African Financing of Energy
While commitments from international public donors and the private sector are critical for the achievement of SDG7 in Africa, no other group is more important than African national governments. Consistent and efficient spending by African national governments on SDG7- related programmes and policy reforms is vital.
While monitoring isolated SDG7-compliant spending is not possible, the study shows that from 2014-2022, African national governments spent a total of EUR 105 billion on energy. This spending has fallen since 2018, with critically low levels in 2021 and 2022, as the impact of COVID-19 and rising questions of indebtedness and macroeconomic weaknesses ravaged public finances across the continent. The cumulative impact on African public finances has been an increase in debt and less funding being available for capital projects of all sorts, with energy projects no exception – despite the vital role they play in driving economic growth.
There is some reason for optimism, however, as Least Developed Countries across Africa have managed to keep a steady overall trend of energy spending. While it is apparent that global financiers can have an oversized impact by mobilising additional funding to help African national governments to achieve their SDG7 goals, achieving SDG7 on the African continent will not happen without increased contributions from the governments themselves. This should take place both through adequate policy-making and through targeted and increased spending.