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OECD DEVELOPMENT CENTRE www.oecd.org/dev/insights Policy Insights No. 8 Policy Insights Energy and Poverty in Africa by Céline Kauffmann Policy Insights No. 8 is derived from the African Economic Outlook 2003/2004, a joint publication of the African Development Bank and the OECD Development Centre www.oecd.org/dev/africanoutlook Access to energy is essential for economic, social and political development. It encourages individual development via an improvement in educational and sanitary conditions. It makes economic development possible through the mechanisation and modernisation of communications. It plays a role in improving the economic environment by opening the way to more efficient public sector intervention, greater respect for the environment and a strengthening of democracy. Despite its enormous potential in fossil and renewable energy sources, however, Africa suffers from major energy deficits. The continent’s resources are under- exploited or exported in raw form or wasted in the course of extraction or transport. As a result, supplies available for local populations are largely insufficient and energy consumption is essentially reliant on biomass. Renewable energy sources are numerous in Africa. The hydraulic basins of central Africa, the Rift Valley fault and the sunshine from which the continent in general benefits provide sources of hydraulic, geothermal and solar energy which are rarely equalled elsewhere in the world. At present, however, only a tiny part of this potential is exploited: 7 per cent of hydraulic capacity and less than 1 per cent of geothermal capacity, while photovoltaic development is embryonic. Fossil energy is exploited more intensively than renewable energy in Africa, but domestic consumption remains extremely limited. Three quarters of the continent’s oil production is destined for export. When they are not under-exploited or exported, the continent’s energy resources are wasted, as is the case, notably, of gas, because of largely deficient infrastructures. All African countries are not in the same situation, however. The continent’s energy resources are divided into distinct zones. Oil and gas are essentially located in North Africa and in countries bordering on the Gulf of Guinea; Southern Africa possesses virtually all the continent’s coal potential; geothermal capacities are concentrated in East Africa and hydraulic basins in Central Africa; sunshine is strongest in the Sahel countries. Coupled with this heterogeneity of potential, exploitation capacities also vary largely. North Africa has less wastage in gas and oil exploitation than Gulf of Guinea countries. It also has greater refinery capacity than its sub-Saharan African neighbours. In this way, half of locally produced oil figures in available supply, compared with 11 per cent for Nigeria, 7.5 per cent for Central African countries and barely 5 per cent for Angola. In the absence of satisfactory supply, energy consumption per inhabitant is very low in Africa. The average is 0.5 tonnes oil equivalent per inhabitant, compared with 1.2 tonnes worldwide. Consumption is composed essentially of exploitation of biomass, oil products and electricity, a secondary energy source produced by fossil and renewable energy sources. Modern energy sources — oil products and electrical energy – are essentially destined for industrial use and transport, however. Domestic energy consumption in Africa, therefore, consists largely of biomass use. Wood and its derivatives constitute the energy source most used by African households, especially in the countryside, by virtue of their availability and the absence of private property rights over forest resources, which make them a virtually free resource at individual level. The availability A Vast Energy Potential...Largely Unexploited Very Low Consumption, Dominated by the Use of Biomass Policy Insights #8, ©OECD 2005PDF Image | Energy and Poverty in Africa
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