Energy in Africa

Energy in Africa describes energy production, con-

sumption and import in Africa.
Energy use and development varies widely across the con-
tinent, with some African countries exporting energy to
neighbors or the global market while others lack even ba-
sic infrastructures, or systems to acquire energy by.[1] The
World Bank has declared 32 of the 48 nations on the con-
tinent to be in an energy crisis.[1] Energy development has
not kept pace with rising demand in developing regions,
placing a large strain on the continents existing resources
over the rst decade of the new century.[2] From 2001 to
2005, GDP for over half of the countries in Sub Saha-
ran Africa rose by over 4.5% annually, while generation
capacity grew at a rate of 1.2% [2]

1 Overview
This map shows a snapshot of fossil fuel resources and renewable
1.1 Statistics energy projects across Africa

1.2 Social, Economic, and Demographic

Diversity those, 75% come from the richest two quintiles in over-
all income.[9] Less than 2% of the rural populations of
According to the World Development Report published Malawi, Ethiopia, Niger, and Chad have access to elec-
by the World Bank in 2012, Africas economy is about the trical power.[8] Electrical provisioning in Africa has gen-
size of the Netherlands economy, which is equivalent to erally only reached wealthy, urban middle class, and com-
only approximately six percent of the U.S. economy.[4] mercial sectors, bypassing the regions large rural popula-
Akin Iwayemi, a professor at University of Ibadan in tions and urban poor.[8] According to the forum of Energy
Nigeria, suggests that there is potentially a strong feed- Ministers of Africa, most agriculture still relies primarily
back relationship between the energy sector and the na- on humans and animals for energy input.[10] The electrical
tional economy.[5] Determining socio-economic indica- industry in Africa faces the economic paradox that rais-
tors in Africa include population, population density, land ing prices will prohibit access to their services, but that
area, proportion of citizens living in an urban setting, andthey cannot aord to roll out additional infrastructure to
Gross Domestic Product (GNP) per capita.[5] drive prices down and increase access without additional
Overall, the African continent is a net energy exporter. In capital.[8]
2009 the net energy export was 40% of the energy pro- Overall rates of access to energy in Africa have held
duction 13,177 TWh.[6] The world share of energy pro- constant since the 1980s, while the rest of the develop-
duction in Africa was 12% of oil and 7% of gas in 2009.[7] ing world has seen electrical grid distribution increase by
20%.[9] Sub-Saharan Africa is the only region in the world
where per-capita access rates are falling.[11] According to
1.3 Current Energy Usage in Africa
recent trends, over 60% of Sub-Saharan Africans will still
[8]
Energy in Africa is a scarcer commodity than in the de- lack access to electricity by 2020.
veloped world annual consumption is 518 KWh in Sub- Moreover, Africa has an average electrication rate of
Saharan Africa, the same amount of electricity used by 24%, while the rate in the rest of the developing world
an individual in an Organization for Economic Cooper- lies closer to 40%.[8] Even in the areas covered by the
ation and Development (OECD example is the U.S.) electrical grid, power is often unreliable: the manufac-
country in 25 days.[8] Across the continent only 10% turing sector loses power on average 56 days out of the
of individuals have access to the electrical grid, and of year.[9] In Senegal power is out 25 days a year, in Tanza-

