Sub-Saharan Africa is still in the dark but North Africa will soon be selling power to Europe

Africa, particularly sub-Saharan Africa, has an electricity problem.

Even though the continent’s power generating capacity has slowly improved over the years, rationing, rolling shortages, and blackouts continue to hamper many countries development—including economic giants like South Africa and Nigeria. These cutoffs stunt economic growth, hindering small and large businesses alike as well as schools and hospitals.

Limited financing also encumbers power generation: African governments invest about $12 billion a year in the power sector, even though it needs an estimated $33 billion in 2015. By 2040 the African power sector will need $63 billion. As a result, the low access, poor reliability and high prices of electricity cost African economies an average of 2.1% of their GDP, according to the World Bank.

An aerial view of the Morocco’s Noor 3 solar power plant.

But while sub-Saharan Africa remains in the dark, north African nations have been making major progress with power generation. Egypt, Algeria, Tunisia, and Morocco have invested tens of billions of dollars in renewable energy projects—particularly solar power—as a springboard to drive their energy ambitions. By harnessing the power of the Saharan sun, these countries hope to not only bring down the cost of solar technology, but also scale it for larger use, enhance energy security, create cleaner environments, and boost the creation of new business opportunities. Read more…