The next global crisis: Africa’s renewable energy financing gap
September 11, 2022 - Michael Olabisi, Robert B. Richardson, and Adesoji O. Adelaja
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Energy consumption across the African continent is expected to increase sharply in the next two decades, largely due to population growth, urbanization, and rising incomes. Much of the energy consumption is in the form of wood biomass, kerosene, and diesel. Africa’s energy demand trajectory points to a future scenario where its contribution to global greenhouse gas emissions will threaten global sustainability. Furthermore, existing supply capacity is unlikely to meet the rising demand for energy. Africa’s transition to renewable energy is needed to balance future energy supply and demand with climate-related externalities. A key barrier to this solution is Africa’s energy finance gap, which calls for a concerted effort by investors in Africa’s energy markets and governments, as well as global development partners. We highlight the direct link between Africa’s energy finance gap and the long-run scenario for the global climate crisis.