1
2 1 OVERVIEW

nia 63 days, and in Burundi 144 days.[8] Frequent power cultural waste alone could meet the present electrical
outages cause damage to sales, equipment, and discour- needs of 16 south eastern countries with bagasse-based
age international investment.[11] According to the peri- cogeneration.[17] The sugar industry in Mauritius already
odical African Business, Poor transport links and irreg- provides 25% of the countrys energy from byproduct
ular power supplies have stunted the growth of domestic cogeneration, with the potential for up to 13 times that
companies and discouraged foreign rms from setting up amount with a widespread rollout cogeneration technol-
manufacturing plants in the continent. [8] ogy and process optimization.[16]
Despite its unreliability, electrical service in Sub-Saharan According to Stephen Karekezi, Director of African En-
Africa also costs more than in other parts of the world. ergy Policy Research Network and co-worker Waeni
The protective tari required in Sub-Saharan Africa is Kithyoma, Africa is third largest in crude oil reserves (be-
$0.13 USD, compared to $0.04-$0.08 USD in the rest of hind the Middle East and Latin America), third largest in
the developing world. Additionally, one of the greatest natural gas resources (behind the Middle East and Eu-
challenges in an eort to create sustainable development rope), second greatest for uranium (behind Australia),
in Africa is that many countries with exportable resources and is plentiful in hydro energy potentials and other re-
are land-locked without a system of transportation.[5] newable energy, such as bio-energy and solar energy.[18]
Although Africa lacks a sucient transport system, new Professor Iwayemi states that there are conventional en-
developments in industry and manufacturing have re- ergy sources in Africa: hydroelectric and wood fuels, coal
sulted in tremendous population growth, increased ur- lignite, crude oil, natural gas and nuclear fuels, and there
banization, high energy consumption, over-cultivation of are unconventional energy sources, such as solar, geother-
lands, and signicant industrial advancements engen- mal, biomass, oil and tar sands, wind energy and tidal en-
dered by globalization.[12] Professor Iwayemi of Univer- ergy from the inuence of the sea.[5]
sity of Ibadan in Nigeria states that the fundamental en- In addition, South Africa alone obtains the sixth largest
ergy question facing Africa [is]providing and main- coal reserves on the planet, after China, the US, India,
taining widespread access of the population to reliable Russia and Australia.[19] Specic renewable resources in
and aordable supplies of environmentally cleaner en- South Africa include solar, wind, hydropower, wave en-
ergy to meet the requirements of rapid economic growth ergy, and bio-energy.[15][20]
and improved living standards.[5] In correspondence
to The Africa Society, the population growth of sub-
Saharan Africa is 2.2% annually; therefore, by 2025, 1.5 Human Capabilities of Energy in
it is estimated that Africa will consist of over a billion Africa
people.[12] If this mathematical model is correct environ-
mental problems could double or even triple by 2025.[12]Professor Iwayemi suggests that commercial energy use
[5]
Perhaps a confounding variable of these trends is that remains a key factor in human development. Commer-
less than 1% of the electricity generated in the Africa cial energy can include solar powered systems and the
originates from renewable resources, as the White Pa- like.
per on Energy Policy proclaims.[13] The main objec- In addition, The Africa Society admits that much of
tives of the paper were to increase access to aord- Africas apparent facilitation of poverty is the result of
able energy services, improve energy governance, stim- degradation of agriculture and arable lands, as well as,
ulate economic growth, manage energy-related environ- the mismanagement of water resources.[12] A large con-
mental impacts, and ensure security of supply through tributing factor to these events and others, such as famine,
diversication.[14][15] is deforestation.[12] Clean energy potentiality in Africa
could therefore reduce environmental degradation, and
consequently, poverty.[12]
1.4 Africas Environmental Potential To provide an example, implementation of biodiesel
technology has potential for the creation of jobs, as well
The African continent features many sustainable en- as consequent economic development in disadvantaged
ergy resources, of which only a small percentage have rural communities.[21] This form of clean energy also en-
been harnessed. 5-7% of the continents hydroelec- ables energy security for many nations throughout the
tric potential has been tapped, and only 0.6% of its globe including those in Africa, and reduces greenhouse
geothermal.[16] The publication Energy Economics esti- gas emissions rather signicantly.[21]
mates that replacing South African coal power with hy-
droelectric imported from the Democratic Republic of
the Congo could save 40 million tons of carbon diox- 1.5.1 The Capabilities Approach
ide emissions annually.[17] 2011 estimates place African
geothermal capacity at 14,000 MW, of which only 60 Sen, an Indian economist, has assimilated a concept re-
MW has been tapped.[17] The African Energy Policy ferred to as The Capabilities Approach, in which he
Research Network calculates that biomass from agri- suggests that poverty can be sensibly identied in terms
2.3 East Africa 3

