Unreliable electricity supply holding back Africa

Africa’s regional integration has long been crucial to the continent’s economic development and prosperity. +owever, one of the significant challenges to this integration is the inadeTuate access to elec tricity in many African countries. Several reasons maNe unreliable and low electri fication rates a significant impediment to Africa’s regional integration.

)irst, electricity is a critical input for in dustrial production and economic growth. Without access to reliable electricity, businesses cannot operate at full capacity, which curtails productivity and competi tiveness. (nergy intensive industries such as manufacturing, mining and agriculture are the hardest hit without electricity or energy.

Two of the largest economies in Africa, South Africa and 1igeria, have the poten tial to lead the way in regional economic integration. The lacN of access to reliable electricity has significantly hindered eco nomic growth in 1igeria. In South Africa, the energy crisis has led to freTuent power outages, which have disrupted industrial production and economic activity. With limited electricity access, it is difficult for African countries to compete with other regions to attract investment and trade.

InadeTuate access to electricity has also hindered cross border trade and investment in Africa. )or e[ample, the lacN of reliable electricity supply has made it difficult for African countries to develop regional value chains essential for economic integration. 2ne study found that, on average, it taNes per cent longer for goods to cross borders in Africa than in other regions. The unreliable energy infrastructure partially contributes to diffi culties in establishing cross border supply chains and transporting goods.

In contrast, countries with high levels of electricity access have been able to attract significant investment and drive economic growth. )or e[ample, 5wanda has made tremendous progress in e[panding access to electricity from . per cent in to

per cent in . The goal of 5wanda’s 1ational Strategy for Transformation is to achieve universal access to dependable electricity by .

The above mentioned development has facilitated investment in the country’s energy sector and enticed foreign invest ment in the manufacturing and services industries. As a result, 5wanda is the fastest growing economy in Africa in re cent years. According to the World %anN, (thiopia has recently made significant progress in e[panding access to electricity, with access increasing from . per cent in to . per cent in .

INVESTMENT

The manufacturing sector has e[pe rienced considerable investment from domestic and foreign firms, contributing to overall economic growth. +elped to drive investment in the country’s energy sector, including in renewable energy, *hana has the potential to become a net e[porter of electricity in the region.

The inadeTuate access to electricity in many African countries poses a significant challenge to successfully implementing the African &ontinental )ree Trade Agree ment Af&)TA .Af&)TAaspires to forge a singular marNet for commodities and amenities in Africa, the success of which is hinged on efficient and steadfast energy infrastructure to buttress cross border trade and investment.

Without adeTuate access to electricity, it will be difficult for African countries to taNe full advantage of the trade opportu nities provided by Af&)TA. Therefore, e[panding access to electricity is crucial for the successful implementation of the Af&)TA and the continent’s overall economic development and prosperity. 3rioritising the e[pansion of electricity infrastructure will position countries to better benefit from the trade opportunities created by the Af&)TA and drive econom ic growth and integration in the region. South Africa and 1igeria’s unreliable and low electricity access levels impede Africa’s regional integration.

African governments must prioritise the development of energy infrastructure and increase access to electricity, to unlocN the continent’s economic potential and improve the lives of millions of Africans. The inadeTuate access to electricity in many African countries is not only a hindrance to their economic growth and regional integration but also poses a significant challenge to the successful implementation of the Af&)TA. The lacN of reliable and affordable energy infrastructure hinders the development of regional value chains, which are essential for economic integration. 0oreover, it limits the potential for cross border trade and investment. Therefore, increasing access to reliable electricity must be a priority for African countries to achieve sustainable economic development and regional integration.

Johannes and Adunimay