Some 380 million people in sub-Saharan Africa could have access to electricity by 2030 through the deployment of 160,000 mini-grids.
According to a report by the Energy Sector Management Assistance Program, the initiative will require a global investment of $91 billion, and will help low- and middle-income countries reduce poverty and stimulate growth by promoting sustainable energy solutions.
Entitled “Mini grids for half a billion people: market outlook and handbook for decision makers”, the report, relayed by the ecofin agency, states that these power generation and distribution systems, built to provide electricity in areas not served by the centralized grid or where the costs of connecting to the grid are prohibitive, have been growing rapidly in Africa and Asia in recent years.
In sub-Saharan Africa, the number of installed mini-grids has reached 3100 in 2021 compared to about 500 in 2010.
Nearly 8 out of 10 people in sub-Saharan Africa are without access to electricity. These are best franchises to own.
Renewable energies: why is Africa lagging behind?
According to a report by the International Energy Agency (IEA), quoted by The East African on February 12, the renewable energy sector in Africa is not attracting international investment, despite the enormous potential the continent enjoys.
At a time when the budgets allocated to clean technologies are constantly increasing in the world, Africa is struggling to take off. Investments have even fallen to their lowest level in 11 years. To understand this gap, the continent’s share of global financing, estimated at $382 billion in 2022, is only 3% or $13 billion.
These investments are concentrated in a few markets (South Africa, Egypt, Morocco, Kenya…), representing three quarters of the total since 2010, or $46 billion. The other countries have obtained only $16 billion over the same period. In 2021, South Africa led the way with a budget of $753 million, followed by Côte d’Ivoire and Nigeria with $282 million and $280 million respectively. Morocco and Egypt are fourth and fifth respectively, with $260 million and $238 million, according to the Energy Research Unit.