The International Chamber of Commerce (ICC) defines a green economy as “an economy in which economic growth and environmental responsibility work together in a mutually reinforcing fashion while supporting progress on social development” The term was coined by David W. Pearce in his report, Blueprint for a Green Economy (1989). Karl Burkart further describes it using 6 concepts: renewable energy, green buildings, sustainable transport, water management, waste management and land management. The concept is anchored on the principle of efficiency and sufficiency, and according to the Green Economy Coalition; it is low-carbon, resource-conserving, diverse and circular. Adopting the green economy approach in Africa would accelerate sustainable development and equally enhance economic growth in the continent. Interestingly, Africa already possesses qualities that rightly position it for a smooth transition to a green economy. In addition to the low carbon emission rate on the continent, Africa houses a huge portion of the world’s renewable energy, and it is immensely rich in biodiversity. Hence, there is a need to evolve discussions on Africa’s green economy from its inadequacies, to how to harness innovation and strategically utilize the resources it already possesses to create a vibrant green economy.
Low carbon emission rate
Africa has a rich deposit of fossil fuels accounting for about 9.5%, 8% and 4% of the total proven reserves of crude oil, natural gas and coal in the world, respectively. These resources account for about 50% of the total primary energy supply and one-third of energy consumption in Africa. Data shows that over 80% of electricity generated across the African continent is from fossil fuels. In addition, fossil fuels make up a significant portion of government revenues in the major oil and gas-producing countries in the continent (see chart below).
Yet, the continent accounts for only 3% of global greenhouse gas emissions; the smallest in the world. Although the International Energy Agency (IEA) has argued that this low emission rate is only due to uneven distribution of wealth, energy use and the consumption of goods and services in the continent, we maintain that it is a huge bonus to Africa in its transition to a green economy. However, accounting for a low carbon emission rate is not enough. As discussed in the next paragraph, it is fundamental for Africa to explore its great deposit of fossil fuel alternatives i.e. renewable energy in the form of solar power, hydroelectric energy, wind energy, geothermal energy etc.
Heavy renewable energy deposit
Africa has a heavy deposit of untapped renewable energy in wind, solar, hydro, and geothermal energy. Recent reports by the International Renewable Energy Agency (IRENA) and the African Development Bank (AfDB) estimate the continent’s solar photovoltaic (PV) technical potential at 7,900 GW, suggesting that Africa possesses some of the globe’s greatest potential for solar power generation. According to Africa Renewal, it homes 7 of the 10 sunniest countries on earth: Chad, Egypt, Kenya, Madagascar, Niger, South Africa and Sudan. This is in addition to a sizable, additional potential for hydropower (1,753 GW), and wind energy (461 GW), as well as geothermal and modern bioenergy. Yet, Statista states that only 18% of these resources are being utilized. This underutilization is due in part to the lack of enabling policies and low investment in Africa’s renewable energy sector. In the last two decades, only 2% of global investments in renewable energy were made in Africa (see chart below).
An optimal utilization of these renewable resources can generate significant increases in the continent’s GDP, employment rate, and human welfare. According to IRENA, renewable energy could lead to a 6.4% higher GDP, a 3.5% employment increase, and a 25.4% increase in Africa’s welfare index between 2020 to 2050. Therefore considerable investments in the African renewable energy sector are non-negotiable. According to a report the International Energy Agency (IEA)’s, released in 2021 in collaboration with the World Bank and the World Economic Forum, annual clean energy investments in emerging markets and developing economies must be multiplied by more than seven – from less than $150 billion in 2021 to over $1 trillion by 2030 to put the world on track to reach net-zero emissions by 2050. In addition, African countries need to create enabling policies for the growth of renewable energy in the continent. These policies could be in the form of statutory regulatory instruments that encourage businesses and households to adopt renewable energy, establishing tax incentives for businesses that innovate in improving the accessibility and affordability of renewable energy and setting clear roadmaps for transitioning to more renewable sources of energy.
