- Electricity access in 24 African countries is below 50%.
- Africa needs a $40m annual investment to meet its energy needs.
- Natural gas is needed as a transitory fuel to facilitate clean energy deployment.
A recent report by the United Nations Economic Commission for Africa (UNECA) showed that about 600 million people in Africa lack electricity access while 900 million lack access to clean cooking fuel. The report titled “Energy Prices in Africa: Transition Towards Clean Energy for Africa’s Industrialization” also reported that electricity access rates in 24 countries are below 50 per cent. According to the report, electricity access in Liberia, Malawi, the Central African Republic, Burundi, and South Sudan have stagnated or fallen while Nigeria, the DRC and Ethiopia have the biggest electricity access deficits.
UNECA Executive Secretary Vera Songwe stated that adequate investments in energy to ensure affordable access for all is vital for the continent to build. She added that nations need to endure that the pricing in the electricity sector is cost-reflective. The report also notes that despite the abundant renewable and non-renewable resources, the continent relies mainly on fossil fuels and biomass rather than a diversified energy mix.
The report notes that annual investments of $40 billion are required to meet Africa’s energy needs. Countries also have to provide an enabling environment for private sector investments in the electricity sector, apply cost-reflective tariffs while paying attention to efficient electricity generation to lower the costs and provide incentives and mechanisms to increase the share of renewable energy in the power systems.
The report also discusses the role of natural gas as a transitionary energy source to replace more polluting coal and facilitate the clean energy transition.