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How COVID-19 impacts access to sustainable energy in SSA
The World Bank says despite accelerated progress over the past decade, the world is expected to fall short of the SDG 7 target. In its just-released 2020 edition of the Energy Progress Report, the World Bank says under current policies, an estimated 620 million people would still lack access to electricity in 2030, and 85 per cent of them will be in sub-Saharan Africa. Makhtar Diop, the Vice President for Infrastructure at the World Bank joins CNBC Africa to discuss the findings of this report.
Thu, 28 May 2020 16:55:25 GMT
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AI Generated Summary
- Despite global progress in expanding electricity access, Sub-Saharan Africa still lags behind, with 90% of those lacking access projected to be in the region by 2030.
- The World Bank emphasizes the crucial link between energy access and key global issues such as climate change, renewable energy, and the cost of energy.
- Significant financial investments totaling $150 billion over the next six years are needed to bridge the energy gap in Africa, with the World Bank committing $5 billion towards this goal.
The World Bank recently released its 2020 edition of the Energy Progress Report, highlighting the challenges ahead in achieving the Sustainable Development Goal 7 targets for universal access to sustainable energy by 2030. The report indicates that despite progress made over the past decade, a significant portion of the global population is still projected to lack access to electricity by 2030, with 90% of these individuals residing in Sub-Saharan Africa. Makhtar Diop, the Vice President for Infrastructure at the World Bank, joined CNBC Africa to discuss the implications of the report and shed light on potential solutions to bridge the energy gap in Africa. Diop emphasized that while progress has been made in expanding access to electricity globally, the African continent is lagging behind in this regard. He highlighted the crucial link between energy access and key global issues such as climate change, renewable energy, and the cost of energy. With the world currently facing the challenges posed by the COVID-19 pandemic, the need for sustainable energy access in Africa has become even more pressing. Diop noted that the World Bank has been spearheading initiatives in Africa to enhance energy access, such as the LEAP Africa program. The goal is to significantly increase resources directed towards energy access in African countries over the next few years, aiming to ensure that by 2030, no country in Africa has less than 50% access to electricity. To achieve this ambitious target, substantial financial investments amounting to $150 billion will be required over the next six years, with the World Bank pledging $5 billion towards this goal. One of the key initiatives includes creating a conducive environment for trade in electricity among African countries, which could lead to enhanced access to affordable and sustainable energy sources. However, the financial sustainability of utilities poses a critical challenge, particularly amidst the economic slowdown caused by the pandemic. Diop stressed the importance of governments providing support to ensure the stability of utility companies as they play a vital role in achieving the energy access targets. When questioned about the source of funding for these initiatives, Diop highlighted the role of private sector investments, citing the significant decrease in the cost of solar electricity over the years due to increased private sector involvement. He emphasized the need to continue mobilizing private sector resources and investing in generation to bridge the energy gap in Africa. Looking ahead to the feasibility of the 2030 target, Diop expressed confidence in its achievability but underscored the need to accelerate rural connectivity, secure contracts for private sector involvement, and support financially sound utilities to sustain investments. He noted that political commitment and continuity of efforts over the next decade will be crucial in addressing the energy access challenges in Africa. In conclusion, bridging the energy gap in Africa requires a multifaceted approach involving public and private sector collaboration, substantial financial investments, and unwavering political commitment to ensure sustainable energy access for all.
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