Rich biodiversity
Africa, is in fact, one of the most diverse regions on earth and immensely rich in biodiversity. According to the Africa Centre for Strategic Studies, the continent is home to about 20% of the planet’s land, one-quarter of the world’s mammal species, one-fifth of the world’s bird species, one-sixth of the world’s plant species, and 369 wetlands of international importance. According to the Jordan Times, Africa hosts roughly 1,100 mammal species, 2,500 bird species, about 3,000 to 5,500 freshwater fish species and 50,000 plant species. Our living organisms represent one-quarter of all biodiversity on Earth. Hence, it is not surprising that some parts of the world and more than 62% of the continent’s population rely on these diverse natural ecosystems for their health, food, energy, water, and secure livelihood needs. The concept of the green economy itself is anchored on the idea of an economy within environmental limits, and according to Alexandros Gasparatos and Katherine J. Willis in their book titled Biodiversity in the Green Economy “the preservation of ecosystem services and the halt of biodiversity loss are key pillars of the green economy.” In addition, bio-economy; a key aspect of green economy, specifically focuses on the use of renewable biological resources or raw materials from land and sea – such as animals. trees, plants, fish, and micro-organisms to produce food, energy, textiles and other products; and without biodiversity, the bio-economy will fail. In fact, the circular economy; another aspect of the green economy that is hinged on recycling materials back to a new production process, cannot function without biodiversity because the recyclable materials originate from the natural ecosystem. Hence the need to protect Africa’s biodiversity for a vibrant green economy. Currently, biodiversity in the continent is facing a direct threat and serious decline due to wood harvesting, fishery practices, agriculture, mining and climate change. According to the International Union for the Conservation of Nature (IUCN), over 6,400 animals and 3,100 plants in Africa are at risk of extinction. In addition, about 20% of Africa’s land surface (6.6 million km2) is estimated to be degraded because of pollution, soil erosion, loss of soil fertility and salinization. For instance, 82% of plants and 90% of animals on the island of Madagascar are endemic and together create irreplaceable ecosystems – unfortunately, scientists have found that 62% of vertebrates on this ecologically unique island are currently threatened by overexploitation, while unsustainable agriculture threatens 57%. These two factors endanger 90% of all Madagascar’s plant species.
Indeed, many species of plants, birds, animals, trees and hectares of land have already been lost. However, it is imperative to now protect and improve the survival potential of many endangered plants, animals and degrading lands. Creating awareness of the threats to Africa’s biodiversity, and promoting initiatives that encourage biodiverse-friendly entrepreneurship, education, and sustainable agriculture should be encouraged to help protect the continent’s biodiversity and citizens. Also, African governments and their international partners should create biodiverse-friendly governance policies.
Rather than focusing on the qualities that the continent lack; our discussions should focus on the possibilities it could create by simply maximizing the resources within its reach. For example, IRENA states that the renewable energy transition has the potential to create more than 9 million additional jobs between 2019 and 2030, and an additional 3 million jobs by 2050. This economic benefit is particularly important to the green economy transition since the AfDB estimates that each year more than 10 million youth enter the workforce in Africa, yet only 3 million new jobs per year are currently created. This simply means that this transition has the potential to boost employment in the renewable energy sector substantially in Africa. Therefore, our focus in this regard should be to drive international cooperation through collaborative finance dedicated to Africa’s renewable energy transition and the creation of strategic policies such as incentives and regulatory frameworks to drive the adoption of renewable energy by businesses and households in the continent. In addition, biodiversity provides an important boost to socioeconomic development in many developing countries. According to AfDB, it provides food, health, water supply and other benefits in Africa and the world at large. Hence, preserving Africa’s biodiversity through the creation of biodiverse-friendly government policies, as well as initiatives that propel biodiverse-friendly entrepreneurship, education, and sustainable agriculture is our responsibility as a continent. Finally, there should be a concerted effort in educating citizens on the green economy and also carry them along in the transition process.
About the Author(s)
Olayide Oyeleke is an associate at The AR Initiative; where Dr Emma Etim is the Head of Research.
