March 13, 2020 / 08:55 AM / By FDC Ltd / Header Image Credit: Business Daily
Africa has been in search of a solution to the persistent energy crisis. Funding from the World Bank, IMF and other multilateral financial institutions have helped in curbing this problem.
However, over 500 million persons are still living without electricity in the continent.
According to the International 11 Energy Agency (IEA) ample electricity supply can only be achieved through an annual investment of $120bn till 2040, which will boost manufacturing and services.
The possibility of this is quite feeble as the continent is largely dominated by developing countries that are battling to provide basic amenities for citizens.
In Sub-Saharan Africa (SSA), a notable demise in the power sector is the underutilization of utilities (transmission & distribution) in power plants, mostly driven by low investment and poor maintenance.
Therefore, to provide a lasting solution, strategic funding styles and sources - including private partnerships are to provide growth and development in power generation.
Furthermore, the drive towards power generation includes the need for sustainable and clean energy in Africa.
This is because Africa possesses great potential for solar power generation, but currently accounts for about 1 per cent of the globally installed capacity.
This shows an untapped potential in clean energy generation and further encourages the need for public-private partnership.