Energy Biz: $450 Billion Needed to Close Energy Gap in Sub-Saharan Africa

In a special report released recently as part of its annual World Energy Outlook, the International Energy Association stated that despite high-profile initiatives to invest and develop energy in Sub-Saharan Africa, there will still be more than half a billion people without power by 2040.

Currently, less than one-third of Africans have access to electricity. Over the next 25 years, that number is expected to increase significantly, with power available to as many as 960 million Africans by 2040. And yet, hundreds of millions of people, mostly in rural areas, will still be without power, the IEA estimates. This is despite initiatives like the United Nations' Sustainable Energy for All plan and the United States' Power Africa Initiative, which commits over $7 billion in funds and loan guarantees for investment and development of power in Sub-Saharan Africa.

Because of rapid growth in demand due to an expanding economy and population, the IEA posits that investments will need to top $450 billion to properly outfit the region with universal access to power in urban areas, provided that regulation, resource and revenue management, and governmental cooperation is also improved. It's a daunting task, but the IEA estimates that, if successful, African economy could be boosted 30% by 2040.
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