An Intergovernmental organisation, the International Energy Agency (IEA) says Africa’s energy expenditure in 2024 will reach $110 billion.
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.
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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.
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