Switching to renewable energy from conventional power sources could attract a wave of new sustainable energy investment to Africa, growing the region by 6.4 percent by 2050, a new report by the International Renewable Energy (IRENA) in collaboration with African Development Bank (AFDB).
According to the report, the energy transition in Africa also has the potential to generate 26 million jobs by 2050, far outstripping the projected loss of jobs owing to the ailing fossil fuel industry which currently employs approximately 2 million people in Africa.
However, despite the continent’s overwhelming potential for renewable energy generation, its potentials remain untapped.
This has affected its ability to attract investment as only 2 percent of the $2.8 trillion of global green energy investment went into Africa between 2000 and 2020.
Africa’s population is expected to almost double from today’s 1.4 billion people to 2.5 billion by 2050 which signals a huge need to bring modern energy and jobs to millions.
“While the rate of access to energy in Sub-Saharan Africa rose from 33 percent to 46 percent over the last decade, rapid population growth meant 570 million people still lacked electricity access in 2019 – 20 million more than 10 years ago. About 160 million more people lacked access to clean cooking over the same period,” says the report.
African countries also have some of the World’s highest unemployment rates with South Africa and Namibia ranked the highest with 34.4 percent and 33.4 respectively while Nigeria ranks third-highest with the unemployment rate at 33.3 percent.
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“Africa’s governments and people are too often asked to rely on unsustainable fossil fuels to power their development when renewable energy and energy efficiency solutions offer economically attractive and socially beneficial alternatives,” stated Francesco La Camera, Director General for IRENA said.
“The transition offers a unique opportunity for Africa to meet its development imperatives. Through tailored policy packages, African countries can harness their strengths and resources to overcome long-established structural dependencies,” he said.
Accounting for approximately 70 percent of Africa’s total electricity generation, fossil fuels have dominated the continent’s energy sector for decades, owing to established processes and fossil fuel development-related infrastructure.
Thus, as energy transition finance becomes more readily available, the continent is poised to benefit from its abundant natural resources, with coordinated efforts being made to prioritize renewable energy development while phasing out harmful fossil fuels, such as coal.
“Africa is endowed with abundant renewable energy sources, upon which it can sustainably base its ambitious socio-economic development. However, this requires strong political commitment, a just and equitable energy transition framework, and massive investments,” said Kevin Kariuki, Vice President for Power, Energy, Climate & Green Growth for the African Development Bank.
“Enabling African countries, which have contributed little to historic greenhouse gas emissions, to develop, while recognizing the need to address the climate emergency is imperative,” La Camera remarked, adding that, “International Cooperation, including South-South cooperation, will be key to mobilizing resources and know-how at the scale and speed proportionate to the needs to Africa’s economic, its communities, and its people.”
The report recommends Africa’s energy transition opportunities, affirms the importance of policies to facilitate the shift to a renewables-based energy system, industrial guidelines and other measures to strengthen its industrial base and diversify its economies.
