Boosting crisis response and financing key for Africa’s continued progress

Tackling vulnerabilities should be at the center of continent’s development efforts

Addis Ababa, 1 November – While an increasing number of Africans are enjoying higher living standards, countries in Sub-Saharan Africa should redouble efforts to ensure crises such as the current Ebola outbreak in West Africa do not reverse development achievements, according to a report released here today during the African Economic Conference.

Africa’s poverty rates have continued to decline, despite the adverse effects of the recent food, fuel, and global economic crisis, says “Assessing Progress towards the Millennium Development Goals (MDGs) in Africa”, produced annually by the African Development Bank (AfDB), the Economic Commission for Africa (ECA), the African Union Commission (AUC) and the United Nations Development Programme (UNDP).

However, conflict, political instability and natural or man-made disasters threaten to unravel the progress made on the MDGs, the eight internationally-agreed targets to reduce poverty, hunger, maternal and child deaths, disease, gender inequality and environmental degradation by 2015.

“Even after societies recuperate, the potential for development remains impaired long after the crises are over, as human capital is depleted and institutions are weakened,” say the authors of the report. The current Ebola crisis in West Africa, a region that was experiencing significant growth and development progress, is threatening to set back affected and surrounding countries by several years.

“Our sisters and brothers in Liberia, Guinea and Sierra Leone are facing grave challenges, as they fight and battle the Ebola Virus Disease, which over the last few months so abruptly halted their path towards development and reconstruction,” said African Union Commission Chairperson, Nkosazana Dlamini Zuma.

The challenge for the region, says the report, is to ensure continued good governance and accountability, and a sustained focus on social protection for all, including the most vulnerable. The latter are often the hardest hit by crises and shocks.

About 37 countries were implementing cash transfers, public works programmes or insurance schemes in 2013, up from 21 three years earlier and many are in the process of bolstering their health systems and these have had considerable positive consequences.

Stronger partnerships and domestic financing, with strong support from the private sector, are key to furthering improvements in living standards.

“The private sector has a huge role to play in finishing the business of the MDGs and sustaining progress beyond 2015. In fact, part of the work will consist in making sure future investments are safeguarded in the face of crises like the one we are seeing in West Africa,” said Donald Kaberuka, President of the African Development Bank (AfDB).

Over the 1995–2012 period, Africa has made considerable improvements on health-related MDGs. HIV and AIDS prevalence fell from 5.8 to 4.7 percent, owing to strong political will, focused interventions and increased access to antiretroviral therapy. Incidence of malaria and death rates related to the disease fell by an average of 31 percent and 49 percent respectively in Southern, East, Central and West Africa as a whole.

Maternal and child mortality have declined by 47 and 44 percent respectively. That progress is considerable, argues the report, but it falls short of the objective and reflects dire initial conditions, plus limited access to contraceptives and lack of skilled birth attendants and antenatal care.

“The challenge is to make sure Africa, supported by international partners, continues to invest in the sectors that make a difference in people’s daily lives”, said Abdoulaye Mar Dieye, UNDP’s Director for Africa. “A healthy and educated population, stronger communities, inclusive decision-making, better local service delivery, vibrant economies and businesses: these are all needed for Africa to continue to forge ahead.”

The continent is currently on track to meet the primary school enrolment and gender parity targets, with 25 countries achieving net enrolment ratios of 80 percent or above. Gender equality is also on the increase in national parliaments, with the continent ranking third in the world behind Latin America and developed regions.

Further, the report recognizes the importance of the Common African Position on the post-2015 development agenda that outlines Africa’s key priorities, concerns and strategies to be reflected in the post-2015 negotiation process.

“Making sure African economies can transform, diversify and become an engine for job creation and empowerment of communities is key to achieving long-term social progress,” says Carlos Lopes, Executive Secretary of ECA.

Technology, transfer of skills for young women and men, research and development and public-private partnerships have an important role to play in creating dynamic economies and societies, and ensuring countries in Africa can continue to advance.

Energy sector is key to powering prosperity in sub-Saharan Africa - Report

“A better functioning energy sector is vital to ensuring that the citizens of sub-Saharan Africa can fulfil their aspirations,” said IEA Executive Director Maria van der Hoeven. “The energy sector is acting as a brake on development, but this can be overcome and the benefits of success are huge.”

