Africa still needs time – time that the Western world has already had and, frankly continues to milk – to resolve energy poverty and industrialise

Voices from Africa about the continent being penalised in the global energy transition journey are getting louder with those concerned urging that a fair chance be given to them to resolve energy poverty and industrialise before giving up fossil fuel.

Some 600 million people on the continent still lack adequate electricity access or even clean cooking technologies.

These people aren’t focused on the fact that reliable energy infrastructure facilitates economic growth by generating jobs, increasing productivity, and reducing the cost of doing business. Most would be elated just to have light in their homes after dark or the ability to refrigerate their food.

This energy poverty impedes nearly every aspect of life for this population, from conducting business and educating their children to deterring crime and providing healthcare.

Even in some well-electrified African nations such as Ghana, Gabon, and South Africa, the supply is inadequate and often unavailable.

There is compelling evidence to back this statement, with statistics showing that among other things, energy poverty is markedly deeper in sub-Saharan Africa (SSA) than in the rest of the continent.

Even as Africa works to support global efforts to prevent a climate crisis, it must embrace every solution available to it, including using its vast natural gas reserves: totaling more than 800 trillion cu ft.

Not only is gas plentiful, but it’s also the cleanest fossil fuel; producing it contributes to job creation and economic growth; and it can be monetised to help pay for energy infrastructure.

Natural gas as an essential resource for Africa that should not be restricted in foreign trade. Therefore, Africa still needs to use its natural gas, and more of it, to deliver a much-needed increased supply of energy to its people.

However, by introducing general punitive measures that also affect developing countries, developed countries are "shifting the goal post" in the differentiated responsibility within the Paris Agreement by forcing developing countries to attain net-zero carbon emissions much earlier than stipulated.

Recently, the European Union (EU) launched the initial phase of a Europe-wide carbon tax on imported goods as part of its climate change reduction measures

Dr Akinwumi Adesina, President of the African Development Bank Group, said this could penalise African countries.

He warned that the introduction of a carbon border tax by the European Union could push Africa back into exporting raw commodities and undermine its industrialisation gains.

"Africa is going to lose $25 billion annually," Adesina said. "Africa deserves a carve-out on that (taxation) because we are financing Africa’s transition. You cannot industrialise just by renewables; you need a balanced energy mix that allows you to use your natural gas to be able to industrialise."

He added: "African companies that are making cement, steel, aluminium, fertilisers and trying to export to Europe are going to be charged a border tax of 80 euros per tonne. That is very expensive, and all that is going to do is that countries in Africa that already suffer from tariff escalation when they add value to what they produce, now you are forcing them down the value chain."

AFRICA’S SHARE OF GLOBAL EMISSIONS

When it comes to global emissions, Africa is not the problem.

In 2021, when global CO2 emissions hit 37.12 billion tonnes, and China ranked first in contributing 11.47 billion tonnes, the entire continent of Africa contributed 1.45 billion tonnes – only 4 per cent of global carbon emissions.

In fact, over the last two decades, Africa’s total contribution to global greenhouse gas emissions has never been above 4 per cent – by far the smallest share in all the world.

Africa has the lowest per-capital emissions of all continents, averaging 1 ton of CO2 emitted annually by each individual. The average American emits as much CO2 in one month as the average African does in an entire year.

"And yet, Africa is disproportionately being punished for the climate catastrophe that, let’s be honest, was initiated and is perpetuated by Western and developed economies," says Ayuk.

Global emissions must peak in the next 10–15 years if the world is to have a good chance of holding global warming below 2 deg C, but Africa cannot and should not shoulder this burden.

Even if Africa were to triple its production of natural gas from current levels, its contribution to global emissions would only rise by 0.67 per cent.

USING ITS VAST RESOURCES

Africa has abundant energy potential. Its energy sector is growing annually at a rate of 5 per cent, driven by a population exceeding 1.2 billion people and featuring abundant natural resources, including oil, natural gas, coal, renewables, and uranium.

By 2050, the continent will be home to 11 per cent of the world’s liquefied natural gas (LNG) market and the second-highest growth supply of gas.

While challenges exist, such as untapped resources and infrastructure limitations, the continent is on the verge of a transformative period.

By tapping into the vast stores of natural gas at its feet, Africa can first work to eradicate energy poverty from the continent, and then secure its economic growth as it transitions toward renewables.

According to Mohamed Hamel Secretary General of the Gas Exporting Countries Forum (GECF), the argument that Africa should not develop its natural gas resources was "misguided."

"A prosperous Africa will be more capable to protect its environment. The right of Africa to develop its vast natural resources can be preserved, and its access to finance and technology, facilitated," he said.

While African nations would not be continuing oil and gas operations indefinitely, with no movement toward renewable energy sources, Africans should be setting the timetable for Africa’s transition.

Clearly, there is progress still to be made. Too many outsiders suggest that African leaders are being manipulated or influenced by greed when they work to foster oil and gas exploration and production in their countries.

Few seem to believe that, when countries establish and fine-tune local content laws, adapt investor-friendly fiscal regimes, and promote policy that protects human dignity, they are making reasoned, strategic moves to create better futures for their people.

The challenge lies in identifying sustainable and affordable energy sources to meet demand. Africa requires solutions within a realistic energy mix to maximise all natural resources and combat energy poverty.

Even so, urgent transformation is needed in Africa’s electricity sector. Encouraging alternatives such as shale gas could contribute minimally to global emissions.

The focus should be on diversifying, with gas complementing renewables to provide reliable electricity to the 600 million people who go without access.

TURNING THE PRESSURE INTO PARTNERSHIP

It’s through forging strong partnerships with global counterparts that countries in Africa can enhance infrastructure and spur economic opportunities.

Africa’s significant population growth, urbanisation, and industrialisation present a unique landscape for sustainable development. The energy sector, therefore, holds the key to addressing economic disparities and propelling Africa towards substantial growth.

Leveraging power of multilateral development banks (MDBs) will boost finance for climate change, adaptation

MDBs such as the African Development Bank are critical to providing solutions for Africa’s staggering debt burden and other development challenges, Adesina said. He highlighted the role of MDBs mobilisers of financing for developing countries.

‘We need to use the tools we have as we call for the reform of the global financial architecture. The multilateral financial institutions are going to be critical. The tools we have – Special Drawing Rights – need to be stretched,’ Adesina said, noting that Africa only received $33 billion out of $650 billion International Monetary Fund Special Drawing Rights (SDRs).

CONCLUSION

The stance of the African Energy Chamber (AEC) has been consistent

"Yes, African oil and gas-producing countries should and will do their part to support global emissions-reduction goals. Yes, the dangers of climate change should be taken seriously. However, we refuse to let the world set the timing for when Africa will ease up on oil and gas exploration and production," says NJ Ayuk, Executive Chairman, AEC.

He adds: "We are convinced that oil and gas production, when managed strategically, provides a pathway for economic growth and energy security, and we are determined to help Africa realise those benefits."

The world must understand that African countries cannot be on the same energy transition timeline as Western countries. Africa still needs time – time that the Western world has already had and, frankly continues to milk – to resolve energy poverty and industrialise.

By Abdulaziz Khattak