In this era of climate transition, the world is rushing towards sustainability, and Africa wants to follow suit. Despite the continent’s numerous clean energy projects, fossil resources continue to play a dominant role in many economies.
Challenges of the energy transition in Africa
Africa struggles to achieve carbon neutrality despite its unparalleled potential in renewable energy resources. The continent’s energy transition is hindered by significant logistical and financial obstacles. Moreover, uncertainties persist regarding the commercial viability of projects, particularly due to the low electricity demand among African populations.
Insufficient foreign investments
The African Energy Chamber (AEC) reports that financial commitments from northern region partners are currently insufficient to achieve the continent’s energy security. Likewise, green energy solutions struggle to materialize. The 100 billion USD annually promised at the end of the Paris Agreement to support developing countries faces significant delays. Additionally, the high borrowing costs for African countries deter entrepreneurs from investing in the energy sector.
Inadequate infrastructure
In Africa, green solutions funded by international institutions like the World Bank and the European Union often focus on photovoltaic and wind farms. Produced in isolated areas, far from urban centers, their development is hindered by a lack of suitable transportation and storage infrastructure. This gap compromises the ability to provide reliable and accessible renewable energy to African populations. Expensive infrastructure in materials, road networks, and power lines is essential to deliver electricity.
Non-energy sectors and other uses
Fossil resources also serve non-energy purposes that electrification cannot replace in the short or medium term. For instance, cooking largely depends on biomass and charcoal. Electrification of transportation is also slow due to the predominance of second-hand vehicles. Other sectors, such as cement manufacturing, steel production, and nitrogen fertilizer production, will continue to rely on oil and gas until the 2040s-2050s.
Potential and temptation of fossil energies
The persistent attraction to exploiting African fossil energies endures, with considerable untapped reserves. The continent’s oil reserves are estimated at 125 billion barrels, each equivalent to 159 liters, nearly ten times those of Europe and even surpassing those of Russia. Africa’s gas reserves reach 12,900 billion cubic meters, while coal reserves amount to 15 billion tons, sufficient to meet the continent’s current needs for 70 years.
Climate urgency prohibits the exploitation of fossil resources, but some African governments seem to be in favor of this activity. Equatorial Guinea’s Minister of Energy, Gabriel Mbaga Obiang Lima, asserts that energy security must precede the transition to renewable energy. The continent has the right to base its development on these resources, as other regions have done in the past. Similarly, Senegalese President Macky Sall emphasizes that depriving Africa of access to its natural underground resources is unjust.
Africa’s socio-economic urgency accentuates the interest in fossil energies. Exploiting these resources is see of the most profitable options to overcome crises induced by global circumstances. Meanwhile, the continent multiplies efforts to adopt clean energies. Investors are most attracted to these fossil reserves and aim to exploit them efficiently. After installing gas or oil plants, operators seek to extend their lifespan to maximize their return on investment.
Towards a solidarity energy transition
Developed countries urge Africa to abandon fossil energies despite their persistent dependence, ignoring the continent’s unique challenges in accessing energy. Another crucial point is Africa’s low contribution to greenhouse gas emissions. Even if the continent uses its fossil resources, its carbon emissions will remain below the global average, between 0.4 and 0.6 tons per capita by 2050.
Using fossil resources wisely
Fatih Birol, director of the International Energy Agency, suggests using African gas reserves to meet the domestic needs of its population. The agency reports that even if the sub-Saharan region exploited its reserves, its CO2 emissions would only increase from 3 % to 3.5 %.
Exploiting fossil energies for export poses a risk of stranded assets in the context of global decarbonization. Hence, the world encourages African countries to seek more international funding for the energy transition. Without these funds, African countries will be tempted to sell gas to finance clean energy and their development.
Restructuring international financing systems
To support Africa’s energy transition, UN Secretary-General Antonio Guterres proposes a reform of the global financial system. African nations pay heavily, up to four times more, to borrow than the United States and eight times more than the wealthiest European countries.
Specifically, this reform must include an effective debt relief mechanism, favoring payment suspensions, extended loan durations, and more affordable interest rates. This restructuring also involves the economic model of multilateral development banks to boost private financing at affordable rates to help developing countries build truly sustainable economies.
