Africa is racing against the clock as nations are racing to reaching their Millennium Development Goals (MGDs) by 2015. The “Global Poverty Report 2002,” released by the African Development Bank in collaboration with the World Bank, said that while countries in Asia, Eastern Europe and Latin America were on track to fulfill the MGDs, few African countries were likely to meet most of them.
The MGDs focus around many areas including ensuring environmental sustainability. In a more recent report, “Assessing Progress in Africa toward the Millennium Development Goals” (2009), Angola, Libya, and Nigeria are still cause for major concern over their carbon dioxide emissions. Angola, Libya, and Nigeria are top oil producers for the continent, but the countries remain reliant upon the oil and gas sector and have undertaken very little effort in the renewable energy sector. Libya has just announced plans to increase its renewable energy output to account for 10% of its total generated electricity by 2020 although the country currently stands at less than 1%.
The UNDP released “Making Progress on Environmental Sustainability,” monitoring 150 countries and their advancements toward the MGDs. As the MGDs are based upon eight specific goals, environmental sustainability is the 7th target for countries within this doctrine. According to the UNDP report, a total of 42 countries from Africa report on this specific goal. Angola and Botswana are trying to further sustainable development principles into their country programs while the Central African Republic is attempting to increase protected areas and access to electricity. And Kenya is making strides to decrease its energy consumption per capita, particularly from petroleum products, while also increasing the use of biomass, just to name a few.
Since these countries are still dominant in the oil and gas industry, biofuels could be a good answer. Angola’s government appears to be keen to venture into this sector as Fernando da Piedade dos Santos, Angola’s Vice President, urged that policies be created on national and regional levels in order to protect food security, an issue that drives many against the prospect of biofuels. The Vice President said that it was important for countries to integrate other energy sources in Africa. Although foreign investors should watch out as the country is gunning for more local participation in its biofuel sector.
At the end of March, the southern African country passed a law regulating the involvement of international companies in its domestic biofuel industry. Foreign investors delving into the Angolan biofuel sector are required to sell some of their biofuel production to Angola’s state oil company Sonangol. Foreign companies will also be required to help provide water, services, and medical care to local residents.
Nigeria recently launched the construction of a $23.3-million integrated cassava/ethanol refinery. However, the problem with Nigeria is the fact that a law such as the one recently enacted by the Angolan government is not set in place – nor is really any other regulation regarding the renewable sector. Nigeria is known for its problems in its Niger Delta region over foreign occupation of its oil and gas resources, therefore, regulation such as Angola’s would seem appropriate to advance Nigeria’s industry more and provide much needed products to its residents. Nigeria also faces political uncertainty as its former president, Umaru Yar’Adua, died and Goodluck Jonathan officially assumed the head of state role. It is unclear what changes, if any, will be continued as Jonathan is on his way to making quick changes. Yet those changes could become null as elections are scheduled for next year.
It is believed that Africa will need to increase its renewable energy efforts in order to make a significant contribution to the MGDs. However, renewable energy will not bring rural electrification alone. It is important to note that diversifying the energy mix will cause a greater impact. So while it is no secret that more regulation must be put in effect throughout Africa in order to help its energy sectors progress and further sustainability, it is also important to implement these laws to attract investors.
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