- March 6, 2023
- Posted by: AITRC 2
- Categories: News, Blog, Report
WEEKLY TRADE POLL FOR AFRICAN COUNTRIES
MARCH 2023
Access to reliable and affordable energy is critical to economic growth and development in any society. Unfortunately, Africa has been plagued by an energy crisis that has hindered its ability to maximize its enormous resources. The continent is home to more than a billion people, yet about 672 million are projected to remain without access in 2030, 85% of whom will be in Africa. On the other hand, many developing countries in Asia are well on track to achieve near-universal access by 2030[1]. Energy is frequently either too expensive, too unreliable, or simply not accessible in many African nations.[2] The energy deficit is particularly acute in rural areas, where as many as 90% of the population is without access to electricity[3].
The causes of Africa’s energy crisis are multifaceted. One of the main factors is the lack of investment in the energy sector. Many African countries lack the financial resources to invest in the development of their energy infrastructure, while many foreign investors are hesitant to invest in African energy projects due to perceived political instability and regulatory uncertainty. Most of the existing energy infrastructure in Africa was built decades ago and is in need of modernization and expansion to meet the growing demand for energy. Corruption and poor governance system have also played a major role in the energy crisis, as funds that should be invested in the energy sector are often misappropriated or misused.
The effects of Africa’s energy crisis are far-reaching and severe. The lack of access to electricity has a significant impact on economic development. The reality is that without reliable energy, businesses/ industries cannot operate at full capacity, and entrepreneurs cannot innovate and create new products and services. The energy crisis also impacts health outcomes, as many healthcare facilities lack access to reliable electricity, making it difficult to provide adequate medical care.
As the continent transition to a more digital future, the need for more affordable and accessible energy across the continent has sparked a number of research projects whose objective is to increase the amount of energy storage currently available and bring energy storage products to market at a more competitive price.[4] Africa’s population is projected to grow from 1.4 billion in 2022 to 2.1 billion in 2040, making up nearly one in every two additional people added to the world’s population. This will represent nearly one-quarter of all people on Earth. The continent’s population would surpass that of China and India put together.[5]
WEEKLY AFRICA TRADE POLL (FIRST WEEK MARCH, 2023)
Consequent to this backdrop, Africa International Trade and Commerce Research (AITCR) conducted a weekly poll for African countries to ascertain public perception and collect feedback on the best strategy to address Africa’s energy crisis. Findings from the polls reveal that 34 percent of the respondents opined that “research and education” is the best strategy to address Africa’s energy crisis, 44 percent affirmed that “regulation and management” is the best strategy to address Africa’s energy crisis, 7 percent posit that “spending on energy” is the best strategy to address Africa’s energy crisis, while 5 percent indicated “none”. Therefore, judging by the outcome of the poll, proper regulation and management can solve Africa’s lingering energy crisis. The survey also gave a thumb to research and education.
The survey’s findings reveal that energy management and regulation is the most appropriate measure to address Africa’s energy crisis. In order to achieve sustainability, African countries must have an effective and efficient energy system. The entire system must be managed efficiently, including generation, transmission, distribution, and environmental concerns, including the following strategies:
1. Expanding access to renewable energy sources: Africa is blessed with abundant renewable energy resources such as solar, wind, and hydropower. Therefore, promoting and investing in renewable energy sources such as solar and wind energy can help provide affordable and reliable electricity to millions of people in Africa.
2. Improving energy efficiency: Africa can also reduce its energy consumption by implementing energy efficiency measures such as using energy-efficient appliances, adopting efficient lighting systems, and improving building designs.
3. Investing in energy infrastructure: The development of energy infrastructure, such as power transmission lines, storage facilities, and smart grids, is crucial for ensuring reliable and sustainable energy supply to African communities.
4. Encouraging private sector investment: Private sector investment in the energy sector can help drive innovation, improve efficiency, and create jobs, which can stimulate economic growth in Africa.
5. Develop mini-grids and off-grid solutions: These decentralized energy systems can provide reliable electricity to rural areas that are not connected to the national grid. The development of mini-grids and off-grid solutions can also provide opportunities for local entrepreneurs and promote economic development in rural areas.
6. Supporting policies and regulations promoting sustainable energy: Governments can create policies and regulations that incentivize developing and adopting sustainable energy sources while encouraging energy efficiency and conservation measures.
7. Encouraging cross-border regional cooperation: African countries can work together to address energy challenges through regional cooperation. This could involve sharing of energy resources, cross-border power interconnections, and joint development of renewable energy projects. Regional cooperation can also help overcome the barriers of small, isolated markets and promote economies of scale, leading to more efficient and cost-effective energy systems across the continent. Policymakers can facilitate such cooperation by creating an enabling environment that supports regional energy integration, such as harmonizing regulatory frameworks, promoting cross-border investments, and establishing regional energy institutions to oversee regional energy projects’ planning, coordination, and implementation.
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[1] Access to electricity, https://www.iea.org/reports/sdg7-data-and-projections/access-to-electricity
[2] Global Energy poverty: why we are still failing Africa | World Economic Forum (weforum.org)
[3] Report: Universal Access to Sustainable Energy Will Remain Elusive Without Addressing Inequalities, https://www.worldbank.org/en/news/press-release/2021/06/07/report-universal-access-to-sustainable-energy-will-remain-elusive-without-addressing-inequalities
[4] Solving Africa’s Energy Crisis One Battery at a Time – Electrical and Computer Engineering – College of Engineering – Carnegie Mellon University (cmu.edu)
[5] Africa’s energy crisis raises fresh health, environmental concerns | The Guardian Nigeria News – Nigeria and World News — Nigeria — The Guardian Nigeria News – Nigeria and World News
