First, some facts.
In Sub-Saharan Africa, on average, industry generates $700 of GDP per capita in Africa, less than a third of Latin America’s output ($2,500 per capita) and barely a fifth of East Asia’s ($3,400 per capita).
In the EU, only 30% of electricity produced is used by households. In the US, it’s currently 21% vs. c. 15% in 1949. Only 25% of these households are rural i.e. only 5.25% of electricity generated is consumed by rural households. In 2014 in China 12% of electricity produced was used by households
62% of Sub-Saharan Africans are rural – c. 500 million people. By contrast, 25% of EU citizens, 18% of Americans, 7% of Japanese and 44% of Chinese live in rural areas.
What can we say about this?
We often get asked about the challenges of doing business in Africa, of which there are indeed many.
However, one simple one that often gets overlooked is size. At Energy Access Ventures, we believe we do business in “the Africas”. In a fascinating graphic created by Kai Kruse (below) the true scale of the African continent can be seen quite easily. Coming in at a whopping 30.2 million km2 Africa can swallow up China, the contiguous USA, India, Europe and Japan with 100,000 km2 left over for good measure. ...
For the 600m people in sub-Saharan Africa without access to modern energy sources, under-electrification is not just a nuisance but often quite literally a matter of life and death. However, there have been a number of innovations in recent years that have the potential to be game-changers in Africa, turbo-charging long-term sustainable development through businesses that can deliver triple bottom line outcomes (social, environmental & economic). This is what Energy Access Ventures is about: finding those companies that can exploit secular themes such as increased mobile penetration ...