deputy director general.

This transformation was made possible by the Natural Gas Transport and Distribution Network Development Project in Western Tunisia, implemented by state power utility, Société Tunisienne de l'Électricité et du Gaz (STEG), with €49.39mn (US$56.5mn) in financing from the African Development Bank (AfDB).

The STEG project has expanded access to natural gas in historically underserved regions, including Béja Sud and Mjez Elbeb, connecting over 1,250 households to the network so far.

Eventually, the infrastructure will serve 13,500 subscribers across 19 municipalities in Tunisia's northwest, including 2,500 additional connections by the end of this year.

The roll out is already bringing material benefits to local industries, with SICAM connecting to the gas grid in October 2024.

"Thanks to natural gas, our boilers now reach 95% capacity in record time. Efficiency is up, maintenance is easier, and pollution has dropped significantly," added Trabelsi.

According to Mehdi Khoali, AfDB chief operations officer, “one of the project's most transformative outcomes is the gradual industrialisation of the serviced zones. Around 10 new industrial units — including brickyards and cement plants — have been established thanks to the gas supply. Others have expanded their operations. This is helping create jobs and strengthen regional economic resilience."

Mohamed Riadh Hellal, lead department head at STEG, and the project's coordinator, said the initiative “not only heats homes, but also boosts local economic activity.”

Read more:

Clarke Energy power plant underpins SA industrial output

Wartsila powers new 30MW Lagos gas plant

Global energy demand surged in 2024, says IEA

AMEA breaks ground on another African solar project 

SUN Mobility secures US$135mn to launch Africa’s largest EV battery swapping network with Helios, PIDG support

Helios Climate (HC), Africa’s premier climate-focused investment platform, in partnership with the Private Infrastructure Development Group (PIDG), has announced a landmark investment in SUN Mobility, a global leader in energy infrastructure and battery swapping solutions for electric vehicles

This investment round brings SUN Mobility’s total capital raised over the past year to approximately US$135mn. The substantial funding will support the launch of Africa’s largest battery swapping network and fuel the company’s continued domestic growth.

SUN Mobility, founded in 2017 by the SUN Group and the Maini Group, currently operates more than 900 battery swapping stations and powers a fleet of over 50,000 vehicles. The company’s globally interoperable, open-architecture battery technology, developed and manufactured in India, caters to two-wheelers, three-wheelers, four-wheelers, and heavy electric vehicles (HEVs), and is compatible with multiple global OEM partners.

Strategic investors in SUN Mobility include Indian Oil Corporation Limited (IOCL), Vitol (parent company of Vivo Energy, Africa’s largest fuel retailer), and Bosch.

Tavraj Banga, partner & co-head, Helios Climate, commented, “SUN Mobility is a global category leader with a differentiated and proven solution for the e-mobility space. Their platform’s interoperability spans multiple OEMs and vehicle types, allowing electrification at scale. Coupled with the economic and decarbonisation benefits, it is an ideal solution for emerging markets. We’re proud to support their entry into Africa and work alongside their key partners to deliver scalable, affordable, and climate-resilient mobility solutions on the continent. We look forward to working alongside the company and its shareholders, including Vitol, Indian Oil and Bosch, to realise this potential.”

Chetan Maini, co-founder & chairman, SUN Mobility, added, “We’ve built a modular, fast, and scalable battery swapping ecosystem that adapts to real-world mobility needs. With over 1.4 million monthly swaps in India and growing global interest, we’re excited to extend our proven model to emerging markets like Africa. The region’s rapid urbanization, reliance on two and three-wheelers, and need for robust HEV solutions position it perfectly to leapfrog into clean mobility.”

SUN Mobility’s innovative platform decouples battery ownership from the vehicle, lowering the upfront cost of electric vehicles and making them more affordable. Its solution addresses key challenges for fleet operators and governments aiming to cut emissions and reduce air pollution at scale.

Two- and three-wheelers currently account for nearly 5% of Africa’s CO₂ emissions, and with the market projected to exceed 1.9 million vehicles annually by 2030, the opportunity for scalable electrification is substantial.

With this investment, SUN Mobility will also support the development of the e-mobility supply chain across Africa and Southeast Asia, focusing on batteries and quick interchange stations. The initiative is expected to help reduce emissions and improve air quality through greater adoption of electric vehicles.

Absa’s Izaak Coetzee urges policy reform, infrastructure upgrades and finance to drive Africa’s energy transition.

Africa remains one of the least electrified regions in the world, despite possessing abundant renewable energy resources

In a recent commentary, Izaak Coetzee, head of strategic insights & analytics at Absa Group, highlighted the continent’s untapped energy potential and the urgent need for policy reform, infrastructure development and innovative financing to close the energy gap.

From a satellite view, Earth’s glowing urban centres reveal widespread access to electricity. However, Africa appears largely dark — a visual reminder that over half a billion people across the continent still live without power. Coetzee describes this as both a “human development crisis and a missed economic opportunity.”