of capability deprivation.[22] Further, he states that rel- 2.3 East Africa

ative deprivation in terms of incomes can yield absolute
deprivation in terms of capabilities.[22] He believes that The Africa Society portrays that promotion of sustain-
the freedom to achieve well-being is of great importance, able use of natural resources is occurring in Kenya and in
and can lead to increased capabilities.[22] Energy could Uganda; Kenya and Uganda are improving community-
facilitate a great deal of freedom, for individuals could based wildlife management, strengthening forestry and
gain access to a wide variety of resources.[22] environmental management, and enhancing integrated
coastal zone management[this] reduces conicts be-
tween communities and protected areas by promoting ac-
1.6 Challenges Facing Energy in Africa cess rights, revenue sharing, etc.[12] Kenya also orga-
nized an instrumental energy plan to support development
The high upfront capital cost of many resources, particu- and economic growth.[23]
larly renewable resources, is one of the most critical bar- In Tanzania, the goal is to conserve biodiversity.[12]
riers to the development of an energy market.[21] Other The USAID supports local actions in the Pangani, Bag-
challenges include the lack of food security and limited amoyo, and Mkuranga districts that promote sustain-
water resources, for these factors are necessary for life able coastal and marine resources management through
and therefore take priority over energy initiation.[21] co-management for near-shore shery areas, small-scale
enterprise development, marine culture, and coastal
tourism.[12] There is also an essential push for geother-
2 Energy Utilization and Availabil- mal power in East Africa, given the arid climate.[23]
ity Norway also supports the replacement of kerosene lamps
with alternatives facilitated from solar power in Kenya,
access to energy in Ethiopias rural areas for job growth
2.1 North Africa and a better standard of living, and Liberias implemen-
tation of a climate plan.[23]
North Africa is dominant in oil and in gas, for Libya
obtains approximately 50% of the oil reserves avail-
able in Africa.[5] Libya designated USD $5 billion to as-
sert programs and regulations that will reduce carbon 2.4 West Africa
emissions.[23] Resources, such as oil and gas, are also
prevalent in Algeria, in addition to natural gas.[5] Accord- Electricity access in Ghana increased 500% between
ing to the Renewable Energy Sector in N. Africa, solar 1991 and 2000, but per capita consumption actually fell
capacity is also extremely relevant in North Africa.[24] over the same period, suggesting electricity usage was un-
aordable. Ghana was also one of the primary countries
to develop an energy action plan, in response to the ini-
2.2 Southern Africa tiative for Sustainable Energy for All.[23]
Nigeria is currently a dumping ground for electronic
Southern Africa has 91 percent of all of Africas coal products, which leach toxic metals and substances such as
reserves and 70% of the nuclear/uranium resources lead, mercury, cadmium, arsenic, antimony, and trioxide
in Africa, according to Professor Iwayemi.[5] South- into water sources.[12] When burned, carcinogenic diox-
ern Africa follows Central Africa closely in hydro re- ins and polyaromatic hydrocarbons are emitted and toxic
sources; hydroelectric potential can particularly be found chemicals like barium are transmitted into the soil.[12]
in the Congo DRC, Mozambique, Zambia, Cameroon, The 1989 Basel Convention established an international
Ethiopia, Sudan, and Nigeria.[5] Mozambique in partic- treaty designed to regulate hazardous waste from being
ular has joined an international initiative to develop an dumped into the developing world.[12]
energy action plan, to contribute to Sustainable Energy In reection of statements made in Prof. Iwayemis
for All.[23] essay, West Africa does have some coal reserves
In accordance with The Africa Society, USAIDs Living approximately 10 percent of coal in Africa, particu-
in the Finite Environment program has helped form 15 larly Nigeria.[5] West Africa also exhibits some nuclear
protected areas in Southern Africa, encompassing nearly resources.[5] In addition to coal reserves, Nigeria contains
40,000 community members, known as conservancies in natural gas and oil resources.[5]
Namibia.[12] In Guinea, West Africa, the US is making signi-
The country of South Africa alone obtains the sixth cant input in the area of environmental protection.[12]
largest coal reserves on the planet, after China, the US, These progressive steps will improve agricultural produc-
India, Russia and Australia.[18] Specic renewable re- tion technologies and exchange trade opportunities.[12]
sources in South Africa include solar, wind, hydropower, In Guinea 115,000 hectares of forests and tree plan-
wave energy, and bio-energy.[19][14] tations have been placed under sustainable manage-
4 4 POLICY

