African governments, investors, and international financial institutions must significantly scale up investment in energy to unlock Africa’s potential as a global low-carbon superpower, according to a new Kofi Annan’s report.

Kofi Annan, Chair of the Africa Progress Panel, said: “Africa needs to utilize all of its energy assets in the short term, while building the foundations for a competitive, low-carbon energy infrastructure. We categorically reject the idea that Africa has to choose between growth and low-carbon development.”

The report calls for a ten-fold increase in power generation to provide all Africans with access to electricity by 2030.

This would reduce poverty and inequality, boost growth, and provide the climate leadership that is sorely missing at the international level.

In Sub-Saharan Africa, 621 million people lack access to electricity – and this number is rising.

Power shortages diminish the region’s growth by 2-4% a year, holding back efforts to create jobs and reduce poverty.

Despite a decade of growth, the power generation gap between Africa and other regions is widening.

The report reveals that households living on less than $2.50 a day collectively spend $10bn every year on energy-related products, such as charcoal, kerosene, candles and torches.

Measured on a per unit basis, Africa’s poorest households are spending around $10/kWh on lighting – 20 times more than Africa’s richest households.

By comparison, the national average cost for electricity in the United States is $0.12/kWh and in the United Kingdom is $0.15/kWh.

The report from Kofi Annan’s Africa Progress Panel, Power, People, Planet: Seizing Africa’s Energy and Climate Opportunities, said Africa’s leaders must start an "energy revolution that connects the unconnected, and meets the demands of consumers, businesses and investors for affordable and reliable electricity”.

The report also calls for strengthened international cooperation to close Africa’s energy sector financing gap, estimated to be $55bn annually to 2030, which includes $35bn for investments in plant, transmission and distribution, and $20bn for the costs of universal access.

A global connectivity fund with a target of reaching an additional 600 million Africans by 2030 is needed to drive investment in on- and off-grid energy provision.

“Countries like Ethiopia, Kenya, Rwanda and South Africa are emerging as front-runners in the global transition to low carbon energy. Africa is well positioned to expand the power generation needed to drive growth, deliver energy for all and play a leadership role in the crucial climate change negotiations,” said Annan.