The Energy Republic February - March Edition 2023

AFRICAN ENERGY STORIES
annual increase in its popula on
through 2050, the con nent ’s
demand for energy will rise by 82% by
2050. The study states that gas will
account for 30% of Africa’s energy mix
b y 2 0 5 0 a n d t o g e t h e r w i t h
renewables will be crucial in driving
energy access across the con nent.
The GECF further predicts Africa’s
natural gas produc on to increase
from 260 billion cubic meters (bcm) in
2021 to 585 bcm by 2050, owing to
energy security, affordability and
reliability on the back of maximal
exploita on of local energy resources
becoming the top concerns for
African policymakers.
However, with limited investments
across the industry disrup ng growth
over the past few years, the GECF
report highlights that Africa will need
t o s e e u p t o $ 1 . 7 t r i l l i o n i n
investments being made towards
upstream ac vi es for the con nent
to achieve a produc on rate of 585
bcm by 2030.
The report adds that with an
increasing number of African
c o u n t r i e s d e v e l o p i n g e n e rg y
strategies which are based on natural
gas and renewables to address
energy poverty and economic
expansion, the share of Africa’s gas
sector on the global market will
expand to over 11% of all gas supplies
by 2050, with the majority of the
supply set to be directed towards
power genera on.
”While global gas trade is expected to
rise by 36% through 2050, driven by
increases in LNG trading, Africa is set
to record a significant increase in
pipelines, liquefied natural gas and
regasifica on spending through
2050,” said HE Eng. Mohamed Hamel,
Secretary General of the GECF.
A d d i o n a l l y, w h i l e e n e r g y
mone za on is a top priority for
Africa to expand gross domes c
product (GDP), the trading of gas will
be crucial in helping the con nent to
ensure the availability of energy
investments and capital to drive
social development projects. The
GECF an cipates Africa’s GDP to rise
from $2.5 trillion in 2021 to $7.1
trillion by 2050.
WeLight Raises 19 Million from EU
Financial Institutions to Electrify
120 Villages in Madagascar
E
uropean Investment Bank (EIB), Triodos
Investment Management and EDFI
ElectriFI has allocated their new
collec ve investment of €19 million to support
WeLight Madagascar’s €28 million project in
Madagascar. The investment will enable
WeLight to build and develop solar mini-grids
to supply electricity to over 120 villages in
Madagascar which currently have no access to
the electricity grid. The funding will be
combined with €9 million in loans which
WeLight will source from its shareholders –
AXIAN Group, Sagemcom and Norfund.
The new mini-grids will provide residents in
off-grid rural villages access to clean and
affordable energy. Alongside homes and
businesses, the project will benefit schools,
h e a l t h c e n t r e s a n d p u b l i c s p a c e s ,
strengthening the local economy and
improving health, security and educa on.
Made up of a solar power plant and energy
storage system, a distribu on line and a meter
for each customer, a mini-grid can supply
electricity 24 hours a day, seven days a week.
The 120 addi onal villages cover 17 regions
and were selected thanks to outstanding work
with Madagascar’s Ministry of Energy and the
Agency for the Development of Rural
Electrifica on (ADER).
At present around a quarter of the popula on
in Madagascar has access to electricity. Offgrid
solar technology has proven to be a fast
and effec ve solu on to accelerate economic
growth and sustainable development in regions
where connec on to the grid is s ll challenging.
Romain de Villeneuve, Chief Execu ve Officer of
WeLight Madagascar, stated that the project will
“posi vely impact hundreds of thousands of
people, greatly enhancing living standards, the
local economy and people’s well-being. WeLight
has already deployed its solu ons in more than
40 rural communi es.”
EIB Vice-President Ambroise Fayolle, added that
EIB’s backing of the project in Madagascar
represents part of the group’s commitment to
contribu ng towards scaling up solar mini grid
deployment in Africa to mi gate climate change,
with the bank having funded projects in Benin,
Chad, the Comoro Islands, Mozambique and
Uganda.
Thanks to the support of these partners and with
AXIAN Group, Sagemcom and Norfund as its
shareholders, and through the opera onal
excellence developed to serve customers,
WeLight will pursue its growth in Madagascar and
in other countries in Sub-Saharan Africa where
such types of needs are s ll not answered.
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