fbpx

Electricity Supply Shortages Continue To Be Costly For Africa

Electricity Supply Shortages Continue To Be Costly For Africa

From Business Day

Electricity supply shortages and disruptions have become very costly for African countries, with some increasingly resorting to privatising energy provision, a conference heard recently.

South Africa is among those countries struggling with power supply disruptions, which companies based in the country have in the past identified as one of the main challenges to doing business.

A lack of adequate electricity was identified as one of the main constraints to economic growth at the two-day International Monetary Fund’s (IMF’s) Africa Rising conference, which concludes on Friday.

While the South African government has invested billions of rand in the construction of new power stations, other countries have given the responsibility of power generation to the private sector. Nigeria is among these countries.

Acting governor of the Central Bank of Nigeria Sarah Alade said in an interview on Friday that adequate power supply could help Africa’s biggest economy record double-digit economic growth rates. She said the government roped in the private sector more than a year ago to help with electricity generation.

“Already the powers have been transferred to the private sector owners but it takes one or two years to see the benefits,” she said. “So in another two or three years we will not be talking about power shortages the way we are now.”

 

Written by Ntsakisi Maswanganyi /Read more at Business Day