Energy for growth and poverty reduction in developing nations

On the matter of energy as a catalyst for alleviating poverty, I will dwell briefly on issues facing developing countries, Sub-Saharan African countries in particular, and what I believe should be a global response to the energy and environmental crisis in that part of world.

Countries in Sub-Saharan Africa currently are facing an energy and environmental crisis: By 2030, it is estimated that there will be 500 million people with no access to electricity and modern energy services. Electricity access rates, especially in rural areas, are as low as 2-3 percent.

Providing Africans access to modern infrastructure is a priority for the region, and many of these developmental benefits can be pursued efficiently with low-carbon strategies, e.g. through accelerated development of regional infrastructure to efficiently generate – and transport – electricity from hydroelectric, natural gas and clean coal (including readiness for carbon capture and storage); energy efficiency; efficient cook stoves.

More than 25 countries in Sub-Saharan Africa have some form of energy crisis and are increasingly turning to developed countries and multilateral and regional financial institutions for assistance. This is an opportunity to help developing countries assess and invest in new low-carbon infrastructure as they seek to meet the aspirations of their people.

Another major challenge that most of the oil-importing developing countries face is how to meet the increasing cost of imported oil. In addition to improved fiscal and macroeconomic management, developing countries need balance of payments support to ride out the crisis and the constraints that the high cost of imported energy imposes on resource allocation for economic and social development.

Daily Star