In the IEA’s first comprehensive analysis of sub-Saharan Africa, it finds that the region’s energy resources are more than sufficient to meet the needs of its population, but that they are largely under-developed. The region accounted for almost 30% of global oil and gas discoveries made over the last five years, and it is already home to several major energy producers, including Nigeria, South Africa and Angola. It is also endowed with huge renewable energy resources, including excellent and widespread solar and hydro potential, as well as wind and geothermal.

The report finds that investment in sub-Saharan energy supply has been growing, but that two-thirds of the total since 2000 has been aimed at developing resources for export. Grid-based power generation capacity continues to fall very far short of what is needed, and half of it is located in just one country (South Africa). Insufficient and unreliable supply has resulted in large-scale ownership of costly back up generators. In the report’s central scenario, the sub-Saharan economy quadruples in size by 2040, the population nearly doubles (to over 1.75 billion) and energy demand grows by around 80%. Power generation capacity also quadruples: renewables grow strongly to account for nearly 45% of total sub-Saharan capacity, varying in scale from large hydropower dams to smaller mini- and off-grid solutions, while there is a greater use of natural gas in gas-producing countries.

Natural gas production reaches 230 billion cubic metres (bcm) in 2040, led by Nigeria (which continues to be the largest producer), and increasing output from Mozambique, Tanzania and Angola. LNG exports onto the global market triple to around 95 bcm. Oil production exceeds 6 million barrels per day (mb/d) in 2020 before falling back to 5.3 mb/d in 2040. Nigeria and Angola continue to be the largest oil producers by far, but with a host of other producers supplying smaller volumes. Sub-Saharan demand for oil products doubles to 4 mb/d in 2040, squeezing the region’s net contribution to the global oil balance. Coal supply grows by 50%, and continues to be focused on South Africa, but it is joined increasingly by Mozambique and others.

The capacity and efficiency of the sub-Saharan energy system increases, but so do the demands placed upon it, and many of the existing energy challenges are only partly overcome. In 2040, energy consumption per capita remains very low, and the widespread use of fuelwood and charcoal persists. The outlook for providing access to electricity is bittersweet: nearly one billion people gain access to electricity by 2040 but, because of rapid population growth, more than half a billion people remain without it. Sub-Saharan Africa also stands on the front line when it comes to the impacts of climate change, even though it continues to make only a small contribution to global energy-related carbon dioxide emissions.

“Economic and social development in sub-Saharan Africa hinges critically on fixing the energy sector,” said IEA Chief Economist Fatih Birol. “The payoff can be huge; with each additional dollar invested in the power sector boosting the overall economy by $15.”

In an “African Century Case”, the IEA report shows that three actions could boost the sub-Saharan economy by a further 30% in 2040, and deliver an extra decade’s worth of growth in per-capita incomes by 2040. These actions are:

•         An additional $450 billion in power sector investment, reducing power outages by half and achieving universal electricity access in urban areas.

•         Deeper regional co-operation and integration, facilitating new large-scale generation and transmission projects and enabling a further expansion in cross-border trade.

•         Better management of energy resources and revenues, adopting robust and transparent processes that allow for more effective use of oil and gas revenues.

As well as boosting economic growth, these actions bring electricity to an additional 230 million people by 2040. They result in more oil and gas projects going ahead and a higher share of the resulting government revenues being reinvested in key infrastructure. More regional electricity supply and transmission projects also advance, helping to keep down the average cost of supply. But the report warns that these actions must be accompanied by broad governance reforms if they are to put sub Saharan Africa on a more rapid path to a modern, integrated energy system for all.

Distributed by APO (African Press Organization) on behalf of the International Energy Agency (IEA).

Africa speaks energy

JOHANNESBURG, South-Africa, February 18, 2014 - African energy leaders see global climate framework uncertainty, high energy prices, and commodity prices as the critical issues driving Africa’s energy agenda this year, according to the 2014 World Energy Issues Monitor, released by World Energy Council (WEC).

The African views are in contrast with the global view, where high energy price volatility has for the first time replaced climate framework as the top critical uncertainty.

Bonang Mohale, WEC Vice-Chair Africa, commented at the report launch at the Africa Energy Indaba:

“Our African survey finds that, in contrast with the global findings, climate framework has become an even more critical issue. Africa is dramatically vulnerable to climate change, and Africans are becoming more aware that climate change is an urgent and real issue rather than something that only countries with large emissions should worry about.”

