Advancing a Just Energy Transition in Africa

At Kosmos Energy, we believe every nation must eventually get to net zero, but the starting point should be economic justice and the right of all people to live dignified lives with access to food, shelter, affordable and secure energy, and employment. Delivering the basic needs of life continues to be a challenge for many countries, and African leaders are making it clear that the world must support a ‘just’ energy transition for all.

In 2018, about 600 million people in Sub-Saharan Africa did not have access to electricity and nearly 900 million people lacked access to clean cooking fuels and technologies. Between 2019 and 2021, the International Energy Agency (IEA) estimates access to energy in the region fell by about 4%. The situation is getting worse, not better.

A just energy transition requires an inclusive approach that recognizes no two countries are alike in their ability to transition to lower-carbon economies quickly and fairly. The developed world cannot expect the same speed of transition or adoption of renewables from developing nations, as many do not have the infrastructure, resources, or capacity to leap straight to renewables. At Kosmos Energy, we see our role as helping our host countries develop their resources responsibly so they can use their natural gas for domestic power and export revenues to invest in infrastructure and services that raise living standards today while transitioning to renewables and a lower-carbon future.

Energy Transitions in Western and Central Africa

With support from Kosmos Energy, Oxford Economics has produced an analysis of future energy trajectories in our host countries Ghana, Senegal, Mauritania, and Equatorial Guinea, as well as Nigeria. Key findings include:

• Energy Inequality — The average US citizen consumes over 63 times more electricity than each person in the countries selected for this study, while the average Chinese citizen consumes over 25 times more electricity.

• Vital Resources — Oil and natural gas are central to the countries’ macroeconomic and socio-economic progress, complemented by the growing geostrategic importance of natural gas globally. Even so, renewable energy is expected to grow sharply over the longer term. Development of natural gas resources and renewable energy should go hand-in-hand.

• Energy Poverty – A rapid increase in primary energy and electricity supply is needed to reduce the excessive reliance on traditional biomass, improve human wellbeing, and foster sustainable economic development. Over 35% of the nations’ collective populations live without electricity, while 75% do not benefit from cleaner cooking options. Cleaner cooking must be seen as a basic human right and the use of natural gas for cleaner cooking can help mitigate the health hazard of indoor air pollution that affects rural communities and poor urban dwellers.

• Energy Outlook — Oil and natural gas are expected to grow in the countries’ primary energy systems, while natural gas will generally complement rising shares of renewables in electricity production. Gas-to-power is expected to serve as the foundation of the countries’ electricity industries by 2050.

• Emissions Impact – While CO₂ emissions are set to rise as energy supply increases to meet development needs, the countries’ contributions to global emissions will remain marginal. According to some estimates, if Africa tripled its consumption of natural gas the effect would be equivalent less than one percent of global emissions.

• Policy Objectives — Energy transition and diversification are underway in these countries, in line with climate goals. However, these goals could be delayed due to lack of sufficient investment and support from development partners and the private sector.

“This report highlights the prominent role natural gas will play in the energy transitions for Ghana, Senegal, Mauritania, and Equatorial Guinea, especially if these countries are going to meet their developmental goals and objectives. As the world wrestles with the challenge of producing and enabling access to secure, affordable, and cleaner energy, Kosmos is looking to a future in which the company helps its host countries develop their resources responsibly. By taking a collaborative approach, acting in an open and accountable manner, and contributing to development, we aim to be an investor of choice in these countries.“

Mike Anderson
Senior Vice President
Sustainability and External Affairs