Energy Deficiency Restricts Development Progress in Africa

By William Kabagambe

In the twenty-first century, access to energy is vital to society’s basic needs. Modern energy sources are critical inputs to economic development, yet 1.2 billion people around the world live without access to electricity. In Africa alone, 600 million people do not have access to electricity, and even those with access use a fraction of the power that US citizens do.

Demand for energy in Sub-Saharan Africa (SSA) in particular is growing; the region is projected to consume close to 1,600 terawatt hours by 2040, four times the amount used in 2010. Despite the increasing demand, more than half of SSA’s nations are currently experiencing power shortages and rolling blackouts. Without reliable energy from the grid, most business and families must rely on generators. In SSA, generators can cost between three to six times more than they do in the rest of the world. Given the high costs of electricity generation, development objectives are increasingly difficult to attain, resulting in unemployment and economic stagnation. With growing populations and declining economic growth, the challenges to improved energy access are numerous.  SSA must create critical infrastructure, implement effective policy and promote new sources of investments if it is to unlock its development potential.

A woman uses fuel to cook in Burkina Faso. The WHO estimates that around 3 billion people globally still cook and heat their homes using solid fuels in open fires and leaky stoves. Image courtesy of Flickr user TREEAID under a Creative Commons Attribution 2.0 Generic License.

A woman uses fuel to cook in Burkina Faso. The WHO estimates that around 3 billion people globally still cook and heat their homes using solid fuels in open fires and leaky stoves. Image courtesy of Flickr user TREEAID under a Creative Commons Attribution 2.0 Generic License.

Continue reading

A Window of Opportunity: Development Finance in Afghansitan

By Michael Jacobs

Last month’s signing of the long-delayed U.S.-Afghan Bilateral Security Agreement (BSA) allows American troops to remain in Afghanistan beyond 2014, providing a measure of security and stability for the country. The BSA is significant, but eventually American troops will head home. While U.S. military advisers and intelligence capabilities will likely remain in place for years, sometime soon Afghans will be substantively responsible for their own security and stability.

The BSA provides an opportunity for the U.S. to secure the progress we’ve established in Afghanistan over the past thirteen years.  So far the cost has been high in both dollars and lives, and as we’ve seen in Iraq, those gains can be erased very quickly. At a minimum, Afghanistan’s long-term stability will hinge on a capable military and an inclusive government, but also on broad economic development: countries with an additional 2 percentage points of economic growth sustained over 10 years have been shown to have their risk of civil war reduced by 28% when compared to the risk of civil war in a typical low-income country.

U.S. Ambassador James B. Cunningham signs the (BSA) with Afghan National Security Adviser Hanif Atmar

U.S. Ambassador James B. Cunningham signs the BSA with Afghan National Security Adviser Hanif Atmar (September 30,2014)

Continue reading