Africa Energy Outlook 2022

The Africa Energy Outlook 2022 at a glance

Africa in an evolving global context

• Today’s global energy crisis has underscored the urgency, as well as the benefits, of an accelerated scale‐up of cheaper and cleaner sources of energy.
• Africa is already facing more severe climate change than most other parts of the world, despite bearing the least responsibility for the problem.
• For all of these difficulties, the global clean energy transition holds new promise for Africa’s economic and social development.
• This Outlook explores a Sustainable Africa Scenario in which Africa rides these shifting tides to achieve all African energy‐related development goals on time and in full. Affordable energy for all Africans is the immediate and absolute priority
• Universal access to affordable electricity, achieved by 2030 in the Sustainable Africa Scenario, requires bringing connections to 90 million people a year, triple the rate of recent years.
• Achieving universal access to clean cooking fuels and technologies by 2030 requires shifting 130 million people away from dirty cooking fuels each year.
• The goal of universal access to modern energy calls for investment of USD 25 billion per year.

As Africa’s demand for modern energy grows, efficiency keeps it affordable

• Demand for energy services in Africa is set to grow rapidly; maintaining affordability remains an urgent priority.
• Efficiency helps temper demand growth, reduces fuel imports, strain on existing infrastructure and keeps consumer bills affordable.
• As Africa’s industry, commerce and agriculture expand, so too does the need for productive uses of energy.

Electricity will underpin Africa’s economic future, with solar leading the way

• Electricity is the backbone of Africa’s new energy systems, powered increasingly by renewables.
• Flexibility is key to integrating more variable renewables, with grid interconnections, hydropower and natural gas plants playing notable roles.

Gas and oil production focuses on meeting Africa’s own demand this decade

• Africa’s industrialisation relies in part on expanding natural gas use.
• Production of oil and gas remains important to African economic and social development, but the focus shifts to meeting domestic demand.
• Near‐term market opportunities must not distract from declining oil and gas export Revenues in the future.

Critical minerals present a major economic opportunity

• Africa’s vast resources of minerals that are critical for multiple clean energy technologies are set to create new export markets, but need to be managed well.

Africa can become a leading player in hydrogen made from renewables

• Africa has huge potential to produce hydrogen using its rich renewable resources.

People must be at the centre of Africa’s new energy economy

• Home‐grown energy industries can reduce imports, create jobs and build the local capital base.

Climate change calls for investment in adaptation

• Africa will remain a minor contributor to global emissions, yet it needs to do far more to adapt to climate risks than the rest of the world.
• Urgent action to adapt to climate change would reduce the severity of these economic effects but require much more investment.

Unlocking more finance remains key to Africa’s energy future

• Achieving Africa’s energy and climate goals means more than doubling energy investment this decade.
• Multilateral development banks must make increasing financial flows to Africa an absolute priority.
• Africa’s energy future requires stronger efforts on the ground that are backed by global support.