Skip to main content

Ghana named best among six countries for private investment- AfDB report

By: Raphael Apetorgbor

Ghana has been rated as one of the best among six African countries that attracts private investment based on the latest African Development Bank (AfDB) report.
In the report obtained by the Daily Express, it describes the record as disappointing for the region because it accounted for only 2 per cent of private sector investment in energy infrastructure.
“Over the decade ending in 2013, subSaharan Africa accounted for only 2% of private sector investment in energy infrastructure in developing regions,” it stated.
Fourfifths of this investment is concentrated in six countries: Cameroon, Ghana, Kenya, Nigeria, Tanzania and Uganda. However, since 2005, the level of investment in energy with private participation increased across Africa from US$5 billion to US$11 billion, despite the financial crisis.
While a number of African countries have publicprivate partnerships (PPP) for power infrastructure, in most countries the main constraint on private sector investment is a lack of wellprepared, bankable projects. Project preparation facilities, such as those provided by the AfDB and other development partners, will therefore play an important role, helping to fund the substantial costs involved in preparing viable regional energy projects, so as to attract investment from public and private sources.
Africa continues to face many challenges in providing reliable and affordable energy to a large proportion of the population. With rural electrification rates of just 10% across sub-Saharan Africa, about 6 of every 10 Africans are forced to live without reliable access to electricity. As a result, they are severely constrained in their ability to pursue livelihood opportunities, access public services and lift themselves out of poverty. Affordable and reliable electricity is an essential foundation for many of Africa’s development goals and aspirations.
More than $60 billion in annual investments are needed to close the infrastructure gap and achieve universal electricity access by 2040. There are positive signs: around half of this finance is already available, with a growing share coming from national revenues and financial markets. The development of regional power pools will help both to mobilise new investments and to boost the efficiency of existing networks, lowering the costs of electricity provision.
Equally important is the spread of clean energy technologies, including offgrid and microgrid solutions to supplement traditional energy supplies. These solutions may have higher upfront costs, but they offer significant returns over the longer term, helping to boost the supply of power without compromising sustainability. With over half of the world’s renewable energy sources, Africa has significant potential to leapfrog older technologies and become a global leader on clean energy.
In a foreword statement signed by Solomon Asamoah, Vice president Operations in charge of Infrastructure, Private Sector & Regional Integration of the Bank, it states that Energy is one of the most essential requirements for Africa’s development. In the 21st century, it is a matter of concern that over 620 million Africans still live without the benefits of an electricity connection. A reliable and affordable energy supply is key to generating the broadbased and inclusive economic growth needed to make major inroads into poverty; it can transform the lives and livelihoods of Africans, helping them to take charge of their own development.
Energy is also a field of opportunity for Africa. The continent has significant share of the world’s renewable energy sources, of which only a fraction is under development. Africa has the potential to leapfrog over carbonintensive technologies and meet most of its future energy needs from renewable sources, putting it firmly on the path to green and inclusive growth. The African Development Bank has therefore placed energy at the heart of its portfolio. Over the past four decades, we have invested over $13 billion in the energy sector, to boost generation capacity and rural electrification. Under our new Energy Policy 2012, we help African countries build modern energy sectors that are socially, economically and environmentally sustainable. We will support regional investments that link national electricity systems into regional power pools, to enable powersharing across national borders and promote more efficient regional planning of energy infrastructure.
The Bank also helps develop Africa’s potential in clean energy. From the vast hydropower potential of Central Africa’s river systems, to some of the world’s largest solar power installations in North Africa, to innovative, smallscale renewable energy solutions for remote areas, we will help African countries move towards a green development pathway.
However, the investment needs are very large: overcoming Africa’s energy deficits will require investments of more than $60 billion a year until 2040. As this amount is far beyond the capacity of any single institution, we are working to leverage other sources of finance and establish strategic partnerships with other development partners. We are also helping our member states to develop publicprivate partnerships for power infrastructure and to access sources of climate change finance.


Popular posts from this blog

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…

Vodafone fined a record £4.6 million for IT blunder

A top-up error left pay-as-you-go customers out of pocket and complaints were mishandled
Vodafone has been fined a record £4.6 million by the telecoms watchdog forleaving thousands of customers out of pocket in a disastrous IT blunder.
Ofcom found that the operator mishandled complaints and failed to pay into the accounts of more than 10,000 pay-as-you-go customers when they topped up their credit.
The top-up error, which cost customers £150,000 over 17 months in 2014 and 2015, stemmed from the moving of 28.5 million accounts to a new billing system.Errors in billing data and price plans caused so much protest that it made Vodafone the most complained-about mobile network in Britain.The technical issues were resolved by April 2015 and all accounts are now on the new system, Vodafone said.
Lindsey Fussell, Ofcom’s consumer group director, said:“Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies.”
The company says that it has ref…

Enterprise Life inaugurates social centre for Kumasi SOS village

By: Fred Yaw Sarpong
Enterprise Life and Sanlam South Africa together with SOS Children’s Villages Ghana have jointly inaugurated a newly constructed social centre at the SOS Children’s Village, Kumasi in the Ashanti region.
The project, valued at GHc485,000.00 forms part of Enterprise Life and Sanlam-South Africa’s corporate social responsibility (CSR) to promote quality education and health for vulnerable children in Ghana.
The newly established social centre provides a suitable multi-purpose facility with a spacious auditorium among others to host different social activities related to child growth and development and will cater for both SOS children and students of the Hermann Gmeiner School.
The centre also offers the beneficiaries the opportunity to freely socialize and participate actively in educational oriented activities such as school concerts, art exhibitions and workshops.
The Executive Director of Enterprise Life, Mrs. Jacqueline Benyi expressed satisfaction that her outf…