Moving from Economic Growth to Transformation Through Energy and Power

Abstract

Electricity is a major source of energy in all sectors of an economy, that is, the military, home, industrial, education, commerce and agricultural sectors in a given country. The role of power/energy in economic transformation cannot be over-emphasized. Centuries before the discovery of electric light, kingdoms and empires depend on a source of energy/power to power great establishment and businesses. As important as electricity in powering industrial and economic development, many developing countries are facing power shortage problems (Morimoto and Hope, 2001). An adequate and regular power supply may be one of the most crucial factors which supports economic growth in developing countries. In a related study on the relationship between electricity usage and economic development, Ferguson, Wilkinson, and Hill (2000) posit that, there is a strong correlation between electricity use and economic development.

The level of development in sub-Sahara Africa could be attributed to availability of stable and clean electricity supply. It is widely acknowledged that Sub-Saharan Africa is in the midst of a power crisis (Eberhard et al., 2008; UN 2007). Outages are not just frequent and long but also erratic in most countries in Africa. In the midst of potential to generate energy in sub-Sahara Africa, many problems have bedeviled the region in attaining economy transformation.

Keywords: Power, Energy, development, financing, economic growth, sustainable energy