ARIA Commodities

Capital Markets

Navigating Energy Transition and Increasing Access to Electricity in Sub-Saharan Africa

February 9 2022 I Capital Markets

The global push which is the energy transition has the potential to leave some behind. According to the Mo Ibrahim Foundation, achieving a successful energy transition in Africa requires balancing the continent’s developmental needs with environmental goals. Growth needs to be ‘green’ and inclusive.

Africa's vast renewable energy potential remains largely untapped, presenting a significant opportunity for growth. However, this transition must be just and equitable, ensuring that energy access improves and socio-economic benefits are widely shared. Investments in renewable energy infrastructure, technology transfer, and capacity building are essential components of this transition strategy – to date, the huge energy transition spend deployed to date, has largely taken place in western industrialised economies.

Sub Saharan Africa Energy Deficits

In tandem with the energy transition, increasing access to electricity in Sub-Saharan Africa is a pressing priority. As highlighted by Brookings, nearly 600 million people in the region still lack access to reliable electricity. Addressing this gap is critical for economic development, education, and healthcare improvements. Innovative approaches, such as off-grid and mini-grid solutions, are proving effective in expanding access to remote and underserved areas. Moreover, leveraging public-private partnerships can mobilise the necessary funding and expertise to accelerate electrification efforts.

The intersection of these two themes – energy transition and electricity access – underscores the need for integrated policy frameworks. Sub-Saharan Africa’s unique context demands tailored solutions that promote sustainable energy while fostering inclusive economic growth. Policymakers must consider the diverse needs of the population, ensuring that energy solutions are both scalable and adaptable to varying local conditions. This approach will not only contribute to global climate goals but also drive regional prosperity and stability.

As ARIA continues to explore investment opportunities in what promise to be both economically and environmentally attractively, understanding the complexities and potential of Africa’s energy landscape remains paramount. Supporting initiatives that promote renewable energy and enhance electricity access underpins ARIA’s ‘Agent of Change’ commitment to promoting sustainable and impactful investments, whilst becoming a standard bearer for driving positive change across the continent.