Africa is rich in renewable resources, with the potential to generate 1.5 million terawatt hours (TWh) annually from solar power alone. Wind energy could contribute another 980,000 TWh, alongside 350 GW in hydropower and 15 GW in geothermal capacity. Yet, despite holding 60% of the world’s best solar resources, Africa accounts for just 1% of installed solar generation. Studies show that renewables could meet up to 80% of the continent’s energy needs by 2040, but the challenge lies in converting this potential into viable, scalable systems.

“Africa is not only key to its own energy transformation, it is central to the global clean energy transition,” Coetzee stated.

He pointed out that over US$20bn in annual investment is needed to meet Africa’s energy and climate targets by 2030. However, only 2% of global clean energy investment currently flows into the region. To change this, Africa must adopt transparent, investor-friendly regulatory frameworks that provide predictability and legal protections.

With South Africa poised to assume the G20 Presidency, Coetzee sees a unique opportunity to reposition Africa as a leader in renewable energy. He believes regional collaboration, smart policies and good governance are essential to unlocking the continent’s clean energy future.

Coetzee also emphasised the importance of first fixing the continent’s outdated energy infrastructure. Average grid losses are around 15%, and weak interconnectivity means even the best renewable projects fail to serve remote or rural communities.

He noted, “Without reliable transmission and distribution networks, capacity growth is meaningless.”

Africa’s regional power pools, such as the Southern, Eastern, Central and West African Power Pools, hold promise for building integrated electricity systems. However, Coetzee argued that investment must first target key infrastructure projects to modernise the grid and connect energy-rich areas with high-demand regions.

On financing, Coetzee called for innovative solutions tailored to Africa’s unique challenges. “To create a truly investable environment, African energy markets need more than ambition,” he said. “They require deep structuring expertise and innovative finance solutions.”

Absa has been at the forefront of sustainable financing, facilitating over R49.2 billion in green investments in 2024 alone. The bank played a major role in South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and supported Tanzania’s first municipal green bond through the Tanga UWASA initiative, which provided clean water access to over 6,000 households.

“These projects illustrate the power of partnership, technical depth and local insight to turn Africa’s potential into progress,” Coetzee remarked.

With Africa expected to account for more than 25% of the global population within the next 25 years, the urgency to electrify its future is more pressing than ever. As Coetzee concluded, “The tools exist. The capital exists. The renewable resources are abundant. What remains is the political will, policy coherence and financial innovation to translate ambition into action.”

AfDB backs Niger with US$144.27mn to reform energy laws, boost electricity access, and drive inclusive growth

The African Development Bank (AfDB) Group’s board of directors has approved a loan of US$144.27mn to support the first phase of Niger’s Energy Sector Governance and Competitiveness Support Program, a comprehensive initiative designed to reform energy sector laws and address the country’s critical electricity shortage

The program aims to tackle governance challenges by enhancing public financial management, with a strong focus on improving tax revenue mobilisation and control systems. It will also support the clearance of domestic arrears, facilitate public-private dialogue, and promote the adoption of an industrial and commercial policy to strengthen local businesses.

"This program represents our commitment to supporting Niger's economic recovery and energy independence," said African Development Bank director general for West Africa Lamin Barrow. "By improving access to energy and strengthening governance frameworks, we are helping to lay the foundations for sustainable growth that will benefit all Nigeriens, particularly the most vulnerable populations."

AfDB’s funding will support Niger’s energy targets, including raising electricity access from 22.5% to 30% by 2026, and boosting the manufacturing sector’s contribution to GDP from 2.5% to 3.8%. A key part of the program is focused on renewable energy, aiming to add 240 MW of solar capacity by 2030, with 50 MW set to come online before December 2026.

The initiative is rooted in social inclusion, with dedicated measures for internally displaced persons, women, and youth. Currently, over 507,000 Nigeriens have been displaced due to regional security concerns. The program includes targeted efforts to create improved economic opportunities for these vulnerable groups.

Despite facing challenges, Niger’s economy has shown resilience, posting a GDP growth rate of 8.8% in 2024. Oil production is also expected to rise significantly, from 20,000 to 90,000 barrels per day by 2026. However, electricity access remains low, only 22.5% of the population is connected to the grid, with rural access standing at just 4.5%, forcing the majority to rely on biomass for 94% of their energy needs.

The government’s strategic energy compact, already adopted by decree, sets the groundwork to attract US$527mn in private sector investment by 2030. The initiative will also establish high-level coordination mechanisms and update national energy policies to create a conducive environment for private investment in mini-grid solutions—crucial for extending electricity access in rural communities.

By leveraging its abundant renewable resources and enhancing governance, Niger is positioning itself for inclusive and sustainable development, with support from strategic partners like the African Development Bank.