Categories: Energy

Africa Faces $26.2 Billion Annual Economic Loss Due to Power Crisis

The persistent power crisis in Africa has emerged as a significant challenge, resulting in annual economic losses of $26.2 billion.

This economic drain, equivalent to two percent of the continent’s Gross Domestic Product (GDP), has been a topic of concern and discussion among experts and policymakers.

The power crisis was brought into sharp focus at the inaugural Africa Climate Forum 2023, held in Abuja.

Dr. George Nwangwu, Director-General of the Global Centre for Law, Business, and Economy, emphasized the dire situation, describing it as a severe challenge that affects not only private citizens but also businesses across the continent.

Africa, home to a significant portion of the world’s impoverished population, is acutely aware of the need to address energy-related issues effectively.

Dr. Nwangwu warned that mishandling the energy transition in Africa could have existential consequences for the entire continent.

The forum aimed to explore the numerous opportunities presented by the energy transition and promote discussions on overcoming the challenges that hinder progress.

Participants underscored the need for substantial investments in Africa’s transition to clean and sustainable energy.

Senator Seriake Dickson, Chairman of the Senate Committee on Ecology and Climate Change, highlighted the scale of investment required for Africa’s transition to sustainable energy.

Despite the continent’s abundant renewable energy sources, it has thus far attracted a mere 2% of the necessary financial resources, emphasizing the urgency of innovative solutions and financial backing to ensure Africa’s journey towards a brighter energy future.

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