The dismal power situation in Africa was a point of discussion at the 47th World Economic Forum in Davos, Switzerland. According to a panel of discussants, more than 600 million people in Africa lack access to clean, affordable, and reliable energy. Closing the energy gap on the African continent will result in 30% higher economic growth by 2040.
The future of energy across the African continent depends on increased private investment in power generation. “In the past, we’ve relied on governments to power our countries; we now need to bring in the private sector to help empower our economies and people,” says Cyril Ramaphosa, Deputy President of South Africa.
“We’re tired of seeing Africa in the dark,” says Akinwumi Ayodeji Adesina, President of the African Development Bank (AfDB). The AfDB is helping address structural problems involving the lack of base-load power by investing $12 billion on the power sector over five years. In particular, the last mile is a key focus in terms of energy distribution. We need to learn from what’s working and scale it up, he added.
Indeed, elections in Africa will increasingly hinge on energy reforms. The message to African leaders: if you want to stay in power, deliver power.
“The good news is that it is technologically feasible to provide affordable, reliable, clean power to people who haven’t had access to power before,” says Rachel Kyte, Special Representative of the Secretary-General and Chief Executive Officer, United Nations – Sustainable Energy for All. Africa is the crucible of innovation in providing off-grid solutions, she added.
Alhaji Aliko Dangote, President and Chief Executive, Dangote Group commented on the problems of financing. He said, ”issues such as high interest rates and unstable currencies make it difficult for private-sector funding to flow,”
