Innovation, healthcare, technology, and even food production are reliant on the energy sector to power them. Energy holds up the functionality of other sectors, providing a vehicle to drive industries, communication and transportation. It somewhat serves as a foundation for our economic activities and progress.
The World Bank describes energy as the lifeline of a modern economy and a foundation for development. An exploratory comparative analysis of regions with higher energy access versus regions with lower energy access shows that high-access regions also have higher GDPs. This is obvious in the case of North America vs. Sub-Saharan Africa.
Although correlation does not imply causation, energy remains a critical piece of the development puzzle, as it powers productivity across sectors. The African Development Bank finds that energy poverty in Africa is estimated to cost the continent 2-4 % GDP annually.
At the micro level, energy poverty cripples entrepreneurial endeavours as businesses have to find systems to supply their own power while also juggling the other tough realities of running a new venture. This limits the potential of startups and nano, micro and small businesses to scale.
Energy poverty also increases morbidity and mortality rates within the population, as lack of electricity can lead to spoilage of medications, including life-saving vaccines.
Industrialisation is also at the mercy of energy access. Indeed, without reliable energy, industries would fail to produce, crippling their capacity to contribute to the economy and even employ Africa’s teeming youth population.
The impact of energy access is stark and layered, weaving into every fabric of society, especially those in developing countries and emerging economies. Hence, it is important for us as a nation and region to prioritise the advancement of energy access. Macro and micro energy solutions that drive access at scale should be a focus of the government, entrepreneurs, financial institutions and donors, especially in regions with so much potential like Africa.
Expanding energy access is not just about enabling economic activity; it is crucial for building climate resilience and promoting inclusive growth. As climate change worsens, vulnerable populations face increased risks from extreme weather, food insecurity, and displacement. Clean and decentralised energy systems, such as solar mini-grids and energy-efficient technologies, can empower rural communities, decrease dependence on fossil fuels, and improve adaptability. Thus, energy access becomes more than just a utility; it serves as a vital tool for promoting equity, sustainability and long-term stability in the region.
