Starting With Energy, Let’s Invest Heavily in Africa -- we can all benefit from Africa’s prosperity."

Source:

https://www.realclearenergy.org/articles/2022/02/21/starting_with_energy_lets_invest_heavily_in_africa_817863.html

"The escalating tensions (in) Ukraine ... have reinforced the dangers of Europe’s energy reliance on Russia.

To partially blunt the threat and diffuse the leverage Russia holds over the continent, America and its allies recently announced plans to work with energy suppliers from Africa and the Middle East to bolster energy supplies to Europe. 

Although this presents a short-term remedy to the immediate crisis,

it should also serve as motivation for the global community to invest long-term to help develop sustainable resources and diverse countries’ energy portfolios, particularly in Africa. 

As the president of the host country of the upcoming COP27 climate talks recently stated, investing and encouraging African nations toward a clean energy transition should be an international priority.

To assist in this endeavor Africa needs investment from across the globe.

Last week’s announcement by the European Union of a $170 billion to the continent as part of the Global Gateway Initiative project is a great example.

The money will be allocated for programs such as infrastructure investments and sustainable development.

The United States is also contributing to these efforts through its Prosper Africa initiative. 

Africa is facing its own energy crisis with more than six hundred million people still lacking access to electricity.

This basic limitation only leads to further volatility and instability, especially in the aftermath of the economic shocks brought by COVID-19. 

Sustainable projects in Africa could provide millions of Africans with desperately needed power and could lead to higher employment, stronger growth and innovation. 

The development of Africa will not only transform the continent itself but the entire global economy and international order.

The continent has the fastest growing population and possesses an overwhelming proportion of critical resources needed by the present and future global economy.

 By 2050 more than one of every four people will live in Africa,

its GDP will increase to 17% overall, and

approximately 20% of the world’s energy supply will come from Africa.

The EU and American-led efforts are encouraging and will play an important role in the continent’s economic expansion and development. 

But much more is needed to achieve Africa’s full potential. 

At the core of all economies are decisions made by the private sector.

Countries across Africa need investment from the global community of companies, banks and philanthropists.

This is why our organization, the African Investment Forum, is scrutinizing and shortlisting deals across Africa that meet specific criteria, including a positive environmental and social impact.

The AIF is working hard to find, promote, facilitate, and complete the deals Africa needs.  

African countries must grow into green, sustainable and modern economies from scratch while also improving living standards and managing rapidly rising populations.

Balancing these demands is why it is vital investment into Africa is done with high-quality decision making that meets targets across social welfare, sanitation, agriculture, climate change and a great many others.

This is not just development theory:
    A great example of the AIF’s high-quality work is the ongoing development of a manufacturing plant in North Africa to produce advanced solar panels,

which provide an integrated source of renewable energy, clean water and hot sanitation water.

The project is expected to contribute to the reduction of greenhouse gas (GHG) emissions by 42 million tons of CO2 per year and to ultimately supply electricity to more than 100 million households.

It is a remarkable example of how innovation is key to providing the solutions we need. 

This is also not just a success story; rather, it underlines the entire approach needed to achieve economic growth while also continuing the historic expansion of basic human provisions in Africa.

Supporting Africa toward a path of self-sufficiency is in all of our interests.

Governments and businesses around the world should advance and accelerate sustainable programs, and with this shared purpose and ambition we can all benefit from Africa’s prosperity."

Author Chinelo Anohu is the Head and Senior Director of the Africa Investment Forum.