Energy and the Millennium Development Goals in Africa

This report looks at the current status of energy in Africa, analyzes the current trends, and proposes strategic options to increase energy access. The level of investments required to provide the infrastructure needs for achieving the Millennium Development Goals (MDGs) to transform the energy sector in Africa, has been estimated to cost about US$20 billion per year. Financing options have been proposed, which African Governments should closely consider to meet this financing challenge, along with ways of lowering the costs. To meet this challenge, the energy Ministers of Africa agreed to form the Forum of Energy Ministers of Africa - FEMA - whose main objective is to assist African States and Sub-regional Organizations contribute to the achievements of the MDGs, by increasing the level of access to modern fuels and other energy services. Achieving the energy targets will require major strategic shifts to ensure that the needs of the poor are satisfied, as well as improving the overall net productivity of African nations so as to meet and sustain the MDGs. The energy options for transforming most African countries from their survival stage, to that of development, and eliminating extreme poverty, as well as creating wealth, fall into three categories, namely: options for ensuring macro-economic growth stability; options for providing targeted energy services for the poor in urban and peri-urban areas; and, options for energizing rural areas. Increasing its provision of modern fuels by fully exploiting its indigenous energy resources in an environmentally sound, and economically optimal strategy will go a long way to contributing towards meeting the MDGs in Africa. However, implementing all the suggested options which have been demonstrated elsewhere, will require detailed studies of the sub-regional and country circumstances. The energy benchmarks suggested are equally challenging, but by using the policies and measures advocated, the task will be minimized.