The transition to renewables would boost Africa's economic growth by 6.4%.

The African continent is experiencing an incipient transition towards renewable energy with the incorporation of 26 GW of generation capacity over the last decade

The great African continent, destined to grow in all development indices in the coming decades, seems to have found in the transition towards renewable energy a strong ally to underpin its socio-economic growth. This is reflected in “Renewable Energy Market Analysis: Africa and its Regions”, a report published by the International Renewable Energy Agency (IRENA), which estimates that Africa could experience economic growth of 6.4% thanks to this type of green energy. Economic growth based on the scenario of a 1.5°C increase in global temperatures.

Thus, the IRENA report also reflects that this economic boom, sustained on average until 2050, would be logically reflected in the quality of life of citizens with a 3.5% increase in jobs and a growth in the well-being index, estimated at 25.4% until the aforementioned year. A well-being that would be signified, in part, thanks to the boost that the electrification of the economy would bring to areas such as Sub-Saharan Africa, whose electrification rate is, according to 2019 data, at a meager 46%, with 906 million people with limited access to electricity for tasks as routine and necessary as cooking.

The report also cites that only 3% of the world’s renewable energy jobs are located on the continent, something that is extremely significant considering the vast energy potential of Africa, which has enormous resources in wind, solar, hydraulic and geothermal energy. In addition, the central and southern regions of the continent have abundant minerals that are key to the production of electric batteries, wind turbines and other low-carbon technologies.

Renewables in Africa: accumulated growth and future

Although during the last decade the African continent has added 26 GW of renewable energy, mainly based on the strength of photovoltaic energy. Key to this has been an investment surge reflected in data from the last twenty years. If in the period between 2000-2009 spending on this area amounted to 0.5 trillion dollars (Anglo-Saxon trillions), this multiplied by ten during the decade 2010-2020 and reached five trillion dollars. Furthermore, this effort in the transition to renewables would generate a direct return in terms of employment. In addition to the previously mentioned figure of a 3.5% increase in jobs, the paper reflects that every million dollars invested in renewables would generate at least 26 jobs; compared to the 22 that every million dollars invested in energy efficiency would generate; and the 18 jobs created for every million dollars deposited for energy flexibility.

Despite the positive nature of these predictions, IRENA emphasizes that their materialization requires two major conditions. The first of these is the stability of African institutions and the need for joint cooperation and coordination at the regional level. The second is a comprehensive policy package that combines the pursuit of climate and environmental objectives with socioeconomic development and the well-being of the population as a whole.