mentUSAID has assisted more than 37,000 farmers to in Africa that lead to inequality, such as ones location of
improve agricultural production through sustainable man- residence (urban vs. rural), ones access to food, water,
agement practices, and has helped establish over 2,800 and energy, and ones freedom to achieve well-being.[22]
new businesses.[12] The Human Development Report of 2013 suggests that
the regions with the largest gender inequality index val-
ues are West and Central Africa; Liberia has the high-
2.5 Central Africa est at an index of 143, followed by Central African Re-
public (142), Mauritania (139), Cte d'Ivoire (138), and
Central Africa has abundant hydro-electric resources due Cameroon (137).[26]
to the multiple rivers that run through this region.[5] The
publication Energy Economics estimates that replacing
South African coal power with hydroelectric imported 3.3 Education
from the Democratic Republic of the Congo could save
40 million tons of carbon dioxide emissions annually.[17] Energy can facilitate the development of schools, and
By utilization of USD $32 million, the energy from these help teachers gain access to a wide variety of[27] teach-
abundant hydro resources has been converted to low volt- ing mechanisms, such as potentially computers. En-
age power lines in the Congo, and has helped 140,000 ergy can [28] contribute to the allowance for freedom of
people achieve availability to sustainable electricity.[23] education.

However, a strong focus of energy in Central Africa is

protecting forest resources.[12] USAID will contribute
approximately $48 million to partnership through its suc- 4 Policy
cessful Central African Regional Program for the En-
vironment (CARPE)goal is to improve forest gover- 4.1 Attracting investment
nance, develop sustainable means of livelihood for 60
million people who live in the Basin, reduce the rate of As a whole, Foreign Direct Investment into Africa has
forest degradation and loss of biodiversity through pro- been low. According to the Forum of Energy Ministers
tected area management, improve logging policies, and of Africa, Africa as a whole receives less than 2% of for-
achieve sustainable forest use by local inhabitants.[12] eign direct investment across the world.[29] A survey of 20
Poverty Reduction Strategy Papers prepared by countries
across Africa found that most neglect to consider energy
3 Human Factors and Energy or individual energy access as an integral part of their de-
velopment strategy.[29] Trans-national initiatives play an
important role in development for the entire region too.
3.1 Poverty and Health One example of international cooperation for energy de-
velopment is the Chad-Cameroon pipeline.[11]
The utilization of solar water heaters and biodiesel re-
sources in South Africa within recent years reveals that Additionally, The United States announced USD $2 bil-
renewable energy can signicantly diminish poverty, for lion in grants, loans and loan guarantees across U.S. gov-
the implementation of clean energy systems has led ernment agencies and departments for capacity-building
to improvement in health, and general welfare of the projects, policy and regulatory development, public-
people.[21] The assimilation of these programs also gen- private partnerships, and loan guarantees to leverage pri-
erates employment, and develops empowerment of the vate investment in clean energy technologies.[23]
people due to a localized level of energy operation.[21] Eskom and Duke Energy currently support an initiative to
Since the turn of the century, the Shri Kshetra Dhar- facilitate an electrical roadmap in Southern Africa. The
masthala Rural Development Project (SKDRDP) has ex- goal is to connect 500 million people to modern energy
[23]
tended micro-credits for renewable energy projects for a service by 2025 (Holliday 2012).
total of $3.2 million to poor farmers in the South Indian
state of Karnataka. The credits paid for the installation
of almost 20,000 biogas plants, solar home systems, im- 4.2 Privatization
proved cooking stoves and family-size pico-hydropower
plants (Bosshard 2012).[25] 4.2.1 Pros

Economic reasoning predicts increased eciency and

3.2 Inequality lower government overhead from a private contractor.
Privatized Northern Electricity in Namibia implemented
A major concern in Southern Africa is addressing the in- improved billing and reduced losses to lower the required
equalities associated with the aftermath of the apartheid energy tari and lower energy prices. Private compa-
era.[14] There are also several other factors or occurrences nies can also work closely with government to provide
 5

