These numbers—some much too large, some much too small—have serious repercussions. Enhancing people’s chances and options starts with electricity. Access is essential for increasing economic activity and helps to improve human capital, which is an investment in a nation’s future potential.
Children cannot complete their education at night without electricity. Businesspeople are unable to trade with one another or obtain market information. Even worse, as the COVID-19 epidemic has so clearly demonstrated, a lack of energy restricts hospital and emergency services, putting patients at even greater risk and tainting priceless medications.
How will West and Central Africa be powered?
Accelerating the transition to universal energy access is crucial right now in order to fuel the continent’s economic change and encourage socioeconomic inclusion. Without consistent access to electricity, a nation’s social fabric may suffer, with those without it growing weary of inequality. Here are some audacious strategies that are needed to address the energy access challenge in the African continent.
One of the things can be done is to make utilities profitable. Many electricity suppliers in the area are cash-strapped and run infrastructure and a generation fleet that is outdated and in poor condition. As a result, they are unable to provide their consumers with electricity that is both dependable and economical, much alone provide electricity to those who currently have to rely on subpar alternatives to electricity. In Sub-Saharan Africa, less than half of the utilities make back their operating costs, which causes GDP losses of up to 4% in some nations.
Lowering the cost of supply is a requirement for increasing electricity access to those who are currently without it, typically lower-income and frequently remote households. This is accomplished by improving the performance of national utilities and greening their power generation mix.
West and Central African nations must go outside their boundaries in order to further link their national utilities and grids to other systems in the area. This is a crucial second point. Without effective regional trade, many nations would be largely dependent on a small number of energy supplies and polluting generation sources, necessitating the importation of fuel at volatile international oil prices.
Last but not least, political leaders will need to dedicate a lot of time and effort to obtaining universal access to power, especially when it comes to creating laws and rules that can draw reputable investments.