2022-01-31-IRENA-Towards_a_Prosperous_and_Sustainable_Africa_156页_9mb

TOWARDS ANG RICA, IRENA, UNECA

Maximizing socio-economic benefits from Africa’s energy transition is essential for the continent’s prosperity, as part of energy transition foster inclusive growth, reduce poverty, and create jobs. The Just Energy Transition can achieve SDG7 and meet climate goals, provided inclusive principles are adopted to avoid leaving communities behind.

International cooperation is crucial for bridging finance gaps, as Africa Africa still faces major challenges including energy access deficits, high dependence on imported fossil fuels, and regulatory barriers.

Private sector participation should be enhanced through favorable policies, local content regulations, and de-risking mechanisms to accelerate sustainable energy deployment. Finance mechanisms like green bonds can improve accessibility.

The energy-water-food nexus deserves attention, as reliable energy is fundamental for water pumping, food processing, and irrigation. Job creation is significant across the renewable energy value chain.

Governments must integrate inclusive socio-economic considerations into energy planning and strengthen institutional capacities to ensure effective policy implementation.

The European Commission and EIB support Africa’s energy transition through funding, partnerships, and blended finance solutions.

Foreword by Francesco Starace, CEO Enel Group

Energy transition in Africa offers great potential for socio-economic development, environmental mitigation opportunities, and job creation. Renewable energy creates more jobs than fossil fuels, while also improving household incomes and enabling women’s participation. Climate mitigation calls for bold actions, as the continent holds vast renewable resources that can be leveraged for prosperity.

Summary and Key Recommendations

Economic Benefits: Energy transition creates 8 million jobs by 2050, with significant GDP growth under a 1.5°C Scenario.

Social Benefits: Universal energy access improvements healthcare and education outcomes. Renewable energy companies can engage communities through local ownership models and social investments.

Environmental Benefits: Green energy reduces carbon emissions, lessening climate vulnerabilities Africa faces in high temperatures and flooding events.

Key Recommendations:

• Integrate inclusiveness and social justice in energy strategies
• Establish sound governance and capacitate institutions
• Align energy infrastructure planning with socio-economic development
• Define multi-stakeholder platforms and partnerships
• Enhance investments in social infrastructure
• Promote awareness of green industrialization
• Leverage regional economic integration
• Scale up science, technology, and innovation
• Implement smart local content regulations
• Expand access to innovative financing and de-risking tools
• Improve electricity market openness and regulatory frameworks
• Redirect public support toward inclusive energy consumption

4.0 Recommendations

Public Level:

1. Integrate inclusiveness into energy strategies to leave no one behind
2. Strengthen governance and institution-building
3. Align energy infrastructure with broader development goals
4. Foster partnerships for inclusive policies

Industry Level:

7. Promote South-South industrial integration for competitive supply chains
8. Boost technical training for energy sector jobs
9. Advance science, tech, and research for sustainable technology uptake

Business Environment Level:

11. Develop innovative financing tools like green bonds
12. Increase domestic financing participation
13. Expand de-risking tools to lower capital costs

Visionary Statement by Maria Shaw-Barragan

The energy transition is not merely environmental but socio-economic. Strategic investments in renewable energy can create massive job opportunities, improve living standards, and build climate resilience throughout Africa. This is especially vital as the continent emerges from the COVID-19 economic shock.