the social benets of a state utility in the short term and the African Petroleum Industry Association (Visagie
the competition of a private market for the long term. 2006).[21] Plans for the promotion of harvest to create
South Africa commercialized the formerly public utility bioethanol are underway, the South African Bureau of
Eskom, but worked with them to continue grid expansion. Standards is developing pricing models to enable eco-
The South African government helps fund new connec- nomic growth. ref name=Visagie />
tions and subsidizes the rst 100kWh per month for poor The World Bank and the International Finance Cor-
households, up from a previous 50kWh per month. By poration will expand existing programs such as Light-
2005 South Africas electrication rate had increased to ing Africa, which develops o-grid lighting markets,
about 70% (from 30% in 1990).[9]
to provide aordable lighting to 70 million low-income
households by 2020, as well as undertake new initia-
4.2.2 Cons tives with the Energy Sector Management Assistance
Program, such as mapping of renewable energy re-
[23]
Privatization can lead to price increases if the market is sources(Holliday 2012).
not otherwise protable. An unregulated or lightly reg- The Global Ministerial Environment Forum in Nairobi,
ulated market could tend towards proven protable cus- Kenya was broadcast throughout Africa, and comprised
tomers too, ignoring riskier opportunities to expand ser- a panel of energy experts who discussed the successes
vice to rural or poor customers. Extending the electrical achieved in energy in Africa so far, lessons learned from
grid becomes dicult because of the high upfront invest- implementations, and future projections for energy.[23]
ments required to serve a low population density. Ac-
Moreover, the United Nations Development Program
cording to the Forum of Energy Ministers of Africa, most
and UN Capital Development Fund recently initiated a
rural customers can't even aord the install costs of the
global Clean Start program, which will enable millions
most basic single phase circuit with an electrical socket.
of impoverished people both in Africa and in Asia to
Energy subsidies are one possible solution, but they can
shift out of energy poverty by creating micronance op-
disproportionately eect demographics who already have
portunities to encourage poorer individuals to purchase
access to electricity, missing the most poor.[9][29]
and utilize electricity.[23] Twenty-ve countries in Africa
have joined this global task: Botswana, Burundi, Burk-
ina Faso, Cape Verde, Cte d'Ivoire, Democratic Repub-
4.3 Program Management Reform
lic of Congo, Ethiopia, Gambia, Ghana, Guinea, Kenya,
Lesotho, Liberia, Malawi, Mozambique, Namibia, Nige-
Most development initiatives work at the individual
ria, So Tom and Principe, Senegal, Sierra Leone, Tan-
project level, leading to fragmentation and inconsistency
zania, Togo, Uganda, Zambia, and Zimbabwe.[23]
between projects that discourage long term investors. In-
stitutional reform is vital to improving the operating ef-
ciency of the electrical sector as a whole. The cur-
rent hybrid public/private model lacks a clear leading or-
ganization with one clear vision of the systems future. 5 Future development
Attempts to negotiate management contracts over utility
hardware have generally failed, leaving the public utility
still burdened with day-to-day hardware support as well 5.1 A Sample of Current Investments
as growth, planning, and development. Of 17 high prole
African energy management contracts, 4 were cancelled The World Bank operates a portfolio of 48 Sub-Saharan
before they even reached full term, 5 were not renewed Africa energy projects with over $3 Billion USD in in-
after only one cycle, and 5 more were dropped in later vestment. Individual governments as well as private en-
years. Only 3 remain in place today.[2] tities also contribute to overall energy projects. China
and India have recently emerged as large players in the
Smart utility management must meet increased invest- space, committing $2 Billion USD annually to new devel-
ment in the middle to smartly allocate resources and de- opment projects. China focused specically on 10 large
velop a sustainable grid model. Of the current utilities, hydropower projects, which combined are expected to
On average, Africas state-owned power utilities embody produce another 6,000 MW of electrical energy. This
only 40% of good governance practices for such enter- is estimated to increase the hydroelectric capabilities of
prise (Vagliasindi and Nellis 2009).[2] Sub-Saharan Africa by 30%. Another project currently
Nevertheless, federal support for energy is gaining mo- undergoing feasibility exploration would install hydro-
mentum, especially in Southern Africa. South Africas electric facilities on the Zambezi river, potentially gen-
government has established a Joint Implementation Com- erating 2,000-2,500 MW. Smaller scale projects also re-
mittee to progress the biodiesel industry.[21] This commit- ceive funding, such as eorts to distribute safe cookstoves
