Policy Alert Improving energy efficiency and interconnectivity in Africa through

One of such strategies could be to explore ways in which regional integration, as embodied in the recently adopted African Continental Free Trade Agreement (AfCFTA), could strengthen the energy sector and existing power pools, and support better utilisation of the region’s abundant renewable energy resources to meet unmet demand. [...] Current energy deficit and shortcomings of existing power pools The proportion of Africans with access to electricity is significantly lower than the global average as shown in figure 1. [...] Lack of a strong regulatory and institutional framework has brought about uncertainty, which is a barrier to investment and growth of the sector. [...] Also, the fragile political climate in some member countries has weakened the effectiveness of the power pools as a result of uncertainty. [...] Prospects of AfCFTA in stimulating integration of Africa’s energy systems Encouraging a single regional energy market under the AfCFTA could potentially mitigate some of these shortcomings, and improve the prospects of regional power pooling.