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Book Book
Title:Brighter Africa: The growth potential of the sub-Saharan electricity sector
Authors:Castellano, Antonio
Kendall, Adam
Nikomarov, Mikhail
Swemmer, Tarryn
Year:2015
Pages:58
Language:English
Publisher:McKinsey&Company
Geographic term:Subsaharan Africa
Subjects:energy resources
sustainable development
energy policy
electricity
Link:https://www.icafrica.org/fileadmin/documents/Knowledge/Energy/McKensey-Brighter_Africa_The_growth_potential_of_the_sub-Saharan_electricity_sector.pdf
Abstract:The power sector in sub-Saharan Africa offers a unique combination of transformative potential and attractive investment opportunity. The inadequacy of electricity supply is a fact of life in nearly every sub-Saharan country. Furthermore, in most countries, electricity is provided by expensive diesel generators, with prices ranging from three to six times what grid consumers pay across the world. This makes many Africa-based industries and manufacturing sectors uncompetitive, slows job growth, and drags down annual GDP growth between one to three percentage points. The high penetration of generators, however, demonstrates that African businesses and consumers are willing to pay for electricity. This creates opportunities across the entire power-sector value chain in sub-Saharan Africa, especially as growth rates in other regions stagnate.
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