World
Africa Needs to Eradicate Energy Poverty—NJ Ayuk
By Kester Kenn Klomegah
Understandably, energy is expected to drive Africa’s economic prosperity. In order to make great strides in the industrial sector and attain a high-level of sustainable development, for instance, energy is the key determining factor, argues NJ Ayuk, Executive Chairman of the African Energy Chamber, a pan-African company that focuses on research, documentation, negotiations and transactions in the energy sector.
According to him, scaling up Africa’s production capacity in order to achieve universal access to energy is a challenging task and points to the need for a transformative partnership-based strategy that aims to increase access to energy for all Africans.
He further talks about transparency, good governance and policies that could create a favourable investment climate, especially in the energy sector.
Speaking in an insightful interview with Kester Kenn Klomegah in early July 2021, NJ Ayuk unreservedly calls for strong foreign partnerships in harnessing and distribution of energy, stresses the significance of foreign investment in large-scale exploration projects in African countries.
Within the context of the newly created African Continental Free Trade Area (AfCFTA), he suggests that politicians, investors and stakeholders need to change the business perception and create an entirely new outlook into the future. Here are the interview excerpts:
What are the popular narratives about energy sources, production and utilization in Africa? In your expert view, how would you characterize energy needs in Africa?
The popular narratives are the prevalence of energy poverty on the continent. Most of the oil and gas producing countries have some kind of conflict going on in the area which affects the local people and the companies which choose to invest in these areas. For a country like Ghana, for example, we have seen the upside of the effective way of carrying out oil production, a major contribution has been its transparency and its policies.
African countries do, however, suffer from the policies they draft which take years to implement, and if implemented take long to administer the contracts for production to take effect. With that said, the effect on the upstream sector automatically affects the midstream and downstream, sectors, which essentially affects the economy of the different countries.
It’s without a doubt that energy poverty needs to be eradicated. Africa has the world’s lowest per capita energy consumption: with 16 per cent of the world’s population (1.18 billion out of 7.35 billion populations), it consumes about 3.3 per cent of global primary energy. Of all energy sources, Africa consumes the most oil (42 per cent of its total energy consumption) followed by gas (28 per cent), coal (22 per cent), hydro (6 per cent), renewable energy (1 per cent) and nuclear (1 per cent). South Africa is the world’s seventh-largest coal producer and accounts for 94 per cent of Africa’s coal production.
Africa’s renewable energy resources are diverse, unevenly distributed and enormous in quantity — almost unlimited solar potential (10 TW), abundant hydro (350 GW), wind (110 GW) and geothermal energy sources (15 GW). Energy from biomass accounts for more than 30 per cent of the energy consumed in Africa and more than 80 per cent in many sub-Saharan African countries. Sub-Saharan Africa has undiscovered, but technically recoverable, energy resources estimated at about 115.34 billion barrels of oil and 21.05 trillion cubic metres of gas.
Do African leaders see some of the controversial issues, in the same way, as you have discussed above?
In my opinion, African leaders do take heed of what has been discussed above but are too slow to tackle the issues, which eventually then build up. The effect of that is that once they have eventually tackled the first problem, they realize others have piled up and have to continue digging. Leaders also need to start bringing young people to the table who have fresher eyes and valuable contributions because of the times they live and are growing up in. A major contribution to that is the internet.
How do you assess the impact of energy deficit most especially within the context of the fourth industrial revolution? Is energy finance the determining factor here?
Firstly, we need good governance that creates an enabling environment for widespread economic growth and improved infrastructure. African leaders need an unwavering determination to make Africa work for us, even when there are missteps and things go wrong.
Without stability, projects and contracts cannot take effect. A recent example is an insurgency in Mozambique which has claimed lives but put a halt to a project which would have had a positive impact not only on Mozambique and its region but the entire continent. But now, we have to look ahead and not dwell on the shortcomings or pitfalls.
In order to change the tide and spur a post-pandemic recovery in the energy sector that will also enhance overall economic growth in Africa, African leaders must double their efforts to attract investment into their energy sectors. They must put in place timely and market-relevant strategies to deal with external headwinds like the drive to decarbonize globally and evolving demand patterns for energy internally and hydrocarbons globally. They must end restrictive fiscal regimes, inefficient and carbon-intensive production, cut bureaucracy and other difficulties in doing business that is preventing the industry from reaching its full potential.
What individual countries have set exceptional examples, at least, in offering energy and its utilization both in the urban cities and remote towns?
