Tech

Wood Mackenzie’s report says Sub-Saharan Africa needs $350 billion investment for improved electricity

Published

2 years ago

March 20, 2022

A new report by Wood Mackenzie Ltd says Sub-Saharan Africa would need an investment of $350 billion between now and 2030, to be able to improve electricity generation/distribution and potentially solve the region’s long-standing electricity access problem.

The report, titled “Utility evolution in Africa to reshape global electricity demand” was released on Thursday (17th March) by the UK-based energy and consultancy group.

“These investment opportunities work around the fiscal and operational bottlenecks posed by some of Sub-Saharan Africa’s state utilities. Service providers are going straight to the bankable segments of residential, commercial, and industrial electricity demand, typically through distributed, renewable, off-grid solutions where the public utility does not feature.” The report says.

Wood Mackenzie Ltd is a global research and consultancy firm with over 50 years of practice. Wood Mackenzie partners organisations and governments to inspire better decision-making with a focus on oil, gas & LNG, power & renewables, chemicals, and metals & mining sector teams located around the world.

According to research, the number of people in the region with access to electricity has grown dramatically over the past decade, but about 600 million remain without power. To meet a United Nations goal of universal access by 2030, further progress is needed not only in grid link-ups but in off-grid systems using sources such as solar energy.

United Nations says “The number of people without access to electricity fell to around 1 billion in 2016 from 1.7 billion in 2000. The number of people gaining access to electricity each year is accelerating, thanks to strong successes in some countries, including Bangladesh, Ethiopia, India, Kenya, and Tanzania. Grid electrification has been the source of almost all energy access gained since 2000 and is likely to remain the most favourable option for many households, especially in more densely populated areas”

But Sub-Saharan Africa has been bedevilled with cases of grid collapse. Just last week in Nigeria, distribution companies announced the collapse of the country’s national grid amidst a nationwide blackout said “We would like to inform you of another system collapse on the National Grid which occurred at 5:10 pm today. We are monitoring the situation and will continue to provide updates.”

Dear esteemed customer, we regret to inform you of a total system collapse on the national grid at 10:40 am today, leading to outages across our network. We are closely monitoring the situation with our TCN partners to determine the cause and a timeline for resolution.

— Eko Electricity Distribution Company (@EKEDP) March 14, 2022

The electricity situation in Sub-Saharan Africa has been epileptic with Nigeria leading the race. Power in Nigeria has been in its worst moment since the past months as generation capacity dropped to 2,000 megawatts with about 14 power plants shutting down. Nigeria’s centralized electricity model have not yielded much for the West African country.

“Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future but carry important lessons for the next generation of thinking on utility business models globally,” Benjamin Attia, an analyst at WoodMac, said

Electricity demand in Sub-Saharan Africa has doubled over the past 15 years and is expected to increase nearly eight-fold by 2050. The report by Wood Mackenzie said the growing demand is driven by these three fundamental-urbanization trends: population growth, rapid urbanisation, and structural economic transformation.

The report further attributed Africa’s long-standing electricity access problem to massive underinvestment in the region’s electricity infrastructure. It said with the right investments, Sub-Saharan Africa could potentially change the trajectory of electricity demand and supply, not only within the region but globally.

Now, the interesting part is that the declining costs of renewable energy, coupled with innovative business models, could make it easier to bridge the investment gap and provide reliable and affordable energy access across the region.

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Tech

US collaborates with AfDB to accelerate Africa’s digital transformation

Published

17 hours ago

November 28, 2023

Akanimoh Etim

The United States Commercial Service has announced a strategic collaboration with the African Development Bank (AfDB) to drive a massive digital transformation across Africa.

The partnership, which was unveiled on the sidelines of the Africa Tech Festival in Cape Town, South Africa, will open the door to a series of dialogues on how U.S. digital innovation can support development goals across Africa.

Senior U.S. Commercial Liaison to the African Development Bank, Ashley Ndir, who announced the collaboration, said further discussions would focus on key themes such as embracing new technologies, improving internet access, enhancing skills, and creating a regulatory environment conducive to innovation.

“Both parties will explore how African governments can collaborate with American technology firms to grow their economies and how U.S. businesses can tap into new opportunities in Africa’s emerging markets.

“We are at a turning point in Africa’s technological advancement. By bridging insights from the U.S. private sector with Africa’s vibrant markets, we aim to drive innovation and economic growth. This partnership is a testament to that mission”, Nadir said.

“Africa has made significant investments in pivotal infrastructure and policy enhancements to create an innovative digital economy,” Head of ICT Operations at the AfDB, Nicholas Williams, also enthused.

“As Africa’s premier development finance institution, the African Development Bank will help push Africa’s digital boundaries even further by forging strategic relations, building on historical investments and, more importantly, tapping into the energy of our young population, who are digital natives. We value the insights that the U.S. private sector may bring”, he added.

Tech

5,300 African entrepreneurs graduate from Google’s Hustle Academy

Published

2 days ago

November 27, 2023

Akanimoh Etim

The Google’s Hustle Academy which was launched in 2022 to empower budding African entrepreneurs has graduated 5,300 small and medium-sized businesses (SMBs) from across countries like Nigeria, South Africa and Kenya.

The Google Hustle Academy, since coming on board, has empowered over 10,000 entrepreneurs across Africa, with more than 3,000 of the SMBs coming from Kenya, according to Google Country Director for East Africa, Agnes Gathaiya.

At the graduation ceremony on Monday in Nairobi, Gathaiya noted that the Hustle Academy programme focused on addressing the challenges faced by African SMBs and provided practical skills and resources essential for business growth.

“In the Academy, business owners undergo five days of hands-on training and receive 3,000 hours of training on fundamental aspects of business to help them navigate the challenges faced by SMEs in Africa,” she said.

“The training curriculum includes strategic growth sessions including business growth strategy, building digital marketing roadmaps, discovering and evaluating funding routes and how to pitch for success among other topics.

“This year’s cohort builds upon the foundation of the more than 5,000 SMBs who graduated last year. The graduates represent a wide range of industries, demonstrating the diverse and dynamic nature of African entrepreneurship.

“These businesses, through their participation in the Hustle Academy, have shown a remarkable capacity for innovation and resilience. The determination and growth exhibited by these SMBs are commendable,” Gathaiya added.

“The Hustle Academy program stands as a beacon of what practical training and resource provision can accomplish. Today’s graduation is not only a celebration of their hard work but also an acknowledgment of their role in enriching the African business environment.

“Through a variety of programs, products, and partnerships, small and medium-sized businesses (SMBs) in Africa are receiving substantial support, helping them navigate the challenges of the modern business world. Programs like the Hustle Academy are part of Google’s broader commitment to bolster the African business sector” she further revealed.