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Why Kenya And Africa Must Prioritize Industrial Energy Over Climate Change Concerns

BY Soko Directory Team · October 26, 2024 10:10 am

KEY POINTS

Africa’s development needs are urgent. The continent is home to the world’s youngest population, with 60% under 25 years of age. These youth need jobs, and jobs come from industries. Relying on renewables alone will hamper job creation, exacerbating issues like youth unemployment and economic migration.

KEY TAKEAWAYS

Manufacturing and industrialization are energy-intensive endeavors. To create sustainable agro-processing and manufacturing sectors, energy needs to be available on-demand, not subject to the intermittent nature of solar or wind power.

Africa, and Kenya specifically, is standing at a critical crossroad. While the Western world preaches the gospel of climate change mitigation, encouraging developing nations to adopt green energy, there’s an uncomfortable reality: Africa simply cannot industrialize on renewable energy alone. Without reliable, abundant, and cost-effective energy sources, African nations are destined to remain economically stagnant, limiting progress in manufacturing, production, and agro-processing. Meanwhile, developed nations, from the U.S. to China, built their economic empires using coal, oil, and natural gas, resources that fueled their growth. Africa deserves the same opportunity to prioritize industrialization over climate idealism.

In 2023, Kenya’s total energy generation capacity reached approximately 3 GW, with 90% of its energy coming from renewables like hydro, wind, and solar. Yet, even with such impressive renewable capacity, frequent power outages and limitations highlight a fundamental issue: renewables alone cannot provide the energy reliability that industries require. In contrast, China and India rely heavily on coal and other fossil fuels, allowing them to maintain a steady, industrial-grade power supply that drives their factories, plants, and technological centers. Kenya’s pursuit of renewable energy will inevitably limit its competitiveness on a global scale if it doesn’t prioritize conventional energy sources to support its industrial base.

Critics often argue that African nations have a responsibility to the planet, but this notion overlooks the carbon reality. Africa’s total contribution to global greenhouse gas emissions is barely 4%, while the U.S., EU, and China contribute over 50%. Telling Africa to halt its development to protect a planet others have polluted is not just hypocritical—it’s economically damaging. For context, the average Kenyan emits around 0.31 metric tons of CO2 annually, whereas the average American emits around 15 metric tons. How, then, can the argument be made that Kenya must sacrifice its future for the climate when its carbon footprint is a fraction of the West’s?

Read Also: World’s Hottest Month Sparks Fresh Calls For Urgent Investment In Renewable Energy For Africa

Manufacturing and industrialization are energy-intensive endeavors. To create sustainable agro-processing and manufacturing sectors, energy needs to be available on-demand, not subject to the intermittent nature of solar or wind power. According to Kenya’s Vision 2030, the country aims to achieve an industrialized, middle-income economy. However, without a robust energy policy that prioritizes fossil fuels alongside renewables, this vision will remain out of reach. For instance, large-scale agro-processing factories require steady power 24/7, and any downtime means massive losses. Solar energy, with its variability, cannot be the sole energy source for such operations.

It’s worth noting that the West’s industrial revolution occurred with little regard for environmental impact, leading to a global economy that is still dominated by the most industrialized nations. Germany and the U.K., for example, only started embracing green energy seriously after achieving robust industrial and economic foundations. In 2021, 46% of Germany’s energy came from renewables, yet they still maintain coal and nuclear plants to secure their energy needs. Kenya and other African nations should be allowed the same trajectory: build first, then green later.

Kenya’s population is expected to double by 2050, requiring a surge in job creation, infrastructure, and housing. For every industrial job created, numerous other jobs in transport, logistics, and services are generated. But to create these jobs, Africa needs reliable energy. The high costs associated with renewable energy infrastructure are a further barrier. Solar and wind power require substantial investments upfront, along with a stable grid infrastructure—something most African countries lack. The World Bank estimates that Sub-Saharan Africa needs $93 billion annually in infrastructure investment, a target that is not feasible with the current dependency on high-cost renewables.

Another critical element is the cost of energy for businesses. In 2022, the cost of electricity in Kenya was about $0.22 per kWh, which is significantly higher than in other industrial nations like China ($0.08 per kWh). This cost disparity makes it nearly impossible for Kenyan products to compete globally. If Kenya wants to foster industries that can export competitively, energy costs must come down, and this is only achievable by leveraging fossil fuels. Attempting to industrialize solely on renewables will keep energy costs high, crippling local businesses and driving potential investors away.

Meanwhile, climate policies imposed by international bodies like the UN and World Bank often come with economic strings attached, limiting African countries’ ability to invest in energy sources that would power industrialization. Instead of telling African nations to avoid fossil fuels, the global community should be supporting their responsible, phased development. Countries like South Africa, which rely on coal for over 75% of their electricity, illustrate the trade-off: while coal-powered energy has environmental impacts, it is fundamental to their industrial economy.

Furthermore, Africa’s rich fossil fuel reserves remain largely untapped. East Africa, for instance, holds vast reserves of natural gas and oil, which could fuel growth for decades. Kenya, Uganda, and Tanzania have significant oil reserves, yet international pressures push them to leave these resources in the ground. Leveraging these resources could catalyze Africa’s economic independence, allowing it to build industries and create jobs that will reduce poverty. It’s an opportunity Africa cannot afford to miss, as self-sufficiency in energy would also reduce its dependency on foreign aid.

Read Also: Renewable Energy As A Market Differentiator For Manufacturers

Moreover, Africa’s development needs are urgent. The continent is home to the world’s youngest population, with 60% under 25 years of age. These youth need jobs, and jobs come from industries. Relying on renewables alone will hamper job creation, exacerbating issues like youth unemployment and economic migration. The alternative is to use affordable, abundant fossil fuels to power industries that create employment opportunities, allowing the young African workforce to build their own future.

Lastly, renewable energy requires advanced technology and expertise, which is often imported. Africa’s reliance on imported technology for renewable projects increases costs and diverts funds away from local priorities. By focusing on fossil fuels, Africa can invest in infrastructure that it can control, operate, and maintain independently. This would foster technical skill development within the continent, making it more self-reliant and capable of managing its energy needs in the long term.

Kenya’s agricultural sector, a backbone of its economy, also requires significant energy inputs. Agro-processing, storage, and transport need stable and continuous power, particularly for value addition and export markets. Depending on solar and wind alone would subject these operations to unpredictable disruptions, ultimately impacting the country’s GDP and food security. Traditional energy sources can ensure that agriculture can be processed at scale, creating more value for farmers and contributing to economic growth.

Africa must weigh the benefits of responsible fossil fuel development against the unrealistic expectation that it will industrialize solely on renewable energy. Kenya should not abandon climate responsibility, but it must place its economic priorities first. A balanced approach, where fossil fuels play a foundational role alongside gradually expanding renewables, will set Africa on a realistic path to industrialization, just as other continents have done.

In the end, Africa’s pursuit of industrialization and energy independence is not just about economic growth; it is a matter of sovereignty. Climate change may be a pressing global issue, but Africa should not be expected to carry an unequal burden at the cost of its development. It’s time to recognize that Africa’s future depends on energy strategies that prioritize industrial growth, job creation, and economic independence above all else.

Read Also: Tackling Challenges In Renewable Energy Adoption

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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