Consider the impact of energy deficiency. Approximately 840 million Africans, mostly in sub-Saharan countries, have no access to electricity. Hundreds of millions have unreliable or limited power at best.
Even during normal circumstances, energy poverty should not be the reality to most Africans. The household air pollution created by burning biomass, including wood and animal waste, to cook and heat homes has been blamed for as many as 4 million deaths per year. How will this play out during the pandemic? For women forced to leave their homes to obtain and prepare food, sheltering in place is nearly impossible. What about those who need to be hospitalized? Only 28 per cent of sub-Saharan Africa’s health care facilities have reliable power. Physicians and nurses can’t even count on the lights being on, let alone the ability to treat patients with equipment that requires electricity — or store blood, medications, or vaccines. All of this puts African lives are at risk.
Africa does not need social programs, even educational programs, that come in the form of aid packages. What’s more, offering Africa aid packages to compensate for a halt or slow-down of oil and gas operations will not do Africans any good. This is not the time for Africa to be calling for more aid.
Africa has been receiving aid for nearly six decades, and what good has it done? We still don’t have enough jobs. Investment creates opportunities. We, as Africans, must be responsible. Our young people should be empowered to build an Africa we all can be proud of. Relying on the same old policies of the past, relying on aid, simply isn’t going to get us there.
Do you support expert views about “energy mix” — a combination of wind, solar, hydro and nuclear power? Why nuclear is still bug down with problems in Africa?
Straightway I would like to say yes. Africa must continue to bank on all forms of energy to address its shortfall in Energy production and distribution. From country to country, access to the generating resource will differ. Therefore, countries should focus on those resources to which they have easy and affordable access. Nuclear continues to be least accessible in Africa, due to the absence of technology and the high upfront construction costs associated with building such plants.
Africa has an almost unlimited renewable energy capacity, abundant access to solar, wind, hydro, and geothermal sources; however, except for a few large-scale projects, such potential is not adequately developed. What the continent needs is to reach a balance between reaching its energy transition goals and exploiting its natural resources, particularly natural gas, to ramp up power generation, generate jobs, and as a source of revenue. Natural gas’ potential to breathe new life into struggling African economies that are still reeling from the brutal economic impacts of the COVID-19 pandemic.
Natural gas, affordable and abundant in Africa, has the power to spark significant job creation and capacity-building opportunities, economic diversification and growth. I am not saying that African nations should continue oil and gas operations indefinitely, with no movement toward renewable energy sources. I am saying that we should be setting the timetable for our own transition, and we should be deciding how it’s carried out. What I’d like to see, instead of Western pressure to bring African oil and gas activities to an abrupt halt, is a cooperative effort.
A number of foreign countries and private energy investing giants have shown interest in the energy sector. How do you assess the dynamics of their performance on the continent?
Local content is a pillar of the industry’s sustainability efforts. Sustainable development of African economies can only be attained by the development of local industry — by investing in Africans, building up African entrepreneurs and supporting the creation of indigenous companies. Oil companies have an unmatched ability, and a profound responsibility, to support countries in shaping an economy that works for all Senegalese and preserves their freedoms.
What is your view of Russia, considered as an energy giant, for instance, teaming up with China in Africa? Can both have a unified approach to collaborating on issues of energy projects in Africa?
First and foremost, Africa has already made an indelible mark in the oil and gas industry. I think Russian companies have to do more to really get involved. I always say that Africans want to get married, but Russians just want only to date. We need to change that and become more accountable. Both our compatriots expect better and more from our energy sectors.
As far as China and Russia are concerned, if both countries can avoid applying a “one size fits all” approach, so much good can come out of our oil and gas relationship with Russia. Africa has a lot to gain from Russian involvement and vice versa. Both must work towards empowering each other with concrete projects that bring benefit to investors and communities in which projects are situated. To be fair, positive developments from Russia and China don’t go unnoticed as their active presence in the continent leaves room for greater opportunities towards the energy mix.
By Adedapo Adesanya
Eight key producers in the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) on Thursday agreed to raise combined crude oil output by 411,000 barrels per day.
Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually to review global market conditions and decided to raise collective output by 411,000 barrels per day, starting in May.
The group was widely expected to implement an increase of just under 140,000 barrels per day next month.
The May hike agreed on Thursday is “equivalent to three monthly increments,” OPEC said in a statement, adding that “the gradual increases may be paused or reversed subject to evolving market conditions.”
