Skip to main content

Energy Crisis: Cause of Africa’s Underdevelopment


It is no longer news that African continent is the most underdeveloped continent on earth where people are living. Many African leaders and the citizens knows and have given lips services to the situation without any meaningful development.

Why did Africa remain poor? Diseases, civil war, the legacy of colonialism, famine – all have been applause as the reasons for the continent’s grinding poverty and economic backwardness. But another factor most often forgotten probably related in some ways to others, plays a fundamental role in stifling development is lack of modern energy sources.

Africa’s enormous energy potentials remains vastly under-exploited. While almost half of Africa’s 53 countries could profitably produced hydropower, only 8% of this potential is reached because of poor infrastructure and the high cost of initial investments.

Furthermore, despite its large geothermal and solar energy potential, Africa accounts for only 1.5% of the world’s installed solar facilities, and only four countries have started exploiting underground heat sources. Of the fossil energy sources – primarily oil that African countries do exploit, only a quarter is consumed locally.

Limited energy development in Africa has resulted in one of the lowest uses of modern energy sources in the world. More than three quarters of sub-Saharan Africans have no access to electricity, compared to fewer than 14% of Latin Americans and East Asians. As a result, most Africans use biomass (animal and vegetable wastes and firewood) for lighting, cooking, and heating.

Families in rural and semi-rural areas often have no choice but to exploit what they perceive as a ‘free’ energy source. However, as populations grow and the need for energy increases, fragile ecosystems are threatened. Replacing biomass sources by less destructive energy supplies has thus become increasingly urgent.

Clearly, African countries, assisted by their development partners, need to develop the continent’s enormous energy potential as an integral part of their efforts to spur economic growth and reduce poverty. Improvements in energy supplies have multiple beneficial effects. Public and home lighting, refrigeration of food, medicine and vaccines, and heating and proper sanitation help improve people’s living conditions and health. More and higher quality energy increases production through modernized communications, improved productivity, and a better business environment.

A secure energy supply, moreover, greatly extends learning possibilities and improves access to information. More informed citizens, in turn, participate at a higher rate and to a greater degree in their country’s decision-making processes. Thus, institutions are rendered more democratic and government becomes more transparent and responsible.

Some countries have sought to bridge the gap between their energy potential and their populations’ lack of access to energy. In a few countries, private-sector participation in electricity companies, coupled with new independent regulators, has resulted in greater and more efficient power generation and higher employment, while doubling the number of subscribers.

Electrification for the rural poor has improved in South Africa and Ghana through the creation of independent agencies in charge of implementing rural electrification plans. Similar policies need to be adopted by a greater number of countries to enable them to address their energy challenges in a more effective way.

More attention should also be given to regional and international power initiatives, which can help smooth out the uneven distribution of energy resources across countries. Such reforms have the potential of benefiting consumers by lowering costs and improving the reliability and quality of services. An integrated, continent-wide energy strategy linked to national policies for growth would, indeed, go a long way toward addressing this important need. One vehicle for promoting such an approach could be the New Partnership for Africa’s Development (NEPAD).

According to African Economic Outlook, it is generally acknowledged that average growth rates of around 6-8% are required if Africa is to make real headway in curtailing poverty. More intensive use of Africa’s energy resources will necessarily be a critical component of any realistic development strategy.

As Africa looks to the future, developing its enormous energy resources – through both national and regional efforts, must be given high priority. Indeed, boosting its energy capacity will be critical to unleashing the continent’s economic and human potential.

Comments

Popular posts from this blog

Performance Measurement and Reward System

As the global war for talent grows increasingly fierce, management of people is a key concern among organisations.  Once thought primarily in terms of cost, people in successful companies are being valued as rich sources of talent, skill and diversity, which are critical to the success of the organisation. Managers have identified the shortage of skills as one of the main threat to prospect of growth; they are devoting a greater share of resources to protecting themselves.  For this reason, the role of human resource in an organisation has been and continues to be scrutinized in terms of how it can add most value with the rest of the organisation, helping to overcome the challenges adherent in the people agenda. In defining performance measurement, Dessler states that it “means evaluating an employee’s current or past performance relative to the person’s performance standards”.  This entails evaluation or assessment of the actual p...

INTERNAL PROMOTION AND SUCCESSION PLANNING

Promotion comes as a result of ones performance on the job over a period of time, or it could be said to be an advancement in ones profession. Succession on the other hand is a shift in position as a result of promotion, transfer, retirement or death of others. It could be as well a change in policy of an organisation leading to reorganisation of operations and human resources. Getting succession right is vital. There are two approaches that can be used at different times to ensure success. The internal selection approach advocates choosing successors from within, to ensure a smooth transition, preserve company values, and encourage employees by showing a potential career path. Most organisations struggle with how to turn succession into success. It is necessary to use either internal selection or the Darwinian approach at different levels or at different times. For example, a high percentage (80%) of senior roles may be internally appointed, while junior roles are sel...

Future Trends and Techniques in Segmentation

Segmentation consists of group of buyers or a process of identifying groups of buyers who share similar set of need and wants.  It is the breakdown of the market for a particular product or service into segments of customers, which differs in terms of needs, wants, lifestyle, religion, income level, gender, buying process etc, and their response to marketing strategies. Today’s organisations need fresh thinking on how to operate and compete in the new economy characterised by hypercompetition, customization and digitalisation. An organisation cannot serve all the consumers in the entire market, the consumers are too many and are too diverse in their buying process.  An organisation therefore, needs to identify the market segment(s) it can best serve. Organisations been aware of these facts has been segmenting their products offerings to target a particular segment(s) of the market rather than using the old method of mass-marketing.  ...