The energy challenge in Sub-Saharan Africa

Dr Edward George Head of Group Research, Ecobank

22 March 2016

5.63%

5.37%

5.67%

5.62%

5.05%

7.45%

5.74%5.79%

6.82%

6.94%

7.01%

8.02%

4.31%

4.58%3.61%

5.31%5.95%

6.63%

4.99%

2.47%

5.83%

>75%

50% - 75%

25% - 50%

<25%

Share of Population without access to electricity

Source: McKinsey

Africa’s power network is inadequate

5.3%Country Average GDP growth between 2015 - 2020

Africa Average GDP growth between 2015 - 2020

• Africa’s electrification rates are low – over 40% of Africans do not have access to electricity.

• Power shortfalls across the continent are in excess of 25% of the region’s electricity demand.

• Nigeria produces as much power as Greater London – but for a population >20 times the size.

• Nigeria’s off-grid generating capacity is over 20,000 MW, five times the national grid.

• At current growth rates, Africa’s electricity demand (per capita) will nearly double from 514 kwh in 2015 to 989 kwh by 2040.

2© Ecobank 2016 | The energy challenge in Sub-Saharan Africa | Dr Edward George | 22 March 2016

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The West Africa Power Pool (WAPP): work in progress

© Ecobank 2016 | The energy challenge in Sub-Saharan Africa | Dr Edward George | 22 March 2016

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• Launched in October 2012, M-KOPA enables Africans to acquire solar power units through hire purchase.

• Customers pay a deposit of KES3,000, and 365 daily payments of KES40.

• After one year, they own the unit outright.

• In its first two years M-KOPA brought power to over 100,000 homes in Kenya, Uganda and Tanzania.

• This required no government or donor funding and was entirely financed by African households themselves.

• Innovation and creative thinking is needed to ensure that remote communities gain access to reliable power supplies.M-KOPA III Solar Home System

© Ecobank 2016 | The energy challenge in Sub-Saharan Africa | Dr Edward George | 22 March 2016

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