Botswana least energy-intensive economy
Boitshepo Majube | Thursday December 19, 2013 15:12
The report says Botswana’s economic dependence on diamond exports makes it one of the exceptions in the region. Diamonds contribute over one-third to the country’s GDP.
'Although mining is in general an energy-intensive industry, the high value of exports compared to the energy needed to extract them and the overall lack of other industrial development make the country’s economy, one of the least energy-intensive economies globally and the best performer in the region for this indicator,' it states.
Overall, Sub-Saharan African countries occupy the lowest rankings globally on energy intensity of their economies.
“This is largely driven by low GDP and the prevalence of energy-intensive industries such as mining and fossil fuel production,” the report says.
The report further stated that in 2012, the energy-intensity of Mozambique and Togo placed them among the most energy-intensive economies globally.
In the new ranking, Botswana is ranked 95 out of 124, with a score of 0,44. The Republic of Congo is rated the best in Sub-Saharan Africa at position 53 with a score of 0,55. The scores are based on Economic Growth and Development, Environmental Sustainability and Energy Security and Access.
The report was prepared in collaboration with Accenture and designed to help countries spur their efforts to meet energy challenges and opportunities in innovative ways. The index assesses regions and 124 countries according to economic growth, environmental sustainability and energy security performance.
It analyses the complex trade-offs and dependencies that affect countries’ efforts.
In Sub-Saharan Africa, Botswana is fairly placed. The country boasts large reserves of coal, but has challenges of low electrification. The report shows that Botswana performed badly in energy security and access, placed at 104 with a score of 0,46.
The report notes that although sub-Saharan Africa achieves one of the lowest average scores compared to other regions, it has a number of resource-rich countries such as Nigeria, the Republic of Congo and Angola, along with extensive coal reserves in South Africa.
'Recent discoveries of large natural gas fields off the coast of Mozambique and Tanzania are expected to become commercially operational by 2016, further increasing the region's resource wealth,' it stated.
However, the report states that the region also faces critical challenges of low electrification rates - 590 million people lack access to a modern energy supply and 700 million use traditional biomass for cooking.
The report states that the persistence of fuel subsidies affects scores across the region, with higher prevalence of these in resource-rich country. Nigeria and Angola have the highest subsidies in the region for super gasoline and diesel respectively.
“Addressing subsidies remains a key challenge for both Nigeria and the Republic of Congo in terms of improving the affordability of the overall energy system,” it says.
Under economic growth and development, South Africa is the highest-performing country for the sub-Saharan region and is ranked 29th globally. The report says over the past decade, South Africa has undergone economic development, which has set it apart from other countries in the region, and warranted the country’s inclusion among the BRICS economies.
“Although South Africa has an energy-intensive economy as a result of its industrial activity, the country’s higher GDP relative to other sub-Saharan Africa countries mitigates the impact of import expenditure relative to GDP,” it says.