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Africa's Energy Deficit and Green Hydrogen Potential: Addressing Economic Stagnation and Air Pollution

3 months ago
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Africa's Energy Deficit and Green Hydrogen Potential: Addressing Economic Stagnation and Air Pollution

Key Insights

  • Africa's persistent energy deficit costs 2-4% of its GDP annually, significantly hindering sustainable economic growth and perpetuating widespread poverty.

  • Despite minimal global greenhouse gas contributions, local air pollution, driven by energy poverty, causes 1.1 million deaths across the African continent.

  • Green hydrogen is emerging as a promising technology for Africa to reduce fossil fuel dependence and meet climate commitments, requiring robust infrastructure and policy frameworks.

  • Strategic investment in modern, affordable energy solutions is crucial for Africa to overcome energy poverty, improve public health, and unlock industrialization potential.

Africa’s persistent energy-sector bottlenecks and widespread power shortages impose a significant economic burden, costing the continent an estimated 2-4 percent of its Gross Domestic Product (GDP) annually. This chronic under-supply of secure and affordable electricity profoundly undermines sustainable economic growth, job creation, and investment, perpetuating poverty, particularly in rural areas and among women, as highlighted by the World Economic Forum. With close to 770 million people, predominantly in sub-Saharan Africa, still lacking access to electricity despite recent gains from increased grid connections and off-grid system deployments, the energy deficit remains a formidable barrier to industrialization, mechanization of productive sectors, and food security across the continent. Africa currently consumes only 3.1% of the world’s energy output, with southern and northern Africa accounting for 45% and 40% of the continent’s consumption, respectively, according to the Africa Energy Outlook 2020 by the IEA.

While Africa is widely recognized as the least contributor to global greenhouse gas (GHG) emissions, its energy poverty drives a severe local air pollution crisis. A recent data analysis reveals that local air pollutants, primarily from household and ambient sources, were responsible for 1.1 million deaths across Africa in the target year, with household air pollution accounting for 697,000 deaths and ambient air pollution for 394,000. This stark reality underscores that Africa’s pollutant emission profile is largely a consequence of its energy deficit and the lack of modern, reliable, and affordable energy services, rather than industrial-scale GHG emissions.

In response to these multifaceted challenges, several African nations are increasingly exploring green hydrogen as a potential technology to reduce their reliance on fossil fuel imports and fulfill global climate commitments. This emerging technology offers a pathway to decarbonization, but its viability hinges on addressing critical questions regarding costs, risks, and applications from an African perspective. For green hydrogen to become a transformative solution, the continent must prioritize several key areas. These include creating collaborative innovation platforms to strengthen research and development of sustainable, easily maintainable technologies, thereby improving the sector’s competitiveness. Furthermore, building robust hydrogen energy infrastructure—encompassing production, efficient storage, transport, and refueling facilities—is paramount. Effective communication on the value of green hydrogen and promoting its use across productive sectors are also crucial. Finally, establishing or improving comprehensive legal frameworks is essential to support the entire hydrogen value chain, ensuring a conducive environment for investment and deployment.