JOHANNESBURG - Africa needs cumulative investments of $2.6 trillion between 2019 and 2040 to meet rising energy demand and provide more accessible facilities to citizens as the continent's population expands, a report released on Monday shows.
In its Africa Energy Outlook 2019 report, the International Energy Agency (IEA) said Africa was experiencing the fastest progression of urbanisation the world over, and that its overall population was projected to expand by 600 million before 2040, accounting for half of the global increase.
These shifts, it said, would drive the continent’s economic growth, infrastructure development and, consequently, energy demand, which was predicted to rise by 60 percent.
"While this energy gap remains a major barrier to Africa’s sustained economic development, it inversely presents opportunities for many African nations such as current advancements in the liquefied natural gas (LNG) market, potential for realising onshore value, while simultaneously driving innovation in the raising of extensive financing for African projects, to name a few," the report stated.
With appropriately funded, developed and executed policies, Africa not only had the potential to close the energy gap by providing millions of its people with access to electricity by 2030, but could become the first continent to boost its economy largely through the use of modern, low-carbon energy sources.