Why Energy Policies Fail Africa’s Future

6 min read
2 views
Aug 9, 2025

Millions in Africa lack energy access, worsened by global policies. Can fossil fuels be the answer? Click to uncover the truth behind this crisis...

Financial market analysis from 09/08/2025. Market conditions may have changed since publication.

Imagine sitting in a small village in sub-Saharan Africa, where the sun dips below the horizon, and the only light comes from a flickering fire fueled by wood or dung. This is the reality for millions who lack access to modern energy—a basic necessity most of us take for granted. It’s a stark reminder of how far we’ve come globally in energy access, yet how far some regions still have to go. The question that haunts me is this: why, in an era of unprecedented technological progress, is Africa being left behind?

The Energy Crisis Gripping Africa

Africa’s energy crisis isn’t just a statistic; it’s a human tragedy unfolding daily. Over the past few decades, billions worldwide have gained access to electricity and modern fuels, lifting them out of poverty. Sub-Saharan Africa, however, stands as an outlier. For the first time since World War II, access to electricity is declining in some African nations. This isn’t just a setback—it’s a reversal of progress that affects health, education, and economic growth.

Energy access is the foundation of modern life, enabling everything from education to economic opportunity.

– Global development expert

Why is this happening? Some argue it’s a lack of infrastructure or funding. Others point to geography or political instability. But there’s a less discussed culprit: international energy policies that, while well-intentioned, are misaligned with Africa’s immediate needs. I’ve often wondered if the global push for sustainability is inadvertently punishing those who need help the most.


The Role of Global Energy Policies

International organizations have championed renewable energy as the path to a cleaner future. It’s a noble goal—who wouldn’t want cleaner air and a healthier planet? But the blanket approach to cutting fossil fuel investments, especially in Africa, has had unintended consequences. Policies from major institutions have restricted funding for oil, gas, and coal projects, pushing for renewables like solar and wind instead.

The logic seems sound: leapfrog fossil fuels and go straight to renewables. Yet, in practice, this hasn’t worked for much of Africa. Renewables require significant upfront investment, reliable grids, and technical expertise—resources many African nations lack. As a result, millions are left burning biomass like wood or dung for cooking, which is neither clean nor sustainable.

  • Biomass reliance: Over 80% of sub-Saharan African households use wood or dung for cooking.
  • Health impacts: Indoor air pollution from biomass causes millions of premature deaths annually.
  • Economic stagnation: Lack of electricity limits business growth and job creation.

It’s a vicious cycle. Without affordable energy, families can’t escape poverty, and without economic growth, countries can’t invest in infrastructure. Perhaps the most frustrating part is that Africa is rich in natural resources—oil, gas, and coal—that could power its development. Yet, global policies often block their use.


The Fossil Fuel Paradox

Here’s where things get tricky. The push to eliminate fossil fuels in Africa was meant to reduce carbon emissions. But the reality? Restricting access to oil, gas, and coal has increased emissions. How? When people can’t access electricity or clean fuels like liquified petroleum gas (LPG), they burn wood, dung, or lump coal. These traditional fuels release more pollutants and greenhouse gases than modern fossil fuel systems.

Burning biomass for cooking emits more carbon than using modern fuels like LPG or natural gas.

– Energy research analyst

This paradox is maddening. I’ve seen reports showing that developing Africa’s fossil fuel resources could actually lower emissions by replacing inefficient biomass burning. South Africa, for instance, has made strides in energy access by leveraging its coal reserves. Coal powers 82% of its electricity, and as a result, fewer households rely on smoky fires for cooking. Why isn’t this model being considered for other African nations?

CountryPrimary Energy SourceElectricity Access
South AfricaCoal (82%)85% of households
NigeriaBiomass (70%)55% of households
KenyaBiomass (65%)50% of households

The table above highlights the stark contrast. South Africa’s coal-driven grid provides electricity to most of its people, while countries reliant on biomass lag behind. It’s not about glorifying coal—it’s about recognizing what works in the short term to lift people out of poverty.


