05-12-07

One of the most significant factors challenging Africa’s economic growth and productivity is inadequate access to energy. This is according to World Bank vice-president Obiageli Ezekwesili, who states that this challenge is illustrated by the fact that only 25 % of the African population, which currently numbers 900-mm, has access to electricity.
Apart from the social and economic implications this challenge presents, Ezekwesili believes that the lack of energy capacity is inhibiting further foreign investment on the continent. Consequently, the expansion of Africa’s energy capacity is fundamental to ensuring continued investment and economic growth across the continent, believes the World Bank.

The generation of hydroelectricity is the main non-fossil fuel source of energy currently being developed in Africa, primarily owing to the fact that it is cheaper and cleaner than fossil-fuel-based energy. Africa has huge and untapped rivers, including the Nile, Niger, Congo, Senegal, Orange, Limpopo and Zambezi rivers, which are suitable for hydroelectric plants.
The continent has a maximum potential of 400,000 MW of hydro generated energy; how- ever, it only uses 7 % of this potential at present.

Addressing delegates at this year’s Corporate Council on Africa’s US-Africa Business Summit, Ugandan President Yoweri Museveni emphasised the importance of hydropower as an alternative and more sustainable source of energy. Museveni stated that, with the rising price of crude oil and other fossil fuels, it was essential that Africa find a more inexpensive and durable source of energy, such as hydro-power.
Uganda is currently pioneering the development of hydro energy capacity in Africa, which is illustrated by the development of the country’s flagship 250-MW Bujagali hydroelectric power plant at Bujagali Falls, 8 km north of Lake Victoria. Another project is the Karuma hydropower project, which will entail the construction of a 200-MW hydropower plant, about 3 km upstream from the Karuma bridge in northern Uganda.

In addition, with the help of the World Bank, the Ugandan government has established the Fourth Power Project, which aims to improve power supply through the installation of two 40-MW generating units at the existing Kiira hydropower station. It has also been reported that the Japanese government is to construct small hydropower projects in Uganda, especially in rural areas.
Owing to the fact that hydroelectric projects require heavy financing and considerable planning, Museveni is actively encouraging foreign investment in the African energy sector. In addition, Museveni has encouraged international investors to visit East Africa, where the continent’s pioneering hydropower projects, as well as its development potential, are showcased.

Another African country that is particularly encouraging foreign investment into the hydro-energy sector is Madagascar. Madagascan Economic Minister Ivohasina Razafimahefa explained that the country’s energy sector was considerably underdeveloped, with only 15 % of the population having access to electricity.
Further, the existing energy infrastructure is heavily dependent on fossil fuels, particularly oil, which is driving up the cost of electricity. Razafimahefa added that Madagascar had hydropower potential of 7,800 MW but that only 150 MW was being developed.

In addition to hydropower, the country aims to exploit other renewable energy sources, such as biofuel and wind power, stated Razafimahefa. However, owing to the high cost of such projects, Razafimahefa said he had invited foreign investors, particularly from the US, to invest in sustainable energy projects on the Indian Ocean island.
Thus, Ezekwesili concluded that development of Africa’s energy capacity is dependent on foreign investment and that opportunities do exist if the private sector collaborates with African governments in the development of sustainable energy projects.

Source: www.iran-daily.com