Why there is little private sector involvement in energy access market

The energy access gap in Africa is a pressing issue that is widening as the population growth outpaces the current electrification efforts. Olivier Jacques-Cochneida, Electrics Vice President for Access to Energy Business Development in the Middle East and Africa, highlighted the challenges faced by the private sector in tapping into the opportunities in the energy market in a recent interview on CNBC Africa. In sub-Saharan Africa alone, 600 million people lack access to electricity, which accounts for 43% of the total sub-Saharan population. The COVID-19 crisis exacerbated this issue, making it difficult for public authorities, investors, and the private sector to access the markets easily. However, efforts are being made to revitalize the sector through collaborations between local authorities, the private sector, and investment funds. One of the main obstacles faced by private companies like Schneider Electric is the high demographic momentum in Africa, requiring additional efforts to meet the increasing demand for energy. To address these challenges and attract more investments in the energy market, innovative solutions and the right regulatory framework are essential.