Doha, July 03 (QNA) - Sub-Saharan African countries spare no effort in addressing the energy sector deficit that afflicts many of these resource-rich nations, endowed with vast energy and natural wealth.

However, a host of challenges hinder these countries from fully benefiting from their resources and achieving a qualitative leap across various development sectors.

As part of their vigorous efforts and ongoing endeavors to confront challenges and overcome energy and renewable energy issues, the 24th NOG Energy Week Conference and Exhibition is being held in the Nigerian capital, Abuja, from Jun. 29 to Jul. 3. This important event brings together energy leaders and policymakers to discuss the challenges and opportunities in the region's growing energy sector.

The conference aims to enhance regional cooperation and explore ways to achieve energy security, sustainable development, regional collaboration, investment in the energy sector and renewable energy projects, policies and legislation, knowledge transfer, and other topics related to the energy sector.

According to World Bank data, the gross domestic product of Sub-Saharan African countries reached $1.96 trillion last year. These 48 countries span the area south of the Sahara Desert from East Africa through Central to West Africa, with a population of 1.29 billion people. Electricity services are available to about 53.30 percent of the total population of these countries.

Participants in the 24th NOG Energy Week Conference and Exhibition were keen to discuss the challenges facing energy security in the region and how to ensure stable and reliable energy supplies in Sub-Saharan African countries. The transition to renewable energy sources such as solar, wind, and geothermal energy is one of the most important topics for African countries.

The conference addressed ways to strengthen cooperation among countries in the region in the field of energy, exchange expertise and knowledge, and develop joint projects. Investment opportunities in the energy sector were also reviewed, including infrastructure and renewable energy projects, which would contribute to the development of the energy sector in the region and the achievement of sustainable development goals.

At the conclusion of the conference, which was attended by energy ministers from more than 35 Sub-Saharan African countries and many international organizations and representatives of global energy companies, participants emphasized the importance of accelerating the pace of a just energy transition in the continent's countries and boosting investments in renewable energy, with a focus on universal electricity access by 2030, in line with the Sustainable Development Goals, particularly Goal 7 on clean energy.

The conference recommended encouraging investments in renewable energy and called for increased financing of solar, wind, and geothermal energy projects, especially in underserved rural areas. It also urged the private sector to engage in partnership projects with the public sector, reform regulatory and legal frameworks, and update national energy policies to create an investment-friendly legal environment and ensure transparency in contracts and financing.

The conference also emphasized the importance of strengthening electricity interconnection networks between countries and expanding regional interconnection projects such as the West and Central Africa interconnection project to enhance energy security and reduce costs. It also called for focusing on efforts to transition to gas as a transitional energy source. New initiatives were launched in cooperation with international financial institutions such as the African Development Bank and the World Bank to provide flexible financial tools that support small and medium-sized energy projects.

Last year, the World Bank announced a partnership with the African Development Bank Group as part of an ambitious effort to provide electricity to about 300 million people in Africa by 2030. The World Bank Group will work to provide electricity to about 250 million people through distributed renewable energy systems or the distribution grid, while the African Development Bank Group will support an additional 50 million people.

According to World Bank data, more than half a billion people in Sub-Saharan Africa face the risk of not having access to electricity, with about 400 million of them living in fragile countries affected by conflict and violence.

The World Bank Group indicated that it is working to implement innovative financial and technical solutions necessary to accelerate electricity provision at rates exceeding population growth. It stressed that without access to sustainable, affordable, and uninterrupted energy, the region will not achieve its development aspirations or the desired economic transformation to lift millions out of poverty.

In this context, the World Bank Group confirmed that it discussed with development partners, private sector representatives, and ministers of the concerned countries ways to expand the scope of solutions and investments that will help deliver electricity to millions of people in Africa and transform promising African economies. 

Regarding the assessment of the current energy situation in Sub-Saharan African countries, Engineer Nasser Jaham Al Kuwari, an expert in the oil and gas sector, believes that these countries stand today at a crossroads in the field of energy.

Speaking to Qatar News Agency (QNA), Al Kuwari affirmed that some countries possess enormous oil and gas wealth, such as Nigeria and Angola, which already produce significant quantities of oil. He added that Nigeria, for example, produces about 1.4 million barrels of oil per day and has one of the largest gas reserves on the continent, but the picture is not entirely rosy.

He noted that there is a clear lack of utilization of the resources available to African countries, especially in the fields of electricity and renewable energy. Nearly 600 million people in Africa still do not have regular access to electricity despite the abundance of resources. He pointed out that renewable energies have started to make inroads, but their contribution remains limited in most countries, with the exception of successful experiences such as Kenya.

Regarding the challenges facing energy production in Sub-Saharan African countries, Al Kuwari said that the challenges are numerous and complex. Among the most prominent are weak infrastructure, particularly in electricity networks and distribution, lack of financing, investment risks that worry major companies, weak legislation, the absence of a stable regulatory environment that encourages investment, widespread corruption, and poor governance. These factors lead to revenue losses and project delays, in addition to the near-total reliance on fossil fuels without real diversification toward clean sources.

As for the economic future of Sub-Saharan African countries if they manage to address these challenges, Engineer Nasser Jaham Al Kuwari believes that a promising economic future awaits the African continent. He considers that providing electricity alone could completely transform the economy. He said that there will be growth in GDP, an increase in manufacturing, and the creation of millions of jobs. Some estimates suggest that regional GDP could increase by more than USD 400 billion annually over the next two decades if energy supplies improve and are effectively integrated into development projects.

The oil and gas expert added that energy is not a separate sector but rather the lifeblood of all other sectors. In agriculture, it contributes to crop cooling and the expansion of irrigation systems. In industry, it reduces costs and stimulates local production. It also leads to the development of the health and education sectors by enhancing the efficiency of hospitals, schools, and research centers. He stressed that the more the energy sector performs well, the more we see parallel improvements in other sectors.

He considered that the agreement signed by Sub-Saharan African countries to establish the African Continental Free Trade Area represents an important strategic step that could help reduce customs costs on energy equipment and encourage the establishment of cross-border energy projects, such as electrical interconnection between countries. It also encourages investors to enter the African market with greater confidence, as it has become a unified market with more than a billion consumers. However, he cautioned that success depends on practical implementation and the willingness of countries to facilitate procedures and unify legal and regulatory frameworks so that agreements do not remain mere ink on paper.

Engineer Nasser Jaham Al Kuwari concluded his remarks to QNA by confirming that Sub-Saharan Africa faces a rare opportunity: either to invest in energy smartly and achieve comprehensive developmental progress, or to remain trapped in a cycle of recurring challenges. He added that change is possible, and the future is within reach if there is political will and a clear vision.

Economists and those interested in the economic reality of Sub-Saharan African countries have long called for several policy measures to encourage stronger and more equitable growth. These include restoring macroeconomic stability, enhancing intergenerational engagement, supporting market access, and ensuring that fiscal policies in many African countries do not overburden poor and low-income groups. (QNA)