- January 23, 2023
- Posted by: AITRC 2
- Category: Blog
WEEKLY TRADE POLL FOR AFRICAN COUNTRIES
Africa Energy Transition
The energy economy in Africa is evolving. The implication of the evolving energy economy is the transformation and opportunity it presents for employment, knowledge transfer and long-term inclusive economic growth. Africa is blessed with abundant natural resources, including a wide variety of renewable energy resources such as solar, wind, hydro, and geothermal power. As the world transitions towards cleaner energy sources, African countries have a unique opportunity to harness their natural energy resources to support economic growth while simultaneously addressing the challenge of climate change.
Many African countries are already taking steps to transition to clean energy. For example, in 2019, Morocco inaugurated the world’s largest concentrated solar power plant, while Kenya has made significant investments in geothermal power. These investments can help to diversify the energy supply, reduce dependence on fossil fuels, and provide energy access to those who lack it. Overall, the energy transition has the potential to create more than 9 million jobs between 2019 and 2030 and an additional 3 million jobs by 2050[1]. The energy transition will substantially boost employment in the renewable energy sector in Africa, up from around 0.35 million in 2020 to over 4 million by 2030 and over 8 million by 2050 under 1.5-S[2]. Many of the renewable energy jobs in 1.5-S are in solar, bioenergy, wind and hydropower.
Moreover, while clean energy can provide significant economic and environmental benefits, it is not without challenges. The transition to clean energy requires significant upfront investments, and the financing and development of clean energy projects can be complex. African countries may also face regulatory and institutional barriers that must be overcome.
Exploiting the continent’s large endowment of renewable energy resources, such as biomass, wind, solar, and hydropower potential, is key to Africa’s energy revolution. Additionally, the transition to clean energy can also help to address other issues, such as energy poverty, which affects millions of people across the continent. By expanding access to clean and affordable energy, African countries can improve the quality of life for their citizens, boost economic activity, and support sustainable development.
It is about bringing adaptable technologies to scale in order to fulfil the energy needs of a growing population of 1.2 billion people, only 30% of whom have access to reliable electricity[3]. It also entails a shift away from an inefficient and harmful type of energy by many people and toward the use of modern fuels and energy sources for cooking, heating, and lighting[4]. Three African countries stand out for their economic growth progress and significant achievements in renewable energy. These are Egypt, Morocco, and South Africa, which are today the most active renewable energy markets in Africa.[5]
WEEKLY TRADE POLLS (THIRD WEEK JANUARY, 2023)
Consequently, Africa International Trade and Commerce Research (AITCR) conducted a weekly trade poll for African countries to gauge public opinion and elicit responses on the transition to clean energy by African countries as a means of harnessing its fast natural energy resources. Findings from the poll reveal that 47 percent of the respondents agreed that Africa energy transition is a means of harnessing its fast natural energy resources “to a large extent”, 27 percent affirmed it “to an extent”, 20 percent indicated it “to a little extent” while 6 percent indicated “none”. Thus, implying that a larger percentage opined that Africa’s energy transition is a means of harnessing its fast natural energy resources.
The results of this poll highlight the significance of the energy transition in Africa and the benefits surrounding it. While the transition to clean energy is a means of harnessing Africa’s natural energy resources, it also requires significant investments in infrastructure, policies, and regulations to create a sustainable and reliable energy system. By overcoming these challenges and seizing the opportunities presented by renewable energy, African countries can support economic growth, create jobs, and address the pressing challenge of climate change. The current energy transition is primarily motivated by environmental sustainability concerns, but it will only be successful if it simultaneously promotes economic growth and development and energy security and access.[6] Africa is a large continent, and many of its countries are at varying stages of economic and energy access growth; as the world transitions towards a low-carbon economy, African countries can position themselves as leaders in producing and exporting clean energy technologies. This can create new export opportunities and provide a source of foreign exchange earnings, supporting economic growth and development.
The Paris Climate Agreement and the Sustainable Development Goals (SDG), one of which is access to clean and affordable energy, are dominant factors in the region. The government of African countries have to incentivise private sector investment in the energy transition agenda through policy reforms. The development of clean energy can also provide opportunities for innovation, research, and development in the energy sector, creating new industries and job opportunities. This can help to diversify African economies and reduce reliance on traditional sectors such as agriculture and mining. At the same time, Non- Governmental Organisations (NGOs), should continue the advocacy of drawing attention to the challenges and opportunities in the emerging industry. However, transitioning to clean energy is not just about harnessing natural resources; it also involves investing in the infrastructure, policies, and regulatory frameworks needed to support a more sustainable energy system. This may include improving energy efficiency, modernising the power grid, and promoting the adoption of electric vehicles.
Finally, the transition to clean energy presents a significant opportunity for African countries to leverage their abundant natural resources to drive economic growth, improve energy access, and address the pressing challenge of climate change. However, this transition requires significant investments in infrastructure, policies, and regulations, as well as collaboration with the private sector and international partners, to ensure a sustainable and reliable energy system.
[1] Could the Energy Transition Benefit Africa’s Economies? https://www.irena.org/News/expertinsights/2022/Nov/Could-the-Energy-Transition-Benefit-Africas-Economies#:~:text=The%20energy%20transition%20has%20the%20potential%20to%20boost%20employment%20in,by%202050%20under%201.5-S.
[2] ibid
[3] ibid
[4] Africa’s energy transition: opportunities and challenges for decent work | Energy Transition
[5] Energy Transition in Africa to 2100 | Energy Council
[6] A beginner’s guide to the energy transition in five steps | World Economic Forum (weforum.org)
