Publications /
Opinion

Back
Energy in Africa: Challenges and Opportunities
Authors
Manfred Hafner
Simone Tagliapietra
Lucia de Strasser
October 4, 2018

This blog post summarizes the key findings of the new book Energy in Africa: Challenges and Opportunities, co-authored by Manfred Hafner, Simone Tagliapietra and Lucia de Strasser of the Italian think-tank, Fondazione Eni Enrico Mattei. The book, published by Springer, is freely available online.

The book presents a picture of the current energy challenges on the African continent- the Sub-Saharan region in particular- and proposes pathways to an accelerated energy transition. Beginning with an analysis of the status-quo and the outlook for Africa’s energy demand and energy access, it provides an account of the available resources, including hydrocarbons and renewable energy resources, which play an increasingly crucial role on the African continent nowadays. It then moves on to analyze the level of investment required to scale-up Africa’s energy systems, shedding light on the key barriers and elaborating on potential solutions. Additionally, Energy in Africa provides solutions for improving the effectiveness of EU–Africa cooperation. While mainly intended for policymakers and academics, this book also speaks to a broader audience interested in gaining an overview of the challenges and opportunities of the African energy sector today and in the future.

Chapter 1 – The Challenge of Energy Access in Africa

There are multiple dimensions to the problem of energy access in Sub-Saharan Africa, where large shares of population lack a reliable supply of electricity and affordable modern cooking fuels: such as  insufficient power generation capacity, difficulties in managing energy infrastructure and attract investments in the sector,  challenges in serving low-income users. Booming populations, urbanization, and ambitions of economic development will all require more and more energy. This chapter illustrates the main challenges ahead towards the sustainable development objective of achieving universal access to electricity and clean cooking in the region. 

Chapter 2 - The Role of Hydrocarbons in Africa's Energy Mix

Africa is rich in hydrocarbon resources, with some countries ranking among the biggest exporters in the world. Compared to North Africa and South Africa - where this endowment translated into the creation of domestic markets - the rest of Sub-Saharan Africa investments have largely focused on the upstream industry for export. This chapter elaborates on the possible role of hydrocarbon resources in the future of SSA countries, taking into account the new reality that renewable energy is becoming more and more competitive as well as the fact that – despite increasing climate and environmental concerns that see international financing institutions increasingly reticent to support investments in fossil fuels – the sector remains strategic for many countries.

Chapter 3 – Prospects for Renewable Energy in Africa

Not long ago, renewable generation was an expensive choice to be subsidised by industrialized governments to signal an intention to shift to clean energy, however today renewable resources are becoming strategic assets for developing countries too, as the global industry grows stronger and the cost of technology falls dramatically. Their potential is particularly evident in Africa where solar, wind, hydro, geothermal, and biomass resources are abundant. While it is becoming evident that renewables  have a major role to play in the electrification process of many countries in the region – including at small scale and off-grid – and several challenges remain when it comes to establishing appropriate regulations, attracting foreign investments, and even sometimes simply setting clear and attainable targets. After describing the distribution of resources, this chapter looks at the policy frameworks in place in order to point at possible ways forward.

Chapter 4 – Energy Investments for Africa's Energy Transition

The challenge of bringing modern energy to everyone in Sub-Saharan Africa is a unique challenge that requires substantial investments as well as a strong commitment to make the energy sector more effective and efficient within the single countries. This chapter suggests that both African governments and the plethora of foreign investors have the opportunity to improve the situation, taking action respectively in terms of structural reforms (of power utilities and pro-poor subsidies) and in the coordination and streamlining of financial assistance. Notably countries and institutions of the EU – together with the World Bank Group the largest investor in energy development in the region – could easily reduce the bureaucracy and redundancy of existing electrification programs to achieve greater impact. In this process, the objective of universal clean cooking and the actual investments required to achieve it (particularly in LPG and bio-energy) should not be forgotten.

RELATED CONTENT

  • Authors
    Zakaria Elouaourti
    September 13, 2024
    This Paper was originally published on emerald.com   Purpose This paper examines the dynamics of structural transformation in Morocco since 1970 by analyzing input-output tables expressed in terms of employment and output levels across 24 sectors. Design/methodology/approach This study employs a twofold methodological approach. Firstly, it examines the evolution of sectoral employment shares over time using World Bank data. Secondly, it utilizes Input-Output analysis to examine ...
  • Authors
    Under the supervision of
    July 12, 2024
    The report will soon be available for purchase.   The 2024 Annual Report on the African Economy is dedicated to monetary and financial issues on the Continent. There are three reasons for this choice. African economies are exposed to macro-financial instabilities partly generated by global monetary and financial turbulence. The Continent’s currencies and financial systems are engaged in very different dynamics, where routine methods and daring, if not risky, practices coexist. ...
  • February 8, 2024
    Depuis 2016, on assiste à une dynamique de création de fonds souverains africains. En 2023, on recense 21 pays et 24 fonds souverains. Sur la seule période 2016-23, celle de la deuxième vague, huit pays vont se doter d’un premier fonds souverain, et d’un deuxième, dans le cas du Maroc, en 2022. Cette étude rappelle tout d’abord l’historique d’une création qui commence, dès 1994, au Botswana, avec le Pula Fund, précisant pour chacun des 24 fonds leur date de création, leur ...
  • Authors
    Ilham Najib
    January 29, 2024
    Morocco is positioned as a new global hub of the automotive industry in an increasingly volatile international context, with various emerging countries competing intensively to gain the best returns on openness and globalization. The Moroccan automotive industry’s recent performance shows it to be the most dynamic sector in the economy: from 2014 to 2019, value-added in the automotive sector increased by almost 70% while the overall national value-added increased by only 15%. In the ...
  • Authors
    January 2, 2024
    This paper was originally published on The South African Institute of International Affairs (SAIIA) In order for Africa to raise living standards, create employment for youth and diversify exports, it must industrialise. Until recently, sub-Saharan African (SSA) countries made limited progress in manufacturing value addition and employment, mirroring the de-industrialisation trend seen in many developing countries. To propel industrialisation, SSA countries should adopt flexible st ...
  • December 28, 2023
    In this episode, we interviewed Mr. Arkebe Oqubay Metiku, British Academy Global Professor, SOAS University of London around Africa's industrial policies and their impact on growth. We discussed key elements such as innovation, regional collaboration, sustainability, and intellectual pr...
  • November 30, 2023
    In this episode, we dive into the pressing necessity for climate initiatives in Africa. Despite its minimal global emissions, Africa grapples with severe climate challenges and a substantial funding shortfall. Yet, as obstacles persist, including the disconnect between investor expectat...
  • Authors
    Ali Elguellab
    Elhadj Ezzahid
    November 1, 2023
    The role of the production network in shock propagation has been an issue of considerable interest since the Great Recession. However, the empirical literature has only focused on advanced and emerging countries. This paper aims to contribute to filling this gap by examining the case of Morocco, a developing country belonging to the lower-middle-income group. The question is whether its production network is a factor in amplifying idiosyncratic industry-level shocks or, conversely, ...