Energy is the biggest problem for Africa's economy, explains IEA director

Energy is the biggest problem for Africa's economy, explains IEA director

Fast in Subsahara-Africa live without access to Electricity, which creates enormous development barriers. This power poverty not only inhibits industrial growth and agricultural efficiency, but also has a negative effect on health and education. Often students have little light to learn, vaccines cannot be cooled and the lack of clean cooking technologies leads to serious air pollution in households - this causes 700,000 premature deaths annually.

investments in the energy supply of Africa

According to the International Energy Agency (IEA), energyinvestitations in Africa in decreased in recent years. Current programs such as Mission 300 to supply 300 million people with electricity in the next six years.

The challenges of energy supply

CNN journalist Eleni Giokos spoke to Dr. Fatih Birol, the executive director of the IEA, about the current state of energy supply in Africa and the challenges that the continent has to cope with.

Eleni Giokos: When we speak of 600 million people who suffer from the continent of energy or have no access to electricity, how much investment is necessary to close this gap?

Fatih Birol: Africa is a continent of contrasts in the energy sector. It has numerous energy sources: oil, gas, solar energy, wind power, geothermal energy and hydropower. At the same time, however, the use of this energy is very low. Every second person in Africa has no access to electricity, and at the same time four out of five households use open fire to prepare their meals. The lack of energy prevents Africa's development - this is perhaps the biggest problem in relation to the African economy.

necessary investments for sustainable energy

What does Africa need? We need large energy sources that are combined with investments and financing to implement projects and to provide people and the economy energy. The energy sector in Africa currently receives around $ 100 billion in investments. However, in order to see a future in which Africa provides its citizens clean energy, at least three times as high investments are required - that is about $ 300 billion. These investments should come from the countries themselves. Africa has enormous potential, and with the right investment guidelines, it shouldn't be difficult to attract foreign investors. The problem is that foreign investors see Africa as a risky investment climate. The task of the governments is to minimize these risks, reduce bureaucracy and increase transparency instead of creating uncertainties for investors. Investors should be convinced that they will achieve an appropriate return if they invest in African energy - and that is guaranteed.

The influence of the African energy transition on climate change

If you look at the global carbon emissions, Africa only 3% to the energy -related emissions. The continent has an astonishing opportunity to industrialize itself, in a different way than the rest of the world. Which strategy concept in your opinion should be pursued?

The climate sins of Africa are almost negligible. The proportion of Africa in the global energy-related CO2 emissions is less than 3%, but the worst consequences of climate change in Africa can be felt. I look at the future of African energy, especially in terms of electrification. Renewable energies will play a very important role: solar energy, wind power, hydropower and others. However, it is not just the electrification that is necessary for the industrialization of the continent; Other energy sources must also be used. I believe that Africa should use its natural gas resources responsibly - the continent has enormous natural gas deposits. Africa should use all of its energy sources, including solar, wind, hydropower and, if necessary, nuclear power to develop. It is time to grow in Africa, and the country needs a lot of energy - in a clean, safe and affordable way.

opportunities through the African continental free trade agreement

The African continental free trade area, the ambition to create the largest merchant block in the world, will change the game. How do you see the cooperation of the African countries in this context?

The idea is very good. If we manage to promote trade between African countries, this can increase the costs of many projects and reduce tax problems. This can boost investment needs in Africa if it is implemented properly.

progress in energy supply

In which countries you see progress, which are you hopeful?

I don't want to highlight a single country, but I see that governments across Africa are increasingly understanding that they cannot make their citizens happy or wealthy without solving the energy problem. If there is no energy, there is no stability. If the energy is missing, there is no economic growth. Africa has to tackle this problem. Some governments in Subsahara Africa are making very good progress, while others unfortunately fall back.