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PUBLISHER’S NOTEAfter COP26: why gas shouldbe part of the continent’sclean energy futurePUBLISHER’S NOTEFRICA is the continent likely to bear thebrunt of the effects of climate change evenAfrica A bucks globalthough studies show it has contributed leastto the crisis.economic trendThe consensus at this year’s COP26 climate conference in Glasgow, Scotland was a blanketban on fossil fuels that would preclude any new projects involving natural gas. BurningIn natural 2018, gas emits six of carbon the 10 dioxide fastest-growing (CO2), a long-lived greenhouse gas. Facilities that produce,transport economies and consume in the natural world were gas sometimes in leak methane, a short-lived but even morepotent Africa, greenhouse according gas. So to the blocking World money Bank, for new gas pipelines, gas-fired power plants, orgas-consuming with Ghana industries leading the in Africa pack. might With seem like good environmental policy, especially asGDP we seek growth to accelerate for the continent the global projected transition to a cleaner energy future in the wake of Covid-19.accelerate But some experts to four disagree. per cent in 2019 and 4.1per They cent maintain 2020, that Africa’s a prohibition economic funding growth for gas-fuelled power in Africa won’t work forstory climate continues mitigation apace. — and Meanwhile, it will hurt the World continent’s Bank’s development. 2019 Doing Worse, Business because Index gas has areveals pivotal that role to five play of in the Africa’s 10 most-improved transition to clean countries energy, are a in ban Africa, now could and one-third slow the adoption ofall of reforms renewables recorded and reinforce globally a global were energy in sub-Saharan double standard. Africa.And there are many reasons why gas should have a bright future in Africa. The continentWhat is starting makes from the such story a low more energy impressive use and and emissions heartening base that is that there the are growth few gains from– squeezing projected out to gas. be broad-based Here’s how low: – is if being all of achieved Sub-Saharan in a Africa challenging tripled global its electricityenvironment, consumption overnight bucking the using trend. only natural gas, the additional CO2 would be equivalent to just1 percent of global emissions.In the Cover Story of this edition, Dr. Hippolyte Fofack, Chief Economist at theAfrican Electricity Export-Import demand may Bank be plateauing (Afreximbank), in the US analyses and Western the Europe. factors But underpinning Africa, rising thisperformance. incomes, growing Two populations factors, in and my rapid opinion, urbanisation stand out will in Dr. combine Hippolyte’s to push analysis: electricity demandtrade to at least between double Africa (or possibly and China triple and or the more) intra-African by 2040. Barring cross-border financing investment for all fossil and fuelswould have the very concrete effect of slowing poverty reduction, raising energy costs on theinfrastructure development.most vulnerable people, and suppressing incomes and job creation.Much Ruling has out been gas would said and hamstring written African about countries China’s ever-deepening as they try to adapt economic to the major foray impacts intoAfrica, of climate especially change like by Western droughts, analysts floods and and soaring commentators temperatures. who Gas have is been particularly sounding wellsuitedbells to energy-intensive about re-colonisation adaptation of technologies, Africa, this time such by as steel the Chinese. and concrete But for empirical resilientalarmevidence infrastructure, paints desalination a different for picture. expanded freshwater supply, and cold storage and airconditioning.Despite the decelerating global growth environment, trade between Africa andCoal, geothermal, nuclear and hydro power stations all incur huge upfront capitalChina increased by 14.5 per cent in the first three quarters of 2018, surpassinginvestments. By contrast, gas turbines are cheap and modular, which helps them sidestep thethe growth rate of world trade (11.6 per cent), reflecting the deepening economichuge cost overruns that plague large coal-fired power projects. And they are less pollutingdependency than the default between modular the energy two major source trading in emerging partners. markets – the diesel generator.Empirical Natural gas evidence is not just shows for electricity; that China’s it's also domestic a valuable investment feedstock has for become making highly fertilizer orlinked other petrochemicals with economic and expansion efficient in Africa. source of A process one percentage heat for high-energy point increase industries likein cement China’s or steel domestic production. investment For African growth countries is associated with industrial with an average ambitions of (that 0.6 is, all ofpercentage them), gas will point be increase an indispensable overall input. African exports. And, the expected economicdevelopment Nigeria, Mozambique, and trade Ghana, impact Senegal of expanding many Chinese more countries investment have on their resource-rich own significantAfrican natural gas countries, resources especially that they oil-exporting are already developing, countries, often is even in partnership more