Energy & Power
Africa’s energy production is about 9.5% of the world’s total output, including 12.1% of the world’s crude oil production; 6.6% of natural gas output; 4.7% of the world’s hard coal; and 3.1% of hydro-electric power. The continent holds 9.7% of the world’s proven oil reserves, including a large portion of new discoveries.
Africa is a huge net exporter of energy resources (475 million tones of oil equivalent per year) equivalent to 40-45% of the continent’s production. Yet the continent’s 930 million inhabitants consume the least amount of energy per capita. Africa hosts just 3.6% of global refining capacity; generates only 3.1% of the world’s electricity; and consumes only 9% of its total oil production, exporting the rest. Its share of world energy consumption is only 3% compared to its 14-percent share of the world’s population.
Endemic low per-capita consumption of energy is both a cause and consequence of Africa’s prolonged poor socio-economic performance since the first oil shock in the early 1970s, particularly in oil importing Sub-Sahara African countries.
Projects portfolio
| Reference | Project | Status |
|---|---|---|
| P-ML-FA0-002 |
Projet d'éléctrification rurale Country: Mali |
PipelinePIPE |
| P-ML-FG0-001 |
Dev.Plateformes Multifonctionnelles Country: Mali |
LendingLEND |
| P-MR-FA0-003 |
Projet d'éléctrification rurale Country: Mauritania |
PipelinePIPE |
| P-RW-FAD-001 |
Interc. réseaux élèct. Rwanda & Ouganda Country: Rwanda |
PipelinePIPE |
| P-TZ-FA0-009 |
Iringa - Shinyanga Tx Project Country: Tanzania |
LendingLEND |
Increasing energy access: a priority
Increasing energy access is a priority for Africa. A large segment of the continent’s population, especially in Sub-Sahara Africa and in the rural areas of the continent’s middle-income countries (MICs), lives in conditions of acute 'energy poverty'. Foraging for fuel for domestic uses takes up a disproportionate share of productive and leisure time mostly of women and children. And, it is a back-breaking activity. Health impairment and an unacceptable high rate of mortality in the order of 400,000 deaths from respiratory diseases per year are linked to exposure to indoor pollution from ‘dirty fuels’ in poorly ventilated dwellings.
Energy poverty is also associated with deprivation of adequate light to facilitate evening and night-time chores and leisure activities. Thus, for example, children have less time to study at home in the evenings.
Beyond domestic energy supplies, the high cost of transportation services due to scarcity of refined liquid fuels, and 'information poverty' linked to incapacity to communicate with the wider world due to lack of electric power and the high cost of alkaline batteries all limit people’s participation in national, regional and global activities, including trade.
At the level of production, energy scarcity and insecurity reduces producers’ range of possibilities and undermines their competitiveness in national, regional and international trade systems. In short, lack of energy security perpetuates poverty.
The AfDB estimates that, even with expanded access to electricity for more than 90% of the continent's rural population by 2030, rural demand for electricity will account for only about 10% of total power generation. The rest will come from urban areas where the energy-intensive industry and service sectors are predominantly located. Taking into account a wider range of energy sources, including biomass, rural populations are expected to exert about 20-25% of total final energy consumption demand by 2030. Thus, rural energy demand is not overwhelming.
Nevertheless, AfDB’s experience is that conventional approaches to rural electrification are not cost effective means to attaining the goal of access-for-all to electricity in rural areas. Geographical realities suggest that decentralized, autonomous energy infrastructure development harnessing local resources – most often, renewable – is an option to increasing rural energy access.
On the other hand, integrated national power grids and fuel bulk supply systems interconnected at the three regional or multi-country levels are the most cost-effective and reliable means to meeting the energy needs of populations and economic sectors.
Africa’s policy-makers therefore face the challenge of simultaneously having to meet the two types of growing energy demand within the context of robust economic growth, social transformation, and poverty reduction. One dimension of the challenge is mastering cost-effective technologies for sustainable exploitation of energy resources be it at the micro or macro levels. Another dimension concerns the mobilization of investment resources and financial sustainability considerations. Yet, a third dimension concerns the appropriate institutional arrangements to support rural decentralized energy systems and the level of integration between rural decentralized energy supply systems as well as nationally and regionally integrated energy supply systems.
Key facts
- The energy sector is responsible for roughly two-thirds of greenhouse gas emissions.
- Africa’s energy production is about 9.5% of the world’s total output. It is a net exporter of energy resources.
- Hydropower represents 45% of Sub-Sahara actual electric power generation, but only 4% of the sub-continent commercially exploitable potential has been tapped.