By Enyichukwu Enemanna
Electricity has been identified as one of the critical components to drive Industrialisation anywhere in the world, including the African continent. Where access to energy is in short supply, no effort towards industrialisation would be successful.
The recent revelation by World Bank Group that Africa still houses a whopping 600 million persons that have no access to any form of electricity supply is startling, shocking and highlights a huge existing deficit yearning for attention, even as the quest to bridge infrastructural gap on the continent continues.
The focus was ‘Energising Africa’ at the recently concluded Spring Meetings of the World Bank and the International Monetary Fund (IMF) in Washington DC, USA. According to the President of World Bank, Ajay Banga “Over 600 million people in Africa have no access to any form of power. For me that is absolutely an unacceptable situation.”
He just re-echoed what the International Energy Agency said in 2021 when it highlighted that out of the 600 million Africans, representing 43% of the entire continent without any access to energy, 590 are found in the sub-Saharan Africa.
From Nigeria to Ghana, Ethiopia, South Africa and indeed most countries on the continent, power supply has consistently remained epileptic and their economies must cope with the rolling power blackouts of eight to ten hours daily. In some cases, cities and towns go for days without a ray of light, leaving them with the option of expending huge chunk of their resources to power their generators, just to remain in business amidst high cost of petrol and diesel.
In Zimbabwe, Heritage Times gathered that many residents work at night because that is the only time power supply could be available, just like in Nigeria where frequent collapse of national grid has frustrated Industrialisation efforts.
At the ‘Energising Africa’ conference, the African Development Bank (AfDB) President, Dr. Akinwunmi Adesina had unequivocally stated that industrialisation cannot take place in an atmosphere of darkness and that the continent of Africa is where the battle for global energy will be won and lost.
Aging infrastructure, lack of government oversight and a shortage of skills to maintain the national grids among others have been attributed to why erratic power supply has remained perennial across Africa. Most African countries still rely on highly polluting coal-fired power generation as against the environmentally friendly renewable energy.
According to experts, as a result of its dependence on coal, accounting for 80% of the country’s total energy source, South Africa is among the top 20 highest emitters of planet-warming greenhouse gases in the world and accounts for nearly a third of all of Africa’s emissions.
In Nigeria, Heritage Times gathered that power generation capacity has for years remained just at 4,000 megawatts amidst burgeoning population, currently standing at about 220 million. Several billions of Naira investments in the sector in the past have been consumed by endemic corruption and mismanagement. Experts have said that the most populous African country would require at least 30,000 megawatts of electricity, with special focus on rural communities to get away from the current crippling energy poverty.
According to World Bank Group, an estimated $20bn investment is required annually to achieve universal electrification across sub-Saharan Africa. Out of this figure, it says at least $10bn should be invested annually to bring power and keep it on in West and Central Africa.
Economic Competitiveness Without Energy Impossible — AfDB President
At the Washington DC Spring Meetings, the AfDB President said electricity supply remains the most important factor in the quest to industrialise the continent of Africa. He noted that no economy can be competitive without energy. The AfDB chief expressed dissatisfaction that the abnormality of lack of power in Africa had been taken by some people as normal, assuring that every resource must be deployed to change the narrative.
He said, “When Ajay (World Bank President) came to see me in Abidjan, Cote’d Ivore, we agreed on two things: First, let us solve Africa’s problem of energy; and second, let Africa feed herself.
“We spent a lot of money trying to create jobs. You can’t create jobs without energy. Energy is like blood in the body of businesses. Economies thrive on energy.
“The amount of economic growth tourism have depends on the amount of energy you have to power the economy.”
The President of World Bank Group, Ajay Banga also corroborated Adesina’s position when he described power as means through which people can have access to good health, access to manufacturing, access to agriculture and improve the quality of life.
“Without power, people won’t have good health, good education, manufacturing. Power is the means of eliminating poverty, ensure productivity and grow the economy.
“I grew up in India and I saw the impact that access or lack of access to power can have on the people. I saw in my own childhood how access to power can increase the quality of life of the people and all I can say is that we should look at it as a very important human right which helps people to harness their potentials.
“I believe that the future of Africa depends on five areas: the first is electricity generation, through upstream and the downstream sub-sectors of the industry, second is housing and third is tourism and tourism jobs, and the final one of course is healthcare.
“The point is access to affordable energy is critical to improving the lives of the people. With energy everything is possible.”
Power To 300 Million Africans By 2030
In order to further reduce the number of Africans without access to electricity supply, AfDB and World Bank have fostered partnership, stemming from an ambitious effort to provide at least 300 million people in Africa with electricity access by the year 2030.
Under this partnership, World Bank Group will work to connect 250 million people to electricity through distribution of renewable energy systems and the distribution grid, while the African Development Bank Group will support an additional 50 million people.
“Access to electricity is a fundamental human right and is foundational to any successful development effort. Currently, 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and ultimately job creation,” World Bank Group noted.
The multinational lender further emphasizes, “This partnership is a demonstration of the determination of the World Bank Group and the African Development Bank Group to be bolder, bigger, and better in tackling one of the most pressing challenges in Africa. The initiative is the most recent manifestation of the World Bank Group’s commitment to become more impact-oriented and is the byproduct of a concerted workplan to build a better bank. It is aided by a constellation of regional energy programs that will now be aligned toward this common goal.
“For the World Bank Group to connect 250 million people, $30 billion of public sector investment will be needed, of which IDA, the World Bank’s concessional arm for low-income countries, will be critical. In addition, governments will need to put in place policies to attract private investment, and reform their utilities so they are financially sound and efficient with tariff mechanisms that protect the poor.
“Connecting 250 million people to electricity would open private sector investment opportunities in distributed renewable energy alone worth $9 billion. Beyond that, there would be substantial opportunities for private investments in grid-connected renewable energy needed to power economies for growth.”
A Path To Poverty Alleviation — Economist
Meanwhile, an Economist, Chinedu Ikeokwu has lauded the two banks for their synergy in advancing access to power in Africa, a move he said will bring development to the grassroot. Ikeokwu told Heritage Times HT that with a reliable and affordable power supply, industrial and commercial activities will receive a new boost and provide access to economic activities to teeming youths on the continent without means of livelihood.
He noted that agriculture and mining, where Africa has comparative advantage will receive a new boost with more investment in power. “Don’t forget that commercial agriculture is gradually nosediving and this is directly as a result of lack of storage facility. We import a lot of food products including the ones we can manufacture here, so you can see we have a lot to gain with this effort to boost power supply in Africa.
“More young people will be engaged to pursue a decent means of livelihood. Even in mining sector where processing has remained a challenge, with adequate power supply, processing companies can be established and this will end the era of exporting mineral resources in raw forms along with all its values out of the continent,” he said.
He therefore called on the African Union to roll out policies that will enhance ease of doing business on the continent so that more foreign investors will take advantage of the World Bank Group and AfDB’s new investment drive in Africa’s energy sector to invest their resources.
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