Where the Sun Shines
| Author | Gregor Schwerhoff and Mouhamadou Sy |
| Position | GREGOR SCHWERHOFF is an economist in the World Bank's Macroeconomics, Trade and Investment Department. MOUHAMADOU SY is an economist in the IMF's Fiscal Affairs Department. |
| Pages | 56-59 |
54 FINANCE & DEVELOPMENT | March 2020
Renewable energy sources, especially solar, are ideal for meeting Africa’s
electrical power needs
Gregor Schwerhoff and Mouhamadou Sy
A
bout half of sub-Saha ran Africa’s pop-
ulation today does not have access to
electricity. ose who do have elec-
tricity pay on average nearly tw ice as
much as consumers elsewhere in t he world. Power
shortages cost the continent about 2 to 4 percent
of GDP a year.
And the large elect ricity needs will only grow in
the foreseeable future. Given that t he population
in sub-Sahara n Africa is expected to grow from
1 billion in 2018 to more than 2 billion in 2050,
the demand for electricity is projected to expand
3 percent a year. is takes into account a steady
increase in access to electricity as well as g reater
energy efficiency.
Meeting that demand with current energy
sources would have severe consequences for
health and the environment. e current energy
mix in Africa is based mostly on burning coal,
oil, and traditional biomass (wood, cha rcoal, dry
dung fuel). is reflects the energ y resources of
the continent, but also the use of technologies
of the past. While this energy mix is c ompar-
atively cheap, it is insufficient to meet current
needs, and negative effects on the environment
are left unaddres sed. e continent’s sources of
energy will need to cha nge, especially if Afric an
governments aim to achieve a healt hy environ-
ment for their citizens and meet the emission
limits for greenhouse gases set out by the 2015
Getting the energy mix right
Fortunate ly, thanks to notable technolog ical
advances, Af rica does not have to rely on large
amounts of fossil fuel, as adva nced economies did
Shines
WHERE
the
Sun
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