A Reflection on Renewable Energy in an African Context

The African continent offers an interesting landscape on various levels – politically, socially, and economically. 70% percent of Africa’s population is aged below 30, making it a host for the youngest population in the world as well as a fertile space for innovations and opportunities (Mulikita, 2024). Eclipsing this promising figure is the shadow of 640 million Africans who do not have access to electricity, around half of the continent’s population (Ighobor, 2022). The math is easy and there is only one outcome: African youth have inadequate access to power.

It is unrealistic to expect consistent economic development without providing continuous access to a reliable environment of growth. As of 2024, Africa is experiencing an overwhelming combination of water and energy scarcity; both of these issues are expected to amplify as the world continues to move further into the climate crisis heading to a boiling point (Nkatha,2024). This nexus of scarcity calls for an in-depth discussion surrounding the continent’s usage of its own resources and the relationship this has with the ever-pressing concern of a volatile climate.

On Wednesday, June 26, the School of Business at the American University in Cairo (AUC) held the second episode of the Business Schools for Climate Leadership Africa (BS4CL) webinar series, which was moderated by Morris Mthombeni, Dean of the University of Pretoria’s Gordon Institute of Business Science (GIBS). The webinar titled, “Energy Transition, Opportunities and Challenges in Africa,” fostered a discussion between Jean-Paul Adam, Jean-Paul Adam, Director for Policy, Monitoring and Advocacy in the Office of the Special Advisor on Africa to the United Nations Secretary-General, Shameela Soobramoney, Chief Executive Officer of the National Business Initiative (NBI), and Ivan Miroshnychenko, Research professor of Family Business and Sustainability at the International Institute for Management Development (IMD).

The general consensus of the session could be summed up in the Director for Policy, Monitoring and Advocacy in the Office of the Special Advisor on Africa to the United Nations Secretary General’s remark, “Energy transition or transformation is the first step towards the reformulation of an African economic model based on value addition and more sustainable value chains.”

A Link Between Economy and Climate
Around 50% of the workforce in the continent is concentrated in the agricultural sector with the general trend of labor moving into the services industry (Blimpo et.al,2024). The African continent is currently relying on low-productivity sources of income which suggests a much-diminished pace towards economic development. While industrialization is not entirely missing, it has not reached the adequate level that would allow it to lead the continent to a steady path to economic development. The industrial sector is arguably the most traditional accelerator of economic development; therefore, it is important to understand the challenges that it faces, but also the opportunities that could be created to ensure its growth.

It is arguably impossible to have a balanced discussion of development, industrialization, and production without bringing in the subject of energy sources and subsequently, climate change to the table. “There is no energy security [in Africa],” stated Soobramoney in response to a question regarding the relationship between development and energy within the continent. With half of the continental population unable to access electricity, it would be illogical to expect a full-fledged ability to bridge the manufacturing gap. Therefore, it is essential to explore the avenues of energy which could be the leeway towards economic development.

Using South Africa as a case study, Soobramoney highlighted that 80-90% of energy is produced from coal, a fossil fuel. Here, Jean-Paul Adam chimed in to underline that in spite of fossil fuels dominating the African economy on an aggregate level, this industry only contributes to around one percent of the total continental workforce. Thus, in simple terms, while fossil fuels may be majorly contributing to cash flow within the continent, they do not provide economic advancement in terms of employability and opportunities. Furthermore, these energy resources in themselves are unequally distributed which further affirms the continent’s lack of reaching a consistent aggregated push towards industrialization and consequently, economic development.

Shifting the discussion to the topic of fossil fuels, climate change becomes a focal point. Research conducted on the continent with regards to energy often puts climate change and renewable energy at the forefront rather than discussing the in-depth aspects of energy transformation but also what this means for Africa, its resources including raw materials and workforce (Blimpo et.al,2024). The continent contributes the least to greenhouse gasses emissions contributing to less than three percent of the carbon dioxide emissions per capita as of 2022 (International Energy Agency: IEA). This is misaligned with the fact that the continent suffers the most with regards to climate change. This is due to the continent’s overreliance on climate-sensitive economic activities such as agriculture as well as the lack of resources in terms of responding to these climate concerns (Alagidede et.al, 2016). Climate change further hinders economic development in Africa, thus, bringing it forward alongside the issue of renewable energy is paramount.

Energy Transition in an African Context
“We have to hold our narrative,” says Soobramoney with regards to transitioning to renewable energy. Energy transitions are often discussed through the lens of the Global North, given that it comprises of the countries that contribute the most to greenhouse emissions, which coincide to be More Economically Developed Countries (MEDCs) that have reached an advanced stage of industrialization and have established an adaptable infrastructure (Sovacool et.al, 2020). Contrastingly, the African continent is at the basic stage of transitioning from “where there is no access to energy to where there is access,” as Jean-Paul Adam puts it. Therefore, the prediction with regards to Africa’s transition towards renewable energy as well as its capacity to do so must be tailored to the conditions of each country in the continent. The technologies for producing renewable energy such as solar, water, and wind power exist in the continent, however, the level of distribution is unequal which means that an immediate transition will not be feasible, adds Jean-Paul Adam.

For instance, the President of the African Development Bank (AFDB), Akinwumi Adesina highlighted that by switching from coal to natural gas, the greenhouse emissions of the continent could be reduced by 40% as of 2022 (Ighobor, 2022). This shows that while Africa might not be immediately hit the mark with regard to renewable energy, a much more contextual lead-up could result in a remarkable improvement. The African continent is therefore in need of a mixed plan that provides dynamic strategies to set a sustainable and durable path towards development through renewable resources.

Both Soobramoney and Jean-Paul Adam emphasize the need for an adaptable mixed-energy plan but also for supporting and re-skilling the current and potential workforces. This way, the transition towards renewable energy could be fairly accessible to a larger number on the individual level, particularly in terms of education so that the workforce is well-prepared for the direct leap towards renewables. Immediately transitioning to sustainable energy is challenging, nonetheless, the fact that the African continent is an almost clean slate when it comes to energy infrastructure, allows a unique opportunity for an intentional fresh and stable start.

Collaboration and Optimization
What can be done to optimize the process of transition in the context of Africa? Miroshnychenko suggests that the key is to enable local businesses to dig the long path to sustainability. This suggestion interestingly links up with the fact that family-owned businesses represent around 70% of the continent’s bulk of small and medium businesses (Withagen,2021). This means that family businesses can be the organic start of the transition towards renewables as they are much smaller than international corporations which means that access to change channels is higher, thus arguably more efficient, Miroshnychenko emphasizes. The same view is provided by Soobramoney who pushes for the importance of collaboration between civil societies, small/medium businesses and governments to ensure that change is from within.

For instance, it is important to understand that change driven by foreign aid received by a government might not have a significant effect regardless of the amount of financing given. This is often caused by the fact that these aids might not be tailored carefully to local needs; additionally, local implementers may not have the full agency as to how to use the resources which results in wasted potential (Menkhaus,2014).
Finally, this collaboration should not only be on the local level, but also on the continental one. Jean-Paul Adam emphasizes that African countries with the use of concepts such as Free Trade Zones, could achieve continental economies of scale through the cross-sharing of resources in terms of technologies, energy generation as well as workforce expertise. This could make the use of renewable energies much more lucrative over time than that of fossil fuels, allowing fair prices with less fluctuations on the aggregate. In other words, a shift towards renewable energy could be the real game changer in dealing with the challenges in Africa both on the environmental and economic levels.