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The next frontier for African energy companies is capital, communities and cross-border growth

FUMANI MTHEMBI

Long-term energy sovereignty across the continent depends on the emergence of strong, locally owned energy companies, enterprises capable of building, owning and operating infrastructure while delivering measurable developmental outcomes

FUMANI MTHEMBI Long-term energy sovereignty across the continent depends on the emergence of strong, locally owned energy companies, enterprises capable of building, owning and operating infrastructure while delivering measurable developmental outcomes

20th February 2026

     

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Africa’s energy deficit is often framed, in terms of scale, by how many megawatts are required, how quickly they can be delivered and how efficiently capital can be mobilised. While these questions remain critical, they are no longer sufficient. As African energy companies mature, the next frontier is not only cross-border growth, but how that growth is pursued, with whom, under what governance frameworks and to whose long-term benefit, says renewable-energy company Pele Energy Group director of sustainability and cofounder Fumani Mthembi.

“For developers operating on the continent, expansion beyond national borders requires a shift in mindset. It demands moving beyond a narrow infrastructure-delivery model towards one that integrates power generation with development, capability building and energy sovereignty.”

There is a material difference between being a national independent power producer (IPP) with regional ambitions and being an African energy and development company, says Mthembi.

She advances that Pele Energy Group is, and will always remain, a proudly South African company, shaped by a renewable- energy policy environment that enabled a model deliberately linking power generation with structured community development. This experience reinforced a critical insight: infrastructure viability is shaped as much by social and institutional conditions as by engineering and finance.

“South Africa’s renewables sector relied on foreign capital, technical expertise and track record in its early stages. Equally important, however, was the role played by local firms with deep contextual knowledge and a long-term commitment to national development. As African energy companies look beyond their home markets, this balance offers a clear lesson, which is that success depends on respecting and empowering local actors, not displacing them.”

Responsible expansion, therefore, requires partnerships that transfer skills, share know-how and create meaningful space for local organisations to build their own track records. It also means leveraging experience responsibly, whether through access to capital, procurement efficiencies or operational expertise, while ensuring these advantages strengthen, rather than undermine, local capability.

Mthembi emphasises that electricity underpins economic growth, industrialisation and social wellbeing. It is, therefore, inseparable from national security. Countries must be able to generate and distribute power reliably, without excessive dependence on entities whose interests are misaligned with long-term development objectives. While contractual frameworks are essential to protect all parties, ownership remains a central consideration. Locally embedded ownership fosters accountability, strengthens relationships with governments and communities, and aligns infrastructure development with national priorities.

“Power assets should not exist as isolated financial instruments. They must be embedded within national development strategies, contribute to institutional strengthening and support broader socioeconomic outcomes. Loyal local actors are better positioned to sustain this alignment over time,” she highlights.

Cross-border expansion also requires humility, adds Mthembi. Entering new African markets means acknowledging that past success does not automatically translate into future relevance. In practice, this humility is expressed through partnership structures that allow local actors to hold meaningful and often majority, ownership, alongside extensive stakeholder engagement to understand regulatory, cultural and developmental contexts.

“Every market has skills, institutional knowledge, informal economies and entrepreneurial capacity. Effective energy development depends on identifying and leveraging these assets, rather than imposing externally designed solutions. Humility, in this sense, is not restraint, it is strategic intelligence.

“Long-term energy sovereignty across the continent depends on the emergence of strong, locally owned energy companies, enterprises capable of building, owning and operating infrastructure while delivering measurable developmental outcomes.”

Pele Energy Group’s model demonstrates the potential of this approach, states Mthembi. Beyond power generation, the company invests in human capital, social infrastructure and local economic development, particularly in underserved rural and peri-urban communities. It is an employment-creating organisation that contributes to national objectives, from skills development to economic inclusion.

She says that scaling this impact across Africa is not about replication, but catalysis. The objective is to support the emergence of African energy champions, companies that are commercially credible, socially grounded and institutionally durable.

“Operating across multiple jurisdictions introduces regulatory and cultural complexity. Strong governance is, therefore, non- negotiable. Respecting local norms does not require compromising ethical principles. Companies expanding across the continent must align with globally recognised compliance frameworks and seek to exceed minimum standards by continuously improving how commercial, social and environmental value is delivered. Good governance is not merely risk management, it is the foundation of trust and long-term partnership.”

Infrastructure alone does not deliver prosperity. Human and institutional capacity determine whether power systems can be sustained, expanded and adapted. Developing people alongside megawatts is essential, stresses Mthembi.

If Africa achieves genuine energy sovereignty in the coming decades, it will be because capital was deployed responsibly, partnerships were built with humility and infrastructure was designed to serve long-term development. The role of African energy companies in that story will be defined not by dominance, but by trust, as credible, ethical partners committed to shared progress across the continent, she concludes.

Edited by Creamer Media Reporter

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