The power sector in sub-Saharan Africa offers a unique combination of transformative potential and attractive investment opportunity. The inadequacy of electricity supply is a fact of life in nearly every sub-Saharan country. Furthermore, in most countries, electricity is provided by expensive diesel generators, with prices ranging from three to six times what grid consumers pay across the world. This makes many Africa-based industries and manufacturing sectors uncompetitive, slows job growth, and drags down annual GDP growth between one to three percentage points. The high penetration of generators, however, demonstrates that African businesses and consumers are willing to pay for electricity. This creates opportunities across the entire power-sector value chain in sub-Saharan Africa, especially as growth rates in other regions stagnate to a level.
According to a report published by McKinsey and Company, 40% of new capacity could come from gas and more than 25% of electricity to come from renewable sources. 2.5 million new jobs to be created in process of electrification.
The electricity consumption in sub-saharan Africa is poised to grow 4 times the current value and reach approx 1600 terawatt-hour per annum by 2040.
The 2nd Annual Power Tech Africa is the opportunity to gain useful insight in the renewables sector.
ARE is an endorser of the summit.
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