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Africa is simply tired of being in the dark . That is why the African Development Bank has launched a New Deal for Energy in Africa , to fast-track universal access to power by 2025 : lighting up and powering Africa in 10 years , not 50 years .
The African Development Bank will significantly raise its level of investment in the energy sector . We will look at different ways of delivering energy : grid , mini-grid , and offgrid systems . The African Development Bank will launch a Bottom of the Pyramid Energy Financing Facility for Africa to ensure that inequality of access to energy is addressed , especially for millions of energy-poor households in rural areas . For them , the cost of the last mile of connection to national grids is expensive – and will take time . Today , the revolution on off-grid and mini-grid systems provides a unique opportunity to shortcircuit their access to affordable energy .
Just like it occurred in the mobile phone revolution that swept across Africa – making Africa the leader in the world in terms of mobile phone ownership – we are at the cusp of yet another revolution : clean energy revolution from renewable energy delivered via decentralized energy systems . We must bring energy closer to people and we must ensure that it is affordable . To do so , we must take full advantage of innovations such as smart grid and smart metering technologies .
We will work hand in hand with our partners – including the G20 , the African Union , the Economic Commission for Africa , and others to increase both the level of aspiration and the level of investment in the energy sector . We will build on the successes of key initiatives such as President Obama ’ s Power Africa Initiative , ensuring that we are harnessing our collective efforts to tackle this critical challenge . As host of the SE4All Africa Hub in partnership with the African Union , the New Partnership for Africa ’ s Development ( NEPAD ) and the United Nations
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Development 7 Programme ( UNDP ), the African Development Bank is ready to do even more .
The African Development Bank is playing a key role in the Africa Renewable Energy initiative , being supported by the G7 , which aims at accelerating access to renewable energy in Africa and reducing energy poverty . This initiative was endorsed last week by the Committee of African Heads of State on Climate Change and will be an important contribution of Africa at COP21 in Paris in December . We therefore look forward to the support of the G20 and to realizing the synergies with the G20 Action Plan .
Unlocking Africa ’ s energy potential requires that we coordinate better and deliver faster – and at scale . We must not dissipate our efforts . To that end , the African Development Bank , in alliance with all the major actors in the energy space in Africa , will be launching a Transformative Partnership on Energy for Africa .
Together , we must now substantially raise our aspirations and financing for energy in Africa . We mustmobilize , more than ever before , a strong commitment by African governments to devote a greater share of their GDP to the energy sector . Our greater aspirations will need to be matched by greater aspirations from governments . We must work collectively with African governments to address fundamental reforms of the energy sector , especially on appropriate pricing for energy , reforms of energy subsidies , restructuring of power utilities and policy , legal and regulatory environment to improve incentives for greater private sector investments in the energy sector . And we must mobilize strong political will – within and outside of Africa – to solve the energy problem facing Africa .
There is no doubt that a lot of financing will be needed . Together , we must close the $ 55 billion financing gap for energy in Sub-Saharan Africa . And we must raise our level of commitment to
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meet the $ 22 billion needed to support universal access to energy in the region .
These numbers should not throw us off . Africa and the global community have what it takes to meet this challenge . Domestic resource mobilization holds the key . If Africa only uses 10 % of the total amount of $ 500 billion in tax revenues collected every year on energy , we can solve the problem . If Africa ends the $ 60 billion in the illicit capital flows out of the continent , we will solve the problem . And if the developed countries meet their commitments to devote 0.7 % of their Gross National Income to development assistance , which will generate $ 168 billion , we will solve the problem .
This is why the strong commitment by the G20 to supporting Africa on energy access is highly commendable . I congratulate the G20 Energy Ministers for their commitment to the continent . The children in the town of Bo and all across Africa will remember your efforts .
And let me specially congratulate China on its upcoming Presidency of the G20 . The African Development Bank stands fully ready to work with the G20 for the success of this initiative . Working together with the Transformative Partnership on Energy for Africa , we will leverage greater resources and secure greater commitments by the governments for action . Resolving Africa ’ s energy challenge will be the greatest success for COP21 . It is critical that COP21 is a huge success , and it is my hope that we can band together and work together to be able to significantly leverage our collective efforts for impact in Africa .
Not having energy is not an option for Africa . I am absolutely convinced that working together we can solve this problem . Starting now .
Let us light up and power Africa ! Thank you very much .
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