Africa Has Only 20% of Financing for Energy-Deficient Nations
(Bloomberg) -- Sub-Saharan Africa still receives woefully little of the financing needed to provide residential electricity despite having the most people without access to power, according to Sustainable Energy for All.
While the region accounts for 70% of people living in high energy-deficit countries, 14 of its least powered nations received less than a fifth of the $43.6 billion in electricity financing to so-called high impact countries in 2018, the Vienna, Austria-based agency said Thursday in a report covering investment during 2013-18.
In Burkina Faso, Chad, Democratic Republic of Congo, Madagascar, Malawi and Niger, less than three in 10 people have access to power, the agency said.
“Energy investments are highly concentrated; they not going to the countries with the greatest needs or to the right solutions, and therefore are not addressing the most urgent sustainable energy gaps,” it said.
Even though about $41 billion in annual investment is required to provide residential electricity for everyone globally by 2030, only $16 billion was available in 2018, SEforAll said. Fossil fuels took up the bulk of electricity finance for the first time in at least six years, with $21.7 billion from $5.5 billion in 2017. Investment in mini-grids and off-grid electricity attracted less than 1.5% of total electrification finance tracked.
“With current policies and financing levels, 620 million people could remain without access to electricity and 2.3 billion without clean cooking solutions in 2030,” SEforAll said.
©2020 Bloomberg L.P.