Africa’s Energy Sector needs to bolster energy efficiency through investments that should be scaled up to over three percent of their Gross Domestic Product from the paltry 0.4 percent and further slash subsidies on some of their petroleum products to meet demand for the over 650 million population, the African Development Bank (AfDB) has proposed.
Under a new plan billed to scale up power in the 54 African states by 2030, the continent needs to boost investment in energy from 0.4 percent of GDP to 3.4 percent and consider scaling down subsidies for among other petroleum products, diesel and kerosene.
This is according to the bank’s plan of action to bolster Africa’s energy potential in which it has dangled about US$12 billion to promote energy efficiency in several countries on the continent in the next five years.
The 15-member states of the Southern African Development Community (SADC) are also grappling to meet energy demands following persistent low rainfall in the region, spurred by the El Nino in which the sub Saharan Africa, in general, needs to scale up its potential to benefit from its funds available.
According to the Pan-African financier, it will put aside about $12 billion for investment in the energy sector in Africa including solar, hydro, agriculture, and women empowerment, among others.
AFDB said in a recent report that Africa has huge potential in hydro, solar and thermal power, which all needs to be maximised to grow the continent’s energy potential.
Under the Africa Development Bank’s programme dubbed: “New Deal Initiative” that was launched last week on the side-lines of the World Economic Forum in Davos, the bank plans to add 160 gigawatts of power to the continent’s current capacity by 2025.
Under the new initiative, the bank plans to invest up to $50 billion to address the continent’s chronic energy shortages.