Nigeria, South Africa and other African nations could create a net 3.8 million jobs if it could attract a $2 trillion investment in manufacturing and power sectors.
This is according to a report released by McKinsey & Co, a global consulting firm.
The report, which was titled ‘Africa’s Green Manufacturing Crossroads’ was partially funded by the government of the United Kingdom.
What McKinsey & Co is saying
It stated, “The continent could create a net 3.8 million jobs if it could attract a $2trillion investment in manufacturing and power.
“Nigeria and other African nations will need $2trillion for low-carbon emitting manufacturing without the added costs of transitioning from fossil fuel-based factories.”
Senior Partner, McKinsey Nairobi, Kartik Jayaram, stated that Africa had the opportunity to leapfrog high carbon-emitting manufacturing processes instead of building a low-carbon industry from scratch.
He said, “Africa could avoid future costs by sidestepping the expensive transition from fossil fuels to renewables.”
According to the report, the continent emitted a total of 440 megatonnes of carbon dioxide equivalent in 2018, with almost a third coming from cement and 13 per cent released by coal-to-fuel plants operated by Sasol Limited in South Africa. South Africa was the largest emitter.
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What you should know
Nigeria was the fourth-largest emitter of carbon dioxide equivalent, the report said, emitting about 30 megatonnes with the largest amount from cement manufacturing. Egypt was the second-largest emitter, followed by Algeria.
The report however stated that if the continent failed to commit to decarbonisation, it could double the current rate to 830 megatonnes by 2050.
African countries would need to tap green finance instruments such as carbon credits, green bonds, green insurance and payment for performance linked to green outcomes.
“To decarbonise existing industries, $600billion would be needed while $1.4trillion is needed for new green businesses.
“Carbon capture and storage and the production of green hydrogen are two technologies that could help the continent attain the target,” the report said.
It added that new industries that could be developed ranged from bioethanol and cross-laminated timber to electric vehicles and green hydrogen.