‘The perfect ingredients’: WRI Africa deputy director shares vision for the continent’s energy transition – Mongabay

Report on Africa’s Just Energy Transition and Alignment with Sustainable Development Goals

1.0 Executive Summary

This report analyzes the strategy for achieving universal energy access in Africa, focusing on a systems-level approach that integrates economic development with the expansion of renewable energy. The primary challenge is not technological but the creation of commercially viable models that support both household and industrial needs. Achieving Sustainable Development Goal 7 (Affordable and Clean Energy) is contingent upon a holistic strategy that simultaneously advances SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure). The report outlines the necessity of shifting focus from subsidized household access to developing productive economic sectors that can anchor and sustain a continent-wide energy infrastructure, thereby ensuring a just and sustainable transition.

2.0 The State of Energy Access in Africa and SDG Implications

The current energy landscape in Africa presents a significant barrier to sustainable development. A comprehensive understanding of the situation reveals several key challenges directly impacting the SDGs.

• Energy Poverty: Approximately 600 million people, or 40% of the continent’s population, lack basic access to electricity. This directly impedes progress on SDG 7 and exacerbates inequalities addressed in SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).
• Inadequate Infrastructure for Essential Services: Existing power access is often insufficient for high-intensity needs of critical public services such as schools, hospitals, and water treatment facilities, undermining SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), and SDG 6 (Clean Water and Sanitation).
• Climate Justice and Resilience: African nations have contributed minimally to global carbon emissions yet face severe impacts of climate change. A just energy transition must prioritize clean energy to build resilience and support SDG 13 (Climate Action) without introducing fossil fuel dependency.

3.0 A Systems-Level Approach for a Commercially Viable Transition

A paradigm shift is required, moving from a narrow focus on household energy to a broader, systems-wide economic strategy. This approach is essential for creating the commercial viability needed to attract investment and ensure long-term sustainability.

3.1 Integrating Productive Use to Achieve SDG 7

The core of the proposed strategy is to solve the energy access challenge by first addressing the productivity challenge. This model creates a virtuous cycle that supports multiple development goals.

1. Develop Anchor Clients: By prioritizing energy for industry, manufacturing, and commerce, large-scale, reliable “anchor” clients are established. These clients provide a stable revenue stream for energy providers.
2. Subsidize Household Access: The premium rates paid by industrial and commercial users can subsidize the cost of electricity for households, making universal access economically feasible and aligning with the affordability target of SDG 7.1.
3. Stimulate Local Economies: This whole-systems approach fosters local job creation and economic opportunities, directly contributing to SDG 8 (Decent Work and Economic Growth).

4.0 Overcoming Financial and Investment Barriers

Significant financial hurdles impede the rapid expansion of Africa’s energy infrastructure. Addressing these requires innovative models and international cooperation, reflecting the spirit of SDG 17 (Partnerships for the Goals).

4.1 The Investment Challenge

A “chicken-and-egg” dilemma exists where a lack of energy infrastructure deters industrial investment, while the absence of industrial demand makes energy projects financially risky. Furthermore, the high upfront costs of renewable energy projects are difficult to meet without guaranteed off-takers.

4.2 Proposed Financial Solutions

• Value Chain Investment Models: Presenting investors with a complete value chain—from energy generation and technology to end-users in productive sectors—has proven successful in attracting private capital. This de-risks investment and clarifies the path to profitability.
• International Financial Reform: A significant portion of public finances in African countries is allocated to debt repayment, limiting funds for critical infrastructure. Reforms to the international financial system are necessary to create more fiscal space, allowing nations to invest in SDG-aligned priorities like clean energy.
• Effective Use of Concessional Finance: Ensuring that low-interest resources designated for clean energy are leveraged to their maximum potential is critical for catalyzing larger flows of private investment.

5.0 Africa’s Potential for a Low-Carbon, Sustainable Future

The continent is uniquely positioned to lead in building sustainable, shock-resistant economies based on green principles. This vision aligns with a low-carbon development pathway that can be maintained as energy access expands.

