Alex Rose-Innes
Fatima Denton, director of the Economic Commission for Africa (ECA) Special Initiatives Division, had already called the green industrialisation of Africa the Holy Grail” of the continent’s socio-economic transformation as far back as 2016.
At economic forums in N’Djamena in Chad, Addis Ababa in Ethiopia, Abuja in Nigeria, Rabat in Morocco and even in New York in the United States, Africa’s experts had expressed preference and willingness towards greening the continent.
“Green industrialisation is the only way for Africa, it is a pre-condition for sustainable and inclusive growth,” the Economic Report on Africa, published by the United Nations Economic Commission for Africa (ECA), said as the report took into consideration the Sustainable Development Goals (SDG’s) and the Paris Climate Change Agreement, all adopted by leaders worldwide.
African energy production and usage contribute 87% of overall carbon dioxide emissions generated by humans. Inhibiting this trend is at the centre of green advocacy.
However, according to Denton, it may be tough to sell Africa’s oil and natural gas exporters such as Angola and Nigeria on the idea of limiting fossil fuel drilling. For both countries, oil accounts for more than 90% of exports and at least two-thirds of the national budget. Before the oil price crash, even countries which had just discovered oil, such as Ghana, Liberia and Sierra Leone, had anticipated a financial windfall from this lucrative industry.
These countries fear that limiting fossil fuel investments may severely damage their economies, although green advocates continue to insist that renewable energy, including energy generated by sun, wind, rain, waves and geothermal heat, of which Africa has in abundance, was the way of the future.
The ECA report said that African countries should take advantage of new innovations, technologies and business models using natural resources optimally and efficiently.
Kandeh Yumkella, the former special representative of the UN Secretary-General for Sustainable Energy for All (a global initiative), offered a middle-of-the-road approach, recommending that Africa adopt an all-of-the-above energy strategy.
Professor Michael E. Porter of Harvard University in the United States told the Harvard Business Review that globally, countries had been slow to embrace green technology as a result of the belief that environmental regulations erode competitiveness
Salifou Issoufou and Nama Ouattara, economists with the International Monetary Fund and World Bank respectively, presented a paper based on their research, titled “Does Green Investment Raise Productivity?” at the African Economic Conference in Addis Ababa. To the shock of all, these researchers said that Africa should be careful in its approach to large-scale investments in green technologies. The paper showed that costs, made worse by regulations, stifled interest and required high amounts of investing before implementation.
But despite Issoufou and. Ouattara’s research findings, innovative technologies had proved that costs could be contained. At the same time, with African economies nose-diving, many governments on the continent had been forced to explore alternative green options.
Government leadership had played a key role in driving the growth of renewables, particularly wind and solar, in the power sector and already by 2013, many African countries had renewable energy targets in place. A further 146 countries had supporting policies with cities, communities and private companies at the helm of the 100% renewable movement.
Carlos Lopes, executive secretary of the Economic Commission for Africa, expressed optimism: “We have the potential to access renewable energy at a time when the price of producing this energy is comparable to fossil fuel production.”