The Misstep of Renewable-Only Solutions

Don’t get me wrong—renewables have a place in Africa’s future. Solar panels and wind turbines could transform rural areas. But the idea that Africa can skip fossil fuels entirely is a fantasy. Renewables alone can’t meet the continent’s immediate energy demands. For one, they’re expensive to install and maintain. Second, Africa’s grid infrastructure is often too weak to handle large-scale renewable projects.

I once read about a village in Kenya where solar panels were installed with great fanfare, only to sit unused because the local grid couldn’t integrate them. It’s heartbreaking—good intentions, poor execution. The push for net-zero policies ignores these practical challenges, leaving Africans to bear the consequences.

  1. High costs: Solar and wind require significant upfront investment.
  2. Grid limitations: Many African nations lack the infrastructure to support renewables.
  3. Technical expertise: Operating and maintaining renewable systems requires trained professionals.

Instead of forcing a one-size-fits-all solution, why not let African nations use their own resources? Countries like Nigeria and Angola sit on vast oil and gas reserves. Developing these could fund schools, hospitals, and yes, even renewable energy projects down the line.


Carbon Credits: A Flawed Fix

Some propose that Africa fund its energy transition through carbon credits. The idea is that wealthier nations pay Africa to offset their emissions, and Africa uses the money to buy clean fuels and stoves. Sounds nice in theory, but it’s a shaky plan. For one, carbon credit markets are volatile and often don’t deliver the promised funds. Second, it keeps Africa dependent on external aid rather than building self-sufficient economies.

Think about it: why should a continent rich in oil and gas beg for handouts to afford imported fuels? It’s like telling a farmer to sell his crops abroad and buy food from a supermarket. Developing local resources would generate jobs, taxes, and infrastructure—real solutions, not temporary fixes.

Carbon credits are a bandage on a wound that needs surgery—Africa needs energy sovereignty.

– Economic development advocate

In my view, relying on carbon credits feels like a distraction. It’s a way for global institutions to pat themselves on the back while avoiding the harder truth: Africa needs to tap its own resources to break the cycle of poverty.


A Path Forward for Africa

So, what’s the solution? It’s not about choosing between fossil fuels and renewables—it’s about using both strategically. Africa’s energy future could look like this: develop oil, gas, and coal to provide immediate electricity and clean cooking fuels, then reinvest the profits into renewables and infrastructure. This hybrid approach worked for countries like China and India, which used coal to power their growth before transitioning to cleaner energy.

Here’s a simple framework for progress:

Africa’s Energy Roadmap:
  50% Fossil fuel development for immediate needs
  30% Investment in grid infrastructure
  20% Scaling up renewables for long-term sustainability

This isn’t a pipe dream. South Africa shows it’s possible. By prioritizing coal, it reduced biomass reliance and boosted electricity access. Other nations could follow suit, using their own resources to meet local needs while gradually integrating renewables.


The Human Cost of Inaction

Every day that Africa’s energy crisis persists, real people pay the price. Children study by candlelight, if at all. Mothers inhale toxic smoke while cooking. Businesses stall without power. The stakes are too high for ideological battles over energy sources. Fossil fuels aren’t the enemy—poverty is.

I can’t help but feel a sense of urgency here. The world has the technology and knowledge to help Africa leap forward, but only if we prioritize practicality over dogma. Allowing African nations to develop their resources could be the spark that lights up the continent—literally and figuratively.

Energy is not just power; it’s the key to unlocking human potential.

– African community leader

As I reflect on this issue, I’m struck by the irony. The same policies meant to save the planet are holding back millions from a better life. It’s time to rethink our approach, to listen to what Africans need, and to support solutions that work. Isn’t that what progress is all about?

The four most dangerous words in investing are: this time it's different.
— Sir John Templeton
Author

Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

Related Articles