ADB Chief, Adesina.
By Olukayode Oyeleye
The African Development Bank (AfDB) has proposed the formation of the “Transformative Partnership on Energy in Africa.” This was disclosed at the week end in Abidjan, Cote d’Ivoire, by the president of the bank, Dr. Akinwumi Adesina. He made this known during the High-level consultative stakeholders’ meeting on the new deal on energy for Africa. “Under this,” said Adesina, “we will pull together to drive the needed reforms in Africa’s energy sector to achieve the universal access to energy by 2025. Success lies just ahead of us!”
“On September 1, 2015, I took my oath of office as the 8th President of the African Development Bank. In my inaugural speech, I laid out the five priority areas that we will focus on as a Bank to help advance the transformation of Africa: Light up and Power Africa was at the top of my priority list. Two weeks on, I am delighted that the Bank and its partners have fully engaged in a series of dialogues marking the Energy Week in Abidjan… to help us jointly develop what we refer to as the “New Deal on Energy in Africa,” Adesina noted.
He lamented that “lack of energy is the most critical challenge facing Africa today,” adding that “over 645 million Africans do not have access to energy. Africa has the largest energy poverty in the world. It has been like this for so long that we forget that lack of energy is not normal. The abnormal has become the normal.”
“We must change,” he said, as “Africa can no longer wait. Just like blood is to the body, so is energy to the economy.” Adesina reasoned that “an economy that has no electricity is only dying, slowly. Africa’s growth and prosperity depends on solving the crisis on energy.” According to him, “it will require a greater level of commitment than ever seen before, for Africa’s present and future depends on it. We cannot simply be content with small ambitions on energy in Africa. We must all rise up and do more – and do so faster and at scale. And we must act differently, by building strategic partnerships on energy in Africa that allows us to reach a greater level of ambition and delivery.”
Recognising that Africa is rich in energy resources, but poor in energy supply and access, Adesina outlined that the continent has potential for 11 terawatts of solar energy, 350 gigawatts of hydropower, 110 gigawatts of wind power, and an additional 15 gigawatts of geothermal potential. but still generates the same level of electricity as Spain or Belgium. He regarded these immense untapped resources as an opportunity, urging Africa to accelerate investments in technology, innovations, policies and regulations to speed up a renewable energy revolution in order to unlock its huge renewable energy potential and combine this with conventional energy to light up and power Africa.
Africa must lead in all these efforts as “only the person that wears the shoes knows where it pinches, and not having energy “costs Africa about 2.4% in GDP loss annually,” intoned Adesina who promised that “the African Development Bank will raise its level of ambition and engagement for energy for Africa. This is why we are working with partners to launch the New Deal for Energy for Africa.”
He outlined five critical elements under the New Deal on Energy for Africa. “First, as Africa’s premier development finance institution, the African Development Bank will significantly expand its support towards energy in Africa. Second, our development partners will also need to scale up on-going efforts. Third, countries will need to expand their share of financing going into the energy sector. Fourth, stronger political will, will be needed. And finally, we as partners must work together, coordinate our efforts to drive critical policy, regulatory reforms of the energy sector to improve incentives for accelerated investments.”
Adesina agreed that a lot of financing will be needed, urging that, “together, we must close the $55 billion financing gap for energy in sub-Saharan Africa. And we must raise our level of commitment to meet the $22 billion needed to support universal access to energy in the region.” He suggested that “multilateral development banks such as the African Development Bank, the World Bank and bilateral finance agencies can leverage their balance sheets with greater co-financing arrangements and use of partial risk guarantees for public and private sector investors. By focusing on project development, pipelines of bankable projects can be developed, for financing. This is why the African Development Bank supported the establishment of Africa 50 to help countries to develop transformative and bankable projects, while supporting project financing.”
He recalled that African Heads of State, under the auspices of the African Union, launched the initiative on the Africa Renewable Energy, with AfDB in partnership. He commend the support of the G 7, led by France and Germany. He called for further push for the development of major regional energy projects in order to drive Africa’s industrial growth, citing the Grand Inga dam alone as capable of providing “energy to about 500 million people in Africa with renewable energy.” he recognised this as strategic, urging African leaders to “work together to get this done, while paying attention to social and environmental safeguards.”
Dr. Adesina noted that, “today, Africa is witnessing a rapid growth in private sector investments in Independent Power Projects, giving an example of “Tony Elumelu, who spearheaded the African Energy Leaders Group.” He disclosed that, “over $4 billion annually is now devoted by private sector investors to Independent Power Projects across sub-Saharan Africa.” He added that “South Africa today leads on independent power projects for renewable energy with close to $14 billion in expected investments, from wind to solar energy.”
“Political will is crucial to light up and power Africa,” Adesina maintained, recognising the presence of Prime Minister of the Republic of Cote d’Ivoire, Daniel Kablan Duncan, Prime Minister of the Republic of Benin, Lionel Zinsou, Vice Prime Minister of the Democratic Republic of Congo, Thomas Luhaka, the executive directors of the bank and other officials of the bank who were in attendance. Former United Nations Secretary General, Mr. Kofi Annan, gave an address to via video.
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