Africa’s Energy Expenditure to Hit $110bn in 2024 – IEA

Africa’s energy expenditure in 2024 will reach $110 billion, according to intergovernmental organisation, the International Energy Agency (IEA).

The IEA’s World Energy Investment 2024 report shows that Africa’s fossil fuel supply and power will account for $70 billion of the continent’s energy expenditure.

In its findings, the IEA showed that Africa’s annual energy investments are equivalent to roughly 1.2% of the continent’s GDP and insufficient to achieve 2030 universal access and climate-related goals. Up to $200 billion in investment will be required per annum through 2030 to satisfy the increasing energy demand driven by population growth.

The report shows that Africa must accelerate investments in grid modernization and expansion, increase grant funding for vulnerable households and de-risk projects to attract and scale up renewable energy funding.

It also showed that global investment in upstream oil and gas is set to hit $570 billion this year, representing an increase of 7% compared to 2023. Around 40% of total upstream investment is expected to be allotted to existing fields while approximately 33% will be invested in frontier fields. The remaining 7% will be invested in unconventional petroleum-bearing formations.

APO/Hauwa Abu