High costs can make energy use unattainable for low-income families.
According to the International Energy Agency, a staggering 600 million people in Africa still lack access to electricity, creating huge barriers to economic growth and social progress. This situation not only stifles individual potential but also hampers the continent’s overall development, perpetuating cycles of poverty and limiting opportunities for millions.
In response to this urgent crisis, the World Bank, in collaboration with the African Development Bank, has launched Mission 300, an ambitious initiative aimed at connecting 300 million Africans to electricity by 2030. This transformative goal represents a beacon of hope for countless communities, promising to illuminate lives and empower individuals with the energy needed to thrive.
Last week, African leaders convened in Tanzania for the Mission 300 Africa Energy Summit, culminating in the historic Dar es Salaam Energy Declaration. This summit was yet another effort to unite thousands of business leaders, financing partners, and development partners around a shared vision of sustainable energy access.
I was delighted to learn that there were financial commitments put on table to kick this ambitious initiative off. The commitment demonstrated at this summit is a testament to Africa’s determination to overcome energy poverty.
Yet, this is not the first time the continent has embarked on the path toward universal energy access; it reflects a long-standing ambition that continues to drive innovation and collaboration across nations. But what keeps holding us back?
Generating renewable energy
The effort to electrify Africa is non-negotiable. We have to do it. But how will we make sure that we succeed once and for all and enter a race to end energy poverty? What seems to be an eternal truth is that addressing energy poverty must also be about addressing poverty itself.
I vividly remember the moment I learned, with profound shock, that most energy utilities across Africa are struggling to achieve profitability. The stark reality is that there simply aren’t enough customers to sustain a viable energy delivery business model. Even more enlightening is the realisation that providing universal domestic access to electricity will not generate the demand necessary for making energy affordable and effective. We need to invest in productive uses of electricity such as manufacturing and agri-food processing, to name just two.
It may seem perplexing to many that Kenya boasts an impressive green grid with over 80 per cent of its energy sourced from renewables, yet it simultaneously faces one of the highest unit costs for electricity in the region. This paradox highlights a critical issue at the core of Africa’s energy landscape.
The challenge is not just about generating renewable energy; it’s about creating a sustainable demand that can support both economic growth and equitable access to energy for all. That's why I have focused so much of this column on the special and catalytic role entrepreneurs, like Cecilia, must play in an inclusive Green Climate Resilient Economy. A productive economy coupled with increased energy access are a match made in heaven.
As we navigate this complex scenario, we must recognize that the path forward requires innovative solutions and collaborative efforts. The potential for decentralised energy systems, like community-based mini-grids powered by solar or hydropower, offers a beacon of hope. These localised solutions can empower communities, reduce costs, and ultimately transform the energy sector into a catalyst for economic development.
Affordability is the bridge that connects energy availability to meaningful and sustainable impact on individuals, communities, and economies. Energy affordability is critical because it determines whether households and businesses can actually benefit from the energy infrastructure put in place.
Affordable energy
Even when electricity grids or renewable systems are extended to underserved areas, high costs can make energy use unattainable for low-income families and not breach the last mile. This perpetuates cycles of poverty, as access to affordable energy is directly linked to improved livelihoods, better education, and enhanced healthcare.
For instance, families that cannot afford electricity are forced to rely solely on expensive and harmful alternatives like kerosene lamps, charocal or wood for cooking, which not only strain their finances but also harm their health and the environment.
From an economic perspective, affordable energy is a cornerstone of growth and growth is the engine for job creation. We know that businesses and entrepreneurs rely on affordable electricity to power machinery, refrigeration, and other tools essential for productivity.
When energy costs are too high, businesses struggle to thrive, jobs are lost, and local economies stagnate. On the other hand, affordable energy can unlock economic opportunities, enabling communities to break free from poverty traps and contribute meaningfully to national development.
In this pivotal moment, we stand at the crossroads of opportunity and challenge. By embracing new technologies and fostering a culture of innovation, we can reshape Africa’s energy future — one that not only meets the needs of today but also lays the groundwork for a prosperous tomorrow.
Wanjira Mathai is the MD for Africa & Global Partnerships at the World Resources Institute and Chair of the Wangari Maathai Foundation
