By Bakary Traoré, Economist, OECD Development Centre, and Elisa Saint-Martin, Junior policy Analyst, OECD Development Centre
A review of on-going industrial strategies (Africa’s Development Dynamics 2019 report) shows that most African countries have the ambition to expand processing activities in sub-sectors such as agro-industries, fertilisers, metals and construction materials. To achieve this, it is urgent to improve the quality of energy supply across the continent. Regional co-operation for energy among Africa’s cross-border intermediary cities can be a game changer.
First, let’s take a look at the main challenges
Today, industrial processing activities and transport services account for no more than 35% of total energy consumption in Africa (see Figure 1, based on the OECD/IEA 2019 database). Africa’s electrical networks are struggling to cope with current needs: on average, firms in sub-Saharan Africa face 8.5 electricity outages a month (World Bank, Enterprise surveys, 2019), and 40.5% of them consider insufficient access to energy to be a major constraint to their growth and competitiveness.