High cost of electricity slows Africa’s growth
Africa, the continent with the fastest-growing economy in the world, is poised for extraordinary growth. But several obstacles conceivably prevent the continent from reaching its fullest potential, not the least of which is the high cost of energy, particularly electricity.
According to Yahoo Finance, the world’s electricity market is currently valued at over US$1,94 trillion and is projected to reach US$3,9 trillion in 2032.
This projection is a result of an estimated rise in demand for electricity, expected to spike by a 3,3 percent year-on-year increase.
This growth would be driven by population increase, and economic development with the industrial, residential, and commercial sectors as the primary consumers. On this note, it is important that Africa addresses the challenges plaguing its power industry so as to mitigate costs and maximise revenue.
While on a global scale, Africa boasts relatively low electricity costs, there still exist regions whose prices are relatively high compared to household incomes. There also exists a lack of adequate electricity supply, highlighting a need for energy concerns to be addressed.
The high cost of electricity in Africa is a multifaceted challenge that requires a comprehensive approach. Juxtaposed against the average household income, state of electricity infrastructure, and lack of access to electricity, the high cost of electricity can create a significant strain on the economy of the regions most affected.
This list was compiled courtesy of Global Petrol Prices, a platform that publishes up-to-date information on retail energy prices around the world including motor fuel prices, electricity prices, and natural gas prices.
The data set was last dated March 2023. There are however, African countries rated in 2023 with the cheapest electricity prices in kilowatts per hour. — Business Insider Africa