CNN
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Nearly 600 million people in sub-Saharan Africa live without electricity, creating a major barrier to development. It not only reduces industrial growth and agricultural efficiency, but also affects health and education. Students had little light to study, were unable to refrigerate vaccinations, and lack of access to clean cooking techniques led to severe home air pollution, leading to 700,000 premature births per year.
Energy investment in Africa has been declining in recent years, according to the International Energy Agency (IEA), but recent programs such as the World Bank and the Mission 300 launched by the African Development Bank aim to unlock investments over the next six years and power 300 million people.
CNN’s Eleni Giokos talks to IEA Executive Director Dr. Fatih Birol about the energy state in Africa and the challenges the continent needs to overcome.
This interview has been compiled for length and clarity.
ELENI GIOKOS: When around 600 million people on the continent talk about some kind of energy instability or lack of access to electricity, what does that mean in terms of the investment needed to fill that gap?
Fatih Birol: Africa is a contrasting continent when it comes to energy. Africa has many energy sources, including oil, gas, solar, wind, geothermal energy, and hydroelectric power generation. But at the same time, Africa is very poor when it comes to energy use. One second (person) in Africa has no access to electricity, and at the same time, four out of five families use open fire to prepare meals. The lack of energy hampers Africa’s development (it is probably the biggest problem when it comes to Africa’s economy.
What do I need? In Africa, these huge energy sources need to bring money to create projects and energy to people and the economy in order to meet investment. Therefore, this is an important issue in Africa today.
Let’s take a look at the African continent’s energy supply mix. According to IEA Statisticscoal accounts for 13%, oil 26%, gas 18%, and biofuel 40%. Renewable energy is only a small portion. Where is money intended to come from to truly utilize this wealth of resources?
Today, in Africa, the energy sector receives approximately $100 billion in investments. If you want to see Africa providing energy – clean energy – to its citizens, you should look at at least three times the investment, about $300 billion. This must come from the country itself, and Africa has a huge potential and it should not be difficult to attract foreign investments as it has the right investment policy. The problem is that foreign investors believe Africa is a dangerous investment environment. The government’s job is not to provide uncertainty to investors, but to minimize these risks, minimize bureaucracy, and increase transparency. Investors should know that if (they) invest in African energy, they will make a decent profit, and this is guaranteed. This is how governments need to prepare investment frameworks for investors.
Looking at the global carbon emissions from the continent related to energy emissions, Africa is Only 3% Although it looks global. The continent has great opportunities to industrialize first, but it can be done in a different way than the world. Which strategy do you think should be adopted?
Africa’s crimes about climate change can be largely ignored. Africa’s share (of global energy-related carbon dioxide emissions) is less than 3%, but the worst effects of climate change can be felt in Africa. Looking at the future of Africa’s energy, especially for electrification, we see that renewable energy plays a very important role: solar, wind, hydroelectric power, etc. But it requires not only the electrification you need for industrialization of the (continent), but also other energy sources. For example, I think Africa should use natural gas in a responsible way. It has huge natural gas resources. Africa, in some countries, must be used to use its solar, wind, hydropower, natural gas, perhaps nuclear (electricity) in all its energy sources. It is time for Africa to develop, and Africa needs a lot of energy. Africa needs to get this energy in a clean, safe and affordable way.
How will that change the game in terms of African countries working together, ambitions to create Africa’s continental free trade zone, the world’s largest trade bloc?
The idea is very good. Finding ways to promote trade between African countries can increase the cost-effectiveness of many projects and reduce tax issues. If it is implemented correctly, it can boost Africa’s investment needs.
Which countries do you want, where do you see great progress?
I don’t want to choose one country, but I think I’m increasingly aware that in Africa (overall) the government cannot make citizens happy or wealthy without fixing energy issues. Without energy, there is no stability. Without energy, there is no economic development. And Africa needs to solve this problem. Some governments have taken a very good step in sub-Saharan Africa, while unfortunately others have fallen behind.
