Africa- An economy to reckon with energy sector expansions

Africa is one continent that has the benefits geographically. In climatic aspects, it has the best of both worlds, in terms of the tropics and the equatorial weather conditions. A continent of rich natural resources, if carefully nurtured and utilized they have the potential to overtake the developed nations of the globe.

The important aspect to sustaining an economy, focusing in terms of meeting the energy demands. It is important to run the industries and meet the regular household demands in the nation. Demand for these is skyrocketing due to the rapid changes in the lifestyle levels, true for the African subcontinent too. The major hurdle they have at the moment is in terms of the ageing oil rigs. This adds a lot of pressure in the energy consumption in the whole economy since there is a spurt in the economic activity to attract better life to the people of the subcontinent.

The recent trend shows a decline in the production of goods in many of the nations across the continent. It boils down to the decline in the production of oil in countries like Nigeria, which is said to be the top producer of oil in the nation. Its ageing infrastructure and political instability caused by militants led to quite an issue in production. Adding to all this the pandemic also became a contribution to a factor in the decline in the production of oil. The oil demand became stagnant in terms of the travel ban across the globe the oil exports have reduced and become confined to the domestic market. This led to a problem of pricing of oil and lead to bigger problems to the sector. To solve this problem one way to do this is to go in bringing together small oil producers together to bring about better and more efficient production techniques. This combined with aspects like knowledge transfers would pave more ways to make the sector more sustainable.

Considering the kind of investments towards solar, wind and other cleaner energy projects are magnanimous and take time to set up, Africa has taken steps to reduce its carbon emissions by going in for the production of LNG (liquified natural gas). Research has shown that these gases have a low carbon imprint on our planet compared to our regular fuel sources. This project is been taken up by the Tanzanian government and it would be operational by mid of 2022. All the energy woes could be taken care of for the next hundred years to be precise. With the development of such projects, the nations across Africa can be one of the potential economies scaling greater heights of economic growth and development.

These are the initial steps towards the growth of a completely green solution to our energy needs that would take many more years of research and development. All the developing and underdeveloped nations across the globe can look into prospects and projects with cooperation to build a sustainable economy. It is what the economies are striving for today.