In Africa, electricity supply remains a critical concern, with growing demand, lack of required investment, and increasing power shortages across the continent.  Renewable energy remains a high-priority issue.

As a change from last year’s findings, African national governments and regional institutions are taking actions in energy efficiency and regional interconnection, while investment cooperation with China and India is viewed with increasing importance.

The report captures the views of over 800 energy leaders including ministers, chief executives and the heads of the WEC’s national members committees covering 84 countries. 

In its global findings, climate framework uncertainty is now perceived by energy leaders to have less impact than in the previous three years of the study.  Meanwhile, carbon capture, utilisation and storage (CCUS) continues to be viewed as a technology having limited impact. 

Energy leaders are also increasingly concerned about the sector’s ability to access the capital markets for funds towards energy infrastructure, when set against a continued recessionary backdrop.

Christoph Frei, WEC Secretary General, said:

“The fact that both climate framework and CCUS are perceived to be issues of less impact is bad news not only in terms of emissions mitigation, but also for the development of robust and resilient energy infrastructure.  Our energy systems are in a state of massive expansion and transition, and the signals we see today provide clear evidence of the urgent need for more robust, coherent, long-term frameworks for planning our future investment.”

MULK OGI - Oasis Gulf Investment, FZC wins Multimillion USD contract in Sierra Leone

The Solar Park in Freetown, with a capacity of 6 MW, will be one of West Africa’s largest solar parks

FREETOWN, Sierra Leone, February 3, 2014 - Mulk OGI - Oasis Gulf Investment, FZC, a company of the Sharjah-based diversified conglomerate affiliated to Mulk Holdings, has recently won a multimillion USD contract to provide Engineering, Procurement and Construction (EPC) expertise for the pioneering USD 18 million project, based in Freetown, Sierra Leone, and to become one of West Africa’s largest solar parks.

  (This picture shows the size of 6MW Solar Park – which is the same size as the future Solar Park Freetown)

The EPC part of the project will be spear headed by Mr. Khurram Nawab founder of MULK Renewable Energy and inventor of its broad and innovative patented Solar Technologies portfolio. The Solar PV panels will be sourced through a partnership with Masdar PV, a 100% subsidiary of Masdar, Abu Dhabi’s multifaceted initiative for innovative renewable energy technologies, launched and owned by Mubadala Development Company.

(The Solar Park in Freetown, with a capacity of 6 MW, will be one of West Africa’s largest solar parks)

The Solar Park in Freetown, with a capacity of 6 MW, has been selected from over 80 competitive project applications and countries for the first funding cycle of the prestigious International Renewable Energy (IRENA/ADFD) project facility. All the selected projects contribute towards helping address energy security, improving energy access as well as creating a broad socio-economic impact. Further, each project will inspire and enhance the development of renewable energy projects across the globe.

The proposal and implementation of the project in Sierra Leone is going to be carried out by an AED 2 Billion consortium coordinated and initiated by Mr. Bahige Annan – The Consul General of Sierra Leone in Dubai, UAE and IRENA Focal Point, Mr. Siray Timbo - Special Envoy of The President of the Republic of Sierra Leone and Mr. Filip Matwin, General Manager of Advanced Science and Innovation Company (ASIC) LLC, who will also act as the manager of the overall project.

“I feel glad that our effort to get this clean energy project to the forefront has been successful. From the start, I have been constantly driven to change this thought into reality and now I’m definite thatwith our joint technology expertise and support of The Ministry of Energy of Sierra Leone andAdvanced Science and Innovation Company(ASIC), we will be able to successfully deliver thislandmark project in the best possible way” says Mr. Bahige Annan.

The solar park will produce sufficient energy so as to provide electricity to approximately 3000 households on average in Sierra Leone. The overall performance complies with 8.5% of Sierra Leone’s total energy consumption and ensures the supply of energy on a more renewable, affordable and sustainable basis in the future. The goal is to achieve 25% of the country's energy generation from renewable sources by the year 2015.

Mr. Nawab Shaji Ul Mulk, the Founder and Chairman of Mulk OGI - Oasis Gulf Investment, FZC and Mulk Holdings says, “This venture is a big step towards helping us strengthen our base further in the African market and at the same time it has given us a great opportunity to implement our in house patented solar technology in the PV space.”