This paper by the International Monetary Fund, summarises- to achieve universal electricity access and rapid economic development, Sub-Saharan Africa needs to significantly accelerate its electricity generation. Despite rising real per capita incomes over the past two decades, electricity production per capita has been declining. In addition, while hydropower is prominent in some countries, solar and wind power generation has lagged other world regions, even though sub-Saharan Africa has some of the most favorable conditions, particularly in terms of solar potential.
Relying more on solar- and wind-based energy would be economically advantageous for sub-Saharan Africa because of the reduced cost of renewables and the region’s geography, regardless of climate ambitions. However, a swifter shift would be needed to meet climate policy objectives. While low-carbon energy sources have relatively low operating expenses, they require high initial capital investments. Thus, the primary challenge across sub-Saharan Africa is securing the necessary financing for renewables investment. A mix of domestic and external financing can increase both renewable electricity generation and GDP.
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