The eight OPEC+ producers this month started gradually unwinding 2.2 million barrels per day of voluntary cuts undertaken independently from the production strategy of the broader 22-member OPEC+ alliance, which has roughly 3.66 million barrels per day of separate cuts in place until the end of 2026.
CNBC reported that the Thursday meeting was the first one attended by Mr Erlan Akkenzhenov, the new energy minister of Kazakhstan, which has struggled with producing above its assigned quota.
Without referencing individual countries like Nigeria, OPEC said in its Thursday statement that the May output hike will “provide an opportunity for the participating countries to accelerate their compensation” by way of additional production cuts in line with overproduction.
The Thursday decision was taken against the backdrop of broader market trouble triggered by sweeping tariffs on key trade partners unveiled on Wednesday by the administration of US President Donald Trump.
Mr Trump, who has been simultaneously championing higher US oil output, signed a reciprocal tariff policy on Wednesday.
The American President said his plan will set a 10 per cent baseline tariff across the board.
The plan imposes steep tariff rates on many countries, including 34 per cent on China, 20 per cent on the European Union, and Nigeria got 14 per cent.
By Kestér Kenn Klomegâh
Growing impatience over the fragile security situation in the Sahel region and collective anxiety to lift up and strengthen their Confederation of Sahel States (AES), some prefers the Alliance des États du Sahel (translates in English as the Alliance of Sahel States), the three Foreign Ministers of Burkina Faso, Mali and Niger embarked on a fresh trip to Moscow.
Meetings, held in early April 2025, with Russian Foreign Minister Sergey Lavrov undoubtedly gave a strong boost to the AES relations, marking the latest new chapter in building sustainable security ties and economic cooperation.
Ahead of the meeting, the Russian Foreign Ministry said the Sahel foreign ministers prioritized perspectives on regulating their political crisis as well as focusing on economic spheres. According to Russia’s MFA, the three African countries’ foreign ministries indicated in a joint statement that the joint visit as the first session of “AES-Russia consultations” which aims at finding appropriate pathways in fighting jihadist insurgencies that has spread across the region south of the Sahara.
Burkina Faso, Mali and Niger currently run by military governments that have taken power in coups between 2021 an 2022, have formed an alliance known as the Confederation of Sahel States (AES). By creating their own bloc, it exposes Economic Community of West African States (ECOWAS) weaknesses and its long-term inability and incompetency to deal with regional problems, particularly rising security through mediation.
The French grouping later kicked out French and other Western forces and conveniently turned towards Russia for military support. Their foreign ministers will visit Moscow on April 3 and 4 and hold meetings with Russian Foreign Minister Sergei Lavrov at his invitation, the statement said.
“The Moscow meeting represents an important step in establishing strategic, pragmatic, dynamic and supportive cooperation and partnership relations in areas of common interest between the AES and Russia,” the ministries said.
Basic research and review show that besides instability, these countries are engulfed with various socio-economic problems primarily due to the system of governance and poor policies toward sustainable development. And Russia’s renewed and full-fledged interest is primarily focused on uprooting French domination, and support the development goals of these French-speaking West African countries in the Sahel region.
For fear and concerns about the new rise of terrorism and for the sake of deeper cooperation and integration, the three Sahelian countries have turned to Russia, and as expected Russia has since offered tremendous assistance. As a follow up, the early April meetings in Moscow, several critical issues are on the agenda: military assistance to fight growing terrorism, and efforts to strengthen political dialogue and promote concrete partnerships relating to trade and the economy in the region.
The AES has multitude of obstacles, the main problems emerged after exiting out of ECOWAS, the regional organization consisting 16 West African states. Finance is another hurdle among others. Nevertheless, Russian Foreign Ministry explained in a statement posted on its website, that Russia’s military-technical cooperation with African countries is primarily directed at settling regional conflicts and preventing the spread of terrorist threats and fighting the growing terrorism in the continent.
Russia’s MFA has earlier assured: “we will continue supporting it with the supply of arms and hardware and personnel training, including peacekeepers, as it is very important to help put an end to this evil and other challenges and threats, including drug trafficking and other forms of organized crime.”
With regards to financing AES, the bloc on March 31st introduced 0.5% levy on imported goods to finance their newly formed three-state union, following their withdrawal from ECOWAS. The agreed levy took immediate effect and applies to all imported goods except humanitarian aid.
