7 September 2015 - Africa’s power sector struggles under low access and insufficient capacity. Only 35 percent of the population of Sub-Sahara Africa, including South Africa, has access to electricity while more than 90 percent of the populations of Burundi, Chad, Liberia, Malawi, and South Sudan lack access to a power grid. Most African countries, except South Africa, face severe power generation capacity deficits even compared to international peers of similar economic size.
Sub-Sahara Africa is distinguished by its reliance on renewable power sources. About 70 percent of Sub-Sahara Africa's energy comes from renewables, particularly hydroelectric sources, according to the World Bank. As a result, the renewables sector has encouraged robust foreign investment. For example, nearly three quarters of the total $41.6 billion energy-sector investment from China during the period 2005-2014 targeted hydropower.
Even with the investment appeal of nonfossil fuel power generation, total investment into Africa’s energy sector falls well short of the required level to enable faster growth. The slow pace of infrastructure development leads the US Energy Information Administration to project that total energy consumption in Africa will increase by only 24 percent during the next ten years. In addition, investment in Africa’s energy sector is often “bring-your-own-infrastructure” in nature, forcing companies to build their own power stations for other enterprise projects and lacking a national-level oversight to ensure targeted build-out and connectivity. Without such strategic oversight, impoverished populations are seldom able to provide enough demand to ensure self-sufficiency of new power stations to attract investment.
Key Statistics about this commodity Source: Food and Agriculture Organization of the United Nations; World Bank