Energy investments and sustainable approaches to lighting up Africa

Industrialization and advancement of technology are essential to improving economic conditions in Africa. An important aspect of this is the focus to improve the energy production of African industries. Without adequate energy resources, African societies will be unable to realize the growth levels they seek.

Africa’s growth is dependent on the improvement of key areas for development within the continent. While investments are burgeoning and trade talks are intended to ensure the profitability of investment plans, projected growths are falling short of anticipated rates.

Nigeria accounts for 29 percent of Africa’s GDP which impacts the development of Africa. Any regression in its economy could impact projected growths for other growing economies within the continent. A consequence where the performance of other countries can affect the global perception of growth plans in Africa.

Additionally, South Africa accounting for 19.1 percent of Africa’s domestic production capabilities means that its economy must remain robust if Africa is to grow further into the twenty-first century. This is a condition of the Hollywood effect, where future success is dependent on the profitability of past projects of the same genre. A decline in either sector within these respective countries could impact projected growth in Africa.

The growth in Africa is measured against the success of its two largest economies, and both societies must adapt to the changes surrounding it. Africa’s leading economies must be attentive to the changing circumstances that impact the growth of its economies. It must remain alerted of the debilitating effects of its dependency on the export of energy commodities (namely crude oil). Africa must also be quick to respond to the unforeseen damages to other sectors of its economy (particularly energy).

A restructuring of its export focus—from an emphasis on natural resources to include agricultural and services production is important. This commitment to improving its ability to become a supplier of finished goods to the global market enhances its global negotiating powers. African economies must have the infrastructure needed to grow. They must have reliable sources of energy to be competitive. Reliable energy is essential to advancement, but clean energy sources are needed to sustain these projected growths.

For Africa, these renewable energy plans are well documented and funded. One key energy initiative is the New Deal on Energy in Africa (NDEA). The NDEA is a collaborative plan that aims to provide harmony for other energy improvement programs in Africa. Intended to provide access to the technical and financial tools necessary to sustain the energy plans for Africa, it must be adaptable to the diverse risk factors that exist.

This plan is intended to increase energy commitments, promote collaboration, encourage local and international support of energy investment programs, and provide support for regulatory policies. While these plans are well intended, they must have adjustable strategies to combat all possible risk factors. African economies must be robust to avoid the waste that is associated with delayed growth plans.

Employing productive regional strategies and building international corporation through shared responsibility leads to progress. And a focus on improving the domestic capacity of local producers enhances Africa’s energy commitments. Encouraging more coherence in regional and international agreements and developing collaborative energy strategies creates a competitive and efficient energy market in Africa. Additionally, it creates conditions for shared risks and attentive trade pairings that are mutually beneficial.

Sources: African Development Bank 1, Word Bank