Power sector, most especially access to electricity, is critical in Africa’s journey to globalisation, says Kola Adesina, group managing director, Sahara Power Group Limited.
Adesina, who spoke with CNBC Africa at the ongoing World Economic Forum (WEF) in Davos, said Africa must improve access to electricity as to harness the digