Africa wants to define its own energy policy

2023-05-16 17:40:00

Does Europe know Africa’s real energy needs? Not so sure to hear the participants in one of the round tables: “Africa, at the forefront of energies: what energy cooperation between the European Union and the African Union?” which was held during the 2nd edition of the Europe-Africa Forum, organized by La Tribune on 15 and 16 May in Marseille.

At the COP in Glasgow, on behalf of the “climate justice”the rich countries had promised to pay 100 billion dollars each year to African countries to enable them to ensure their energy transition. “At the moment, 50 million dollars have been paid”observes Lionel Zinsou, former Prime Minister of Benin, today director of the pan-African investment bank SouthBridge, which he founded.

“There is no choice between development and energy”

Because Africa, if it is ready to act for the climate, must also ensure its development to increase the standard of living of its population and well-being, particularly in terms of education and health. “There is no choice between development and energy”tranche Charles M’Ba, former Minister Delegate to the Minister of Economy, Finance, Budget and Privatization of Gabon

Today, 650 million people still do not have access to electricity on the continent which concentrates 18% of the world’s population but generates barely 3% of CO2 emissions. “As there is no development without energy production, we have a different perception on this subject compared to Europe, in particular compared to fossil fuels”argues Ibrahim Yacouba, Minister of Energy and Renewable Energies of Niger.

“Globally, fossil fuels represent 85% of the total energy supply”, recalls Jean-Pierre Favennec, energy specialist and professor at Paris-Dauphine University. And it is in Europe, particularly in Germany, that extensions of coal mining took place this year.

“In Europe, there are people who are campaigning for African countries to do without fossil fuels, in fact they are acting once morest us, who have the lowest emission rates in the world”, squeals Lionel Zinsou, barely veiled allusion to the oil project that TotalEnergies is developing in Uganda, which is the subject of strong criticism in France. In fact, annual CO2 emissions are 0.6 tons per capita in Benin and 0.1 ton per capita in Tanzania or Uganda, while it is 6.1 tons in the European Union. The comparison is instructive.

Mozambique, a future gas power

“The “beautiful souls” tell us that we should not develop the exploitation of hydrocarbons while industrializing ourselves but without energy”, quips the boss of SouthBridge. On the contrary, according to him, it is necessary to develop extractive activities, and he finds positive that Mozambique will become a gas power which will notably supply gas to… Europe.

Indeed, the African subsoil is rich in raw materials, whether fossil fuels – oil, gas, coal – but also ores – copper, lithium, cobalt… – for which global demand will explode in the coming years with the production of electric vehicles and their batteries, wind turbines and solar panels.

But to exploit these natural resources and generate income, the investment must be financed. “We can resort to taxation but we are quickly limited because it has an impact on the economy. We must not neglect philanthropy which provides donations, like the Melinda and Bill Gates Foundation, and allows a leverage effect, but that is not enough”emphasizes Lionel Zinsou.

Moreover, there is no question of directing part of the current aid for development and the fight once morest poverty provided by international institutions and the European Union towards the energy transition.

The problem is that the continent is still too perceived as at risk by the international financial markets. “It is absolutely necessary to “de-risk” Africa because the cost of financing is exaggerated today in view of real risks and current legislation”considers Ibrahim Yacouba.

Especially since Africa has several advantages in the new economic configuration created by the fight once morest global warming. Thus, the immense carbon sinks that are forests can today be valued thanks to carbon certificates, the sale of which on the international market can generate income.

A high savings rate

Furthermore, underlines Lionel Zinsou, “Africa finances Africa, especially with its own institutions”, recalling that the continent has a high savings rate. Of the 20 to 25% of investment in relation to GDP, only 5% comes from direct foreign flows.

“Contrary to popular belief, China is not Africa’s largest creditor, it only accounts for a third of the debt. It is Europe’s most important player in terms of credit, investments…”, he recalls. Another financial element to take into account is the contribution of the diaspora: 100 billion euros are sent to the continent per year, helping to finance the local economy.

Especially since these sums invested can generate employment, particularly in renewable energies. “Some of the solar equipment can be produced locally, which can be an emulation in terms of skills and jobs, especially since today the continent is home to a large network of entrepreneurs who innovate, in particular of women »points out Myriam Fournier Kacimi, founder and general manager of SunGy, whose activity in solar energy is present on both sides of the Mediterranean.

The entrepreneur defends a pragmatic approach. “The solutions must be adapted. For example, solar panels help to overcome the problems of malfunctioning electrical networks”she explains. “The situations are very different depending on the country and region, with certain populations being far from certain networks. Decentralization is necessary, solar and the energy mix can contribute to it”by the argument of Myriam Fournier Kacimi.

It encourages energy savings, the reduction of subsidized energy in oil-producing countries, the increased use of photovoltaics and digital control which make the use of energy more efficient, by offering several solutions. “We have well-trained engineers who today work here to find complex solutions for Europe”, she rejoices. Finally, Europe may well need Africa more and more… not only for its gas and oil but also for its energy mix solutions.