06 August 2014, Lagos – Nigeria and other sub-Saharan countries will need N48 trillion, about $300 billion to boost power supply in the African continent, according to the International Energy Agency, IEA latest report.
The Agency further stated that electricity is more expensive in Africa than anywhere else in the world, just as it emphasized that Africa’s power deficit is a major constraint on economic growth and social development of the continent.
The report from the Agency noted that “Excluding South Africa, per capita consumption of electricity in sub-Saharan Africa is 10 KWh (Kilowatt Hours) per month, while in high income countries this figure is almost 1000 KWh.
In some countries in Africa,it added that backup generators supply is up to half total generation capacity, explaining, in part, why electricity is more expensive on the continent than anywhere else in the world; up to three times as much as those in the United States or Europe.
This is a social disaster, reducing Africa’s ability to create jobs or industrialise its economies. At a basic livelihoods level, there are 600 million people on the continent with no regular access to power, relying solely on charcoal, wood and biomass for cooking.”
Meanwhile, Vanguard gathered that The Global African Investment Summit (‘TGAIS’) in London has concluded arrangement to bring together African governments and the international finance community to tackle this critical issue.
With government delegations presenting bankable investment projects to global investors, TGAIS noted that it will help secure funding needed to transform Africa’s economies from some of the world’s largest financial institutions and investment funds.
TGAIS is working with African governments to bring those bankable projects to the international market. Organised by former Nigerian President Olusegun Obasanjo and led by the Presidents of Rwanda, Uganda, Ghana, Tanzania and Togo. TGAIS will present major power projects from across the continent including greenfield gas, solar and wind plants as well as national distribution networks and privatisation opportunities.
One such project is the Grand Inga Dam, a project that – if realised – will revolutionise the supply of power to Africa by providing as much as 40,000 megawatts to southern Africa. The electricity will be far cheaper than current supply and, critically, comes from a renewable source.
The energy produced by just this one dam could power homes and businesses in the Democratic Republic of Congo, South Africa and possible other countries in the region. The dam already has World Bank support through technical assistance funds to help make the project bankable for investors.