This page is dedicated to provide some background information and statistics, even though statistics alone do not paint the whole picture, but it will give you a better understanding and relevance of the business opportunities on the African continent.
The world economy needs ever-increasing amounts of energy to sustain economic growth, raise living standards, and reduce poverty. But today’s trends in energy use are not sustainable. As the world’s population grows and economies become more industrialized, non-renewable energy sources will become scarcer and more costly. Data here on energy production, use, dependency, and efficiency are compiled by the World Bank from the International Energy Agency and the Carbon Dioxide Information Analysis Center. The need of Africa in Energy consumption has massively increased in the last decade, creating a great opportunity in the market for investors. When other parts of the world have little or no room for growth, Africa is growing almost in double digits, making the need for energy high and high each day.
The hydropower potential of the continent amounts to 13% of the world.
Africa is endowed with a diversity of energy resources unevenly located across the continent. They include relatively important reserves of oil, gas and coal that account for 9.4%, 7.9% and 5.54% respectively of the world total. The hydropower potential of the continent amounts to 13% of the world. In Africa, energy is produced mainly from biomass (47%), oil (24.8%), coal (16.5%), gas (10.4%), and other renewable sources, such as large and small hydro damps, solar, and geothermal sources (1.3%). The continent has abundant solar irradiation ranging from 5 to 7 kWh/m2, all year round, and it enjoys a relatively strong wind power potential in Northern, Southern and Eastern Africa. Finally, the continent has an estimated geothermal energy potential of 9,000 MW in the Rift Valley area in East Africa.
Energy consumption in Africa is largely dominated by combustible renewable resources (biomass, animal wastes, municipal and industrial wastes). Energy from biomass accounts for more than 30% of the energy consumed in Africa and more than 80% in many SSA countries.
Biomass constitutes the main energy resource for the large majority of African households for cooking, drying and space heating. While electricity access data varies widely depending on the reporting sources, IEA data reports average rates ranging from 70% to over 94% in Northern Africa, and 23% in sub-Saharan Africa, with large disparities between countries (for instance less than 4% in Uganda compared to 66% in South Africa or 100% in Mauritius), and between urban and rural areas, where in the latter, rates can be as low as 1%.