Energy Security, Poverty and Development Policy in Africa

Poor supply of clean, reliable, affordable energy stifles economies, makes people — in particular women — sick as they inhale smoke from firewood, and damages the environment (Kenny, 2012). The pricing and supply of oil, one of Africa’s main sources of energy, has influenced the development trajectory as far back as the late colonial era. Since 1999 the international oil price has increased from US$25 per barrel to more than US$100, with a persistent upward trend in prices from mid-2010 to early 2011 (Bolton, 2012). The so-called Arab Spring coincided with further price rises, and the Libyan war caused prices to rise even faster, to around US$125 per barrel by late April 2011, the highest prices since July 2008. Cold weather across much of Europe in early 2012 and tension between Iran and the West caused prices to escalate to more than US$120 per barrel by February of that year.1 The political instability in Arab countries has been one of the most important factors driving the oil price upwards (Massa et al., 2012). The countries affected had to bear a high cost in terms of declining GDP and disruption to livelihoods and human security. For African countries — especially those that import oil — this has also meant a rise in their import bills.