tee encompasses a variety of sub-committees, like South and ecient kilns to lower the eects of biomass, initia-
Renewable Energy Technologies for Poverty Alleviation tives to improve lighting eciency, or smaller scale mi-
South Africa: Solar Water Heaters and Biodiesel, and crogrid electrical distributions.[1][2][30]
6 6 AID AND WORLD ENERGY SUPPLY CAPABILITIES
5.2 Regional pools
One characterizing feature of the electrical grid in Africa
is its isolation.[31] The formation of regional energy trad-
ing pools would help stabilize energy markets, but would
require building out a transmission line infrastructure be-
tween countries.[1] Installing those resources would be
expected to require ~$19 Billion USD in investment.[32]
Regional energy trade would save an estimated $5 Bil-
lion USD annually in emergency generation costs, yield-
ing a 22% rate of return even at 5% deation.[32] En-
ergy economist Orvika Rosnes estimates that fair regional
pooling in the least developed countries could actually
generate money in less than 1 year, with a 168% annual
return on investment.[32]
5.3 Projected needs
Creating an eective and far reaching modern electrical
system in Africa will take signicant investment. The
African Development Bank has estimated that a univer-
sal access system for all 53 countries in Africa would cost
$547 Billion USD total to implement by 2030, which av-
erages to $27 Billion USD per year.[31] Total investment
has not come close to this mark, instead hovering until
recently between $12 Billion USD annually.[1] Recent
participation from China and India on the order of $2 Bil-
lion USD annually brings the investment total up to ~$4
Billion USD.[2] The power sector still faces a nance gap
on the order of $23 Billion USD per year though, severely
constraining its development options.[2] Operating at 1/4
of the necessary budget to grow and expand, current net-
works must mark most funds for maintenance of aging
existing systems.[2]
6 Aid and World Energy Supply
Capabilities
6.1 Relationship to the Millennium Devel-
opment Goals
Access to modern forms of Energy can impact socio-
economic parameters like income, education, and life
expectancy.[29] Energy can act as a multiplier of the
Millennium Development Goals through its ability to
stimulate economic growth to generate employment, im-
prove educational opportunities, and improve general
health compared to existing energy sources.[29] Research
of past successful development suggests that energy, es-
pecially from transportation and industry, helped drive
growth and modernization[8] 6.2
Eradicate extreme poverty and hunger: Access
to contemporary energy can help generate jobs, in-
dustrial activities, transportation, and modernized
agriculture in Africa. Most African staple foods
need processing, which can be aided and made more
ecient by modern energy. Access to liqueed
propane gas stoves in Senegal led to major domestic
time savings and improved nutrition.[33]
Achieve universal primary education: Energy ac-
cess improves the capabilities of schools and low-
ers the sustenance chore burden on children (female
children in particular), allowing them more time to
pursue education. Energy can also improve the qual-
ity of schools and build connections to surrounding
communities.[9]
Promote gender equality and empower women:
Household activities traditionally done by women
could be made more ecient, leaving time for other
means of self-development or productive economic
input.
Reduce child mortality: Modern energy can allow
reliable access to better sources of water and low-
ers the indoor air pollution from existing biomaterial
burning cooking stoves.
Improved maternal health: Energy development
lowers a mothers risk from indoor air pollution or
water borne illness. Electricity also enables better il-
lumination in health clinics for safer night deliveries.
Poorly ventilated surroundings have been linked to
chronic respiratory diseases like tuberculosis, bron-
chitis, and lung cancer.[34]
Combat HIV/AIDS, malaria, and other diseases:
Electrication allows for sterilization, illumination,
and refrigeration. Modern communication tech-
nologies can also aid information dissemination
from public health ocials.
Ensure environmental sustainability: Transition-
ing to modern energy models will facilitate future
sustainable resource development and slow present
land resource degradation. Research has linked
charcoal production to desertication and deforesta-
tion [29]
-Adapted from table 2.1 in [29][35] The Forum
of Energy Ministers of Africa. Energy and the
Millennium Development Goals in Africa. Rep.
N.p.: ESMAP, n.d. Print, pg 10. Originally
from The Energy Challenge for Achieving the
Millennium Development Goals. UNEnergy,
New York, USA.
Comparison to the Energy in the
U.S.A. and the U.K.
Energy in the United States
Energy in the United Kingdom

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 9

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