Africa’s Energy Efficiency Improving with 1.6% Annual Gain

New reports reveal that Africa’s energy efficiency policies are starting to show real results, with an average improvement in energy use of around 1.6% per year from 2022 to 2024.

This is a big jump from the previous decade, where the rate was less than half of this. The International Energy Agency (IEA) credits this progress to government action and a gradual recovery from the COVID-19 pandemic, which had slowed down both economic growth and energy demand.

Africa’s energy needs have been growing by about 2.2% per year over the last decade, while its economy has grown around 3% each year.

This led to a 9% increase in energy use per unit of economic output, but some countries have shown that big improvements are possible.

Ethiopia and Togo, for example, have made impressive gains, reducing their energy intensity by 5.7% and 4.5% per year, respectively.

Across Africa, governments are stepping up their efforts to use energy more efficiently. Ethiopia, for instance, has set high targets under its Long-term Low Emission and Climate Resilient Development Strategy, aiming for an 8% annual improvement in energy efficiency until 2050.

On a larger scale, the African Energy Commission and the European Union are working together to develop the African Union Energy Efficiency Strategy (AfEES).

The strategy aims to increase energy productivity by 50% by 2050, which would allow economic growth without a big increase in energy use.

Investments in Africa’s energy sector are growing, with a projected $9 billion investment in 2024, up from just over $5 billion in 2023.

But this is still only about 3% of global energy investments, which total around $110 billion. Africa faces several hurdles in attracting more investment, such as high debt levels, low credit ratings, and high capital costs.

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Experts recommend creating stronger policies to lower investment risks and using public funds to attract more private sector support.

Another challenge is Africa’s reliance on second-hand markets for appliances and vehicles. In 2022, sales of used construction equipment grew by 20%, and over 80% of new car registrations were for used vehicles.

While these products are affordable, they often consume much more energy, as older appliances can use two to three times more electricity than new ones.

To tackle this, some governments are introducing rules to limit the age of imported vehicles and encourage the use of more efficient appliances.

Electric mobility also shows potential for energy savings in Africa. Countries like South Africa and Ethiopia are making strides with electric vehicles (EVs) to cut fossil fuel reliance and boost local production.

Ethiopia opened its first EV manufacturing plant in 2024, and Ghana launched its first e-bike assembly plant earlier this year.

Buildings remain a major energy consumer in Africa, responsible for over 50% of total energy use. Energy efficiency policies are helping reduce their energy needs, even as overall demand increases.

For example, Ethiopia’s residential sector consumed a larger share of its energy in 2022, at 86%, compared to 42% in Nigeria and only 13% in South Africa.

Despite these differences, many African countries are adopting building energy codes to improve efficiency.

With stronger policies and innovation from both government and private sectors, there’s hope for Africa to achieve sustainable growth while meeting its rising energy demands.

The IEA stresses that with the right policies and technologies, now is the time for Africa to take bolder steps to make energy efficiency a top priority.