It also implied that the move officially ended free trade with West Africa’s ECOWAS bloc, deepening the rift between the three and regional democracies like Nigeria and Ghana. Worth noting that ECOWAS sanctions imposed to force a return to civilian rule have had little impact, as the Sahel alliance continues to strengthen economic and security cooperation.
Burkina Faso, Mali and Niger are among many African countries bartering natural resources. There have been cases, where huge natural-resource projects were given away without cabinet discussions and parliament’s approval.
Apparently, these agreements on resources extraction hardly deliver broad-based development dividends. Nevertheless, Burkina Faso, Mali and Niger have bilateral agreements with Russia. The three have offered complete access to exploiting their natural resources in exchange for military equipment and weaponry as well as military training. Burkina Faso signed a Memorandum of Understanding on nuclear energy with the State Atomic Energy Corporation (Rosatom) during the Russia-Africa summit held in St. Petersburg in July 2023.
Russian President Vladimir Putin mentioned security issue and economic cooperation during his opening and closing speeches at the summit and even previously, indicating its importance on Russia’s agenda with Africa. In fact, there were five key summit documents and one of them focuses on ‘Strengthening Cooperation to Combat Terrorism’ which neatly relates to this article theme here under discussion.
Although Burkina Faso, Mali and Niger have abundant human and natural resources, offering tremendous potential for rapid growth, there are existing deep-rooted challenges – environmental, political and security – that may affect the prosperity and peace of the region. Therefore, external support is badly required and which is why Burkina Faso, Mali and Niger have to look up to Russia as their economic and security saviour, particularly this changing geopolitical situation in the world.
According to various narratives, Russia has embarked on fighting “neo-colonialism” which it considers as a stumbling stone on its way to regain a part of its Soviet-era influence in Africa. Russia has sought to convince Africans over the past years of the likely dangers of neocolonial tendencies perpetrated by the former colonial countries and the scramble for resources on the continent.
In pursuit of its geopolitical interest, Russia has ultimately begun making inroads into the Sahel region, an elongated landlocked territory located between North Africa (Maghreb) and West Africa, and also stretches from the Atlantic Ocean to the Red Sea.
With human and natural resources, Burkina Faso, Mali and Niger China are undertaking giant economic and social transformation. Quite essentially, Burkina Faso, Mali and Niger, within the geopolitical reconfiguration in West Africa, are desirous to ensure their political sovereignty, engage in development which Russia has expressed interest to support.
Certainly, the three have pledged to work together to find common solutions, and are oriented towards multipolarity. In this way, they could consolidate its integration to become a center of influence, diversify the economy to become prosperous in the region. Burkina Faso, Mali and Niger are expected to continue to advance their collective interests for the purposes of their development, prosperity and stability.
By Adedapo Adesanya
Mali, Burkina Faso and Niger – all under military rule- have announced a new 0.5 per cent levy on imported goods from Nigeria and other Economic Community of West African States (ECOWAS) member-nations.
The development comes as they seek to fund a new three-state union after leaving the larger regional economic bloc, they said in a statement.
Recall that the West African regional bloc, in January, in the spirit of regional solidarity, said they will recognise the national passports of the three countries bearing the ECOWAS logo until further notice and will allow for free trade with the three states under military rule and free movement will happen without visas.
However, the three nations, according to an official statement, said the levy was agreed on Friday and will take effect immediately, noting that it will affect all goods imported from outside the three countries but will not include humanitarian aid.
Funds from the levy would be used to “finance the activities” of the bloc, the group said, without giving details.
The move ends free trade across West Africa, whose states have for decades fallen under the umbrella of the ECOWAS, and highlights the rift between the three states that border the Sahara Desert and influential democracies like Nigeria and Ghana to the south.
The three countries, each ruled by military juntas that came to power through recent coups in 2023, had established the Alliance of Sahel States as a security agreement following their exit from ECOWAS bloc.
Over time, this alliance evolved into an aspiring economic union with plans to promote deeper military and financial integration, including introducing biometric passports.
Last year, the three nations left ECOWAS, citing claims that the bloc had not sufficiently supported them in fighting Islamist insurgencies and addressing insecurity in their countries.
The three countries, which are former colonies of France, have lamented the excesses and involvement of the European country on its affairs and resources. It has since built new relationships with Russia, Turkey, and Iran.
The three Sahelian countries have teamed up to form a separate confederation called the Alliance of Sahel States (AES).
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