5.1 Key Continental Assets

• Abundant Renewable Resources: Africa possesses world-class solar, wind, geothermal, and hydro resources, providing the foundation for achieving SDG 7 and SDG 13.
• Natural Capital: With the second-largest tropical rainforest, over 50% of the world’s arable land, and vast areas of restorable land, the continent can pioneer sustainable agriculture and landscape restoration, supporting SDG 15 (Life on Land).
• Mineral Wealth: Holding a third of the world’s mineral stocks, Africa is critical to the supply chains for green technologies.
• Human Capital: With 10 million young people entering the job market annually, Africa’s youth represent a significant demographic dividend that, if harnessed, can drive innovation and economic growth in line with SDG 8.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  This is the central theme of the article. The text explicitly discusses the lack of basic electricity access for 600 million people in Africa and the need for a “just energy transition” focused on renewable sources like solar, wind, geothermal, and hydro power. The entire conversation revolves around strategies to achieve universal, reliable, and sustainable energy access.

• SDG 8: Decent Work and Economic Growth

  The article argues that solving the energy access problem requires a “whole-systems approach” that includes investing in manufacturing, commerce, and industry. This strategy aims to create “economic opportunity at a very local level,” build “thriving, shock-resistant economies,” and provide jobs for the “10 million young people pouring onto the job market every year.” This directly addresses the goal of promoting sustained, inclusive, and sustainable economic growth and productive employment.

• SDG 9: Industry, Innovation, and Infrastructure

  The discussion emphasizes that energy infrastructure is crucial for attracting large industry and commerce. The vision described includes building “green manufacturing, green mobility and green infrastructure.” This aligns with SDG 9’s aim to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.

• SDG 13: Climate Action

  The article frames the energy transition within the context of climate change, noting that Africa has contributed little to the problem but suffers disproportionately from its impacts. It highlights the importance of expanding energy capacity in a “climate compatible” way, maintaining a “low-carbon philosophy,” and avoiding dependence on fossil fuels, which are core tenets of climate action.

• SDG 17: Partnerships for the Goals

  The article heavily discusses the financial barriers to achieving energy access, including the need to attract “international financiers” and “private investors.” It points to the challenge of international debt, where “public finances are tied up in repaying debt,” and calls for “international financial reforms.” This directly relates to strengthening the means of implementation and revitalizing global partnerships for sustainable development, particularly around finance and investment.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.

   The article’s primary focus is on the “600 million-plus persons [who] still don’t have access” to basic electricity. The entire discussion is about the strategies and challenges of achieving universal access for households, schools, and hospitals.

2. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The article advocates for greater investments in renewables to capitalize on Africa’s “abundant wind, geothermal, hydro and solar resources.” It notes that many African countries already rely on low-carbon technologies and that the goal is to expand energy generation while staying on a low-carbon path.

3. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   The strategy proposed by Rebekah Shirley is to solve the “productivity challenge” by investing in manufacturing and industry. This is seen as the key to making energy access commercially viable and creating a self-supporting economic model, which aligns with increasing economic productivity.

4. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and processes.

   The article explicitly mentions a vision for “green manufacturing, green mobility and green infrastructure.” This directly corresponds to the goal of making industries and infrastructure more sustainable and reliant on clean technologies.

5. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.

   The text highlights the challenge of creating “organic flows of finance into the continent” and the need to “unlock barriers for private investors.” The work of WRI in Kenya to create investment prospectuses is a direct example of mobilizing financial resources from new sources.

6. Target 17.4: Assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress.

   The article points out that “public investments are very scarce because public finances are tied up in repaying debt” and that African countries “owe over a quarter of their combined GDP in debt.” The call to redress the international financial system to give countries more flexibility beyond debt repayment directly addresses this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for Target 7.1: Proportion of population with access to electricity.

  The article explicitly states that “600 million people” in Africa lack basic access to electricity, which is a direct measure for this indicator. Progress would be measured by the reduction of this number.

• Indicator for Target 7.2: Renewable energy share in the total final energy consumption.

  The article provides specific data points that serve as examples of this indicator, stating that Kenya is “producing 90% of its electricity from renewables” and Ghana gets “40% [of their electricity from] renewable sources.” These percentages are direct measures of progress.

• Indicator for Target 8.1: Annual growth rate of real GDP per capita.

  While not providing a specific number, the article implies this indicator by focusing on building “thriving, shock-resistant economies” and solving the “productivity challenge” through industrialization. Growth in these areas would be reflected in GDP figures.

• Indicator for Target 17.4: Debt service as a proportion of exports of goods and services.

  The article provides a clear data point related to this indicator by stating that “African countries owe over a quarter of their combined GDP in debt to external parties.” This highlights the high level of debt distress, which this indicator is designed to measure.

4. Summary Table of SDGs, Targets, and Indicators

Source: news.mongabay.com