important. with US andEuropean companies. Asking these countries to leave this resource in the ground and foregoThe income, resilience or to export of African all their economies gas to richer can regions, also be seems attributed indefensible, to growing especially intra-African given that...cross-border investment and infrastructure development. A combination of theGas accounted for nearly half of the global increase in energy demand in 2018. The Unitedtwo factors is accelerating the process of structural transformation in a continentStates, China, and large parts of Asia and Europe are all betting heavily on gas as a corewhere component industrial of their output energy and futures, services with account important for volumes a growing sourced share from of GDP. Africa African as liquefiedcorporations natural gas (LNG). and industrialists Indeed, French which energy are giant expanding Total has their inked industrial the financing footprint for a across $20Africa billion and LNG globally project in are Mozambique. leading the Closing diversification off gas consumption from agriculture to African into higher countries justvalue because goods they in are manufacturing late adopters with and more service limited sectors. financing These options industrial for building champions out domesticare gas carrying infrastructure out transcontinental is a politically and operations, ethically fraught with investment stance. As a holdings senior African around policymakerwith once a said: strong “We presence will be aggressive in Europe in and promoting Pacific the Asia, energy together transition, account but for we more cannottheglobe,than accept 75 climate per cent colonialism.” of their combined activities outside Africa.Innovation can position gas to support a future zero-carbon energy system. Methane leaksA survey of 30 leading emerging African corporations with global footprints andare starting to be monitored by satellite, potentially addressing a serious environmentalcombined revenue of more than $118 billion shows that they are active in severalconcern about gas. Over the longer term, pipelines and storage facilities needed for gasindustries, including manufacturing (e.g., Dangote Industries), basic materials,utilisation today could allow future excess energy from off-peak wind and solar to be storedtelecommunications as “renewable gas” for (e.g., later use. Econet, Emerging Safaricom), technologies finance for (e.g., carbon Ecobank) capture and and storage oil (CCS)and might gas. also In allow addition gas-fired to mitigating power plants risks to highly operate correlated with a low or with zero African carbon economies,footprint.these emerging African global corporations are accelerating the diversification ofThe above is by no means exhaustive and given the seriousness of climate change, “Bansources of growth and reducing the exposure of countries to adverse commodityall fossil fuels, everywhere” is an intuitively appealing position. When applied to energydeprivedof trade. regions like Africa, however, ruling out natural gas will do far more harm than goodtermsThis on environmental, makes very health, bullish and about development Africa! fronts. In the process, it will convince policymakerson the continent, perhaps not for the first time, that outside investors do not have theirbest interests at heart.PublisherJon Offei-AnsahEditorPublisher Desmond DaviesJon Offei-AnsahContributing EditorsEditorStephen WilliamsDesmond DaviesProf. Toyin FalolaDeputy Tikum Editor Mbah AzongaAngela Contributors CobbinahContributing Justice Lee Editor AdoboeStephenChief ChuksWilliamsIloegbunamJoseph KayiraDirector, Zachary Special Ochieng ProjectsOlu OjewaleMichael OrjiOladipo OkubanjoContributors Corinne SoarKennedy OliloJustice Lee AdoboeChuks Iloegbunam DesignerJoseph KayiraSimon BlemadzieZachary OchiengOlu OjewaleCountry RepresentativesOladipo OkubanjoCorinne South Soar AfricaEdward Walter ByerleyTop Dog Designer Media, 5 Ascot Knights47 Grand Gloria National Ansah Boulevard Royal Ascot,Milnerton 7441, South AfricaCountry Tel: Representatives+27 (0) 21 555 0096Cell:South+27Africa(0) 81 331 4887EdwardEmail:Waltered@topdog-media.netByerleyTop Dog Media, 5 Ghana Ascot Knights47 Grand National Nana Boulevard Asiama Bekoe Royal Ascot,Milnerton Kingdom 7441, South Concept Africa Co.Tel: Tel: +233 +27 243 (0) 393 21943 555 / +233 0096303 967 470Cell: kingsconceptsltd@gmail.com+27 (0) 81 331 4887Email: ed@topdog-media.netGhana NigeriaNana Asiama Nnenna Bekoe OgbuKingdom #4 Babatunde Concept Oduse Co. crescentTel: +233 Isheri 243 393 Olowora 943 -/ Isheri +233 Berger, 303 967 Lagos 470kingsconceptsltd@gmail.comTel: +234 803 670 4879getnnenna.ogbu@gmail.comNigeriaTaiwo Adedoyin KenyaMV Noble, Press Patrick House, Mwangi 3rd Floor27 Acme Aquarius Road, Media Ogba, Ltd, PO Ikeja, Box Lagos 10668-11000Tel: +234 Nairobi, 806 291 Kenya 7100taiadedoyin52@gmail.comTel: 0720 391 546/0773 35 41Email: mwangi@aquariusmedia.co.keKenyaNaima Farah©Africa Briefing LtdRoom 22, 2nd Floor West Wing2 Redruth Close, London N22 8RNRoyal Square, Ngong Road, NairobiUnited KingdomTel: +254 729 381 561Tel: +44 (0) 208 888 6693naimafarah_m@yahoo.compublisher@africabriefing.orgAfrica Briefing Ltd2 Redruth Close, London N22 8RNUnited Kingdom
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