Last year, 1.2 billion people in the world lived without electricity, half of them in Sub-Saharan Africa. How can businesses help address the energy gap?
Both large and small businesses state that the lack of reliable and accessible power in Africa is a significant barrier. It limits their ability to expand as well as impacts healthcare and education outcomes which have long term implications for development on the continent.
Addressing the gap in power infrastructure is typically long and costly. It’s estimated that it will cost $10bn per year or 10 percent of the region’s GDP, to close the power infrastructure gap. This investment is critical to development on the continent and Africa’s growing youth population will increase its capacity to build infrastructure. As such, focusing investments on the power sector can help harness Africa’s economic potential.
As part of IGD’s Frontier 100 Forum in Cape Town, IGD and Business Fights Poverty launched a new report: “The New Africa-Closing Africa’s Energy Gap”. The report examines how various actors can promote investment in Africa’s power sector. Conversations with investors, development professionals, and industrial and individual consumers identify the tools needed to increase access to reliable power. Ultimately, a mix of regulatory reforms, resource management, and regional cooperation could create an environment that attracts investment and fosters development on the continent.
>Download the report “The New Africa-Closing Africa’s Energy Gap”
>Learn more about our work in Africa’s power sector
>Read more IGD reports