Page 490 - 2016 - Vol. 40

I. Introduction
Many cases have proven that energy can be a strong

driver for both GDP growth and economic development. For
example, energy from coal and investment in the biofuel sector
has been major contributors to the industrial revolution and
economic development in Britain and Brazil, respectively. Also,
increased provision and use of energy services is an indication
of enhanced economic development. For example, per capita
energy consumption in the United States was nearly 13 times
greater than that in India in 2012(1).

During the past decade, Africa witnessed positive
demographic trends, accelerated economic growth, increasing
urbanization, improving political environment and increasingly
welcoming business climate. All these factors increased
development prospects and spurred energy demand. For
instance, demand for energy in sub-Saharan Africa (SSA)
grew by around 45% from 2000 to 2012 (2) . Besides, electricity
demand is going to reach double its value over the period 2010
and 2035 as a result of 3.8% average annual rise in GDP of
Africa over the same period (3) .

Still Africa has the world’s lowest electricity access rates.
In 2013, electricity access rates were 43% for whole Africa and
32% for SSA compared to 86%, 95%, and 92% for Developing
Asia, Latin America, and Middle East, respectively. In the same
year, rural electrification rates reached 26% for whole Africa and
17% for SSA compared to 78%, 85%, and 79% for Developing
Asia, Latin America, and Middle, respectively (see table (1)).

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