Not only does it stifle industrial growth and agricultural efficiency, but it also has implications on health and education: students often have little lighting by which to study, vaccinations cannot be refrigerated, and a lack of access to clean cooking technologies has led to severe household air pollution – causing 700,000 premature deaths a year.
As per the International Energy Agency (IEA), energy investment in Africa has decreased in recent years, although recent programs such as Mission 300, launched by the World Bank and African Development Bank, aim to unlock investment and provide power to 300 million people in the next six years. Thus, the state of energy in Africa is bleak and there are many challenges the continent needs to overcome in this regard.
According to Dr. Birol, “Africa is a continent of contrasts when it comes to energy. Africa has a lot of energy sources: oil, gas, solar, wind, geothermal energy, hydropower, all of them. But at the same time, Africa is very poor when it comes to use of energy. Every second (person) in Africa (has) no access to electricity, and at the same time, four out of five families use open fire to prepare their meals. Lack of energy hinders Africa’s development, (it is) maybe (the) number one problem when it comes to Africa’s economy.”
To address energy insufficiency in Africa, we need these huge energy sources to meet with investment, with money to make projects, to bring energy to the people and to the economy. Thus, this is the key issue today in Africa.
When we look at the energy supply mix right in the African continent, we get a clear picture of the situation. According to IEA statistics, coal accounts for 13%, oil 26%, gas 18%, biofuels 40%. Renewables are a small portion.Dr. Birol explains, “Today in Africa, the energy sector receives about $100 billion of investments. If we want to see an Africa which is providing energy – clean energy – to its citizens, we need to see at least three times higher, about $300 billion investment.” Further stating the source of this investment, he states, “This needs to come from the countries themselves, and Africa has such huge potential, that with right investment policies, it shouldn’t be difficult to attract foreign investments. The problem is foreign investors think Africa is a risky investment climate. The governments’ job is to minimize those risks, minimize the bureaucracy, increase transparency … rather than providing uncertainties for the investors. Investors should know that if (they) invest in African energy, they will get a decent return, and this is guaranteed. This is the way that governments need to prepare the investment framework for the investors.”
In terms of the overall global carbon emissions from the continent related to energy emissions, Africa accounts for only 3% of what we see globally. The continent has an amazing opportunity, firstly, to industrialize, but doing it in a different way to the rest of the world.Despite the fact that Africa’s energy-related carbon dioxide emissions are less than 3%, the worst effects of climate change are felt in Africa. Dr. Birol states, “When we look at the future of African energy, especially for electrification, I see that renewables will play a very important role: solar, wind, hydropower and others. But it is not only electrification you need for the industrialization of the (continent), you also need other energy sources.” He adds, “For example, I believe Africa should make use of natural gas in a responsible way – it has huge natural gas resources. Africa should use its solar, wind, hydropower, natural gas, maybe nuclear (power) in some countries, all its energy sources, to develop. It is Africa’s time to develop now, and Africa needs a lot of energy – and Africa needs to get this energy in a clean, secure and affordable way.”
The African Continental Free Trade Area is the ambition to create the largest trading block in the world. This large scale collaboration of African countries to foster trade among themselves, can increase the cost effectiveness of many projects and reduce the tax issues. In fact, it can provide a boost to the investment needs in Africa, if it is rightly implemented.
The African governments are eventually understanding the fact that without fixing the energy problem, they cannot make their citizens happy or wealthy. If there is no energy, there is no stability. If there is no energy, there is no economic development. Thus, Africa needs to unite to solve this problem. Some governments are undertaking very good steps in sub-Saharan Africa, but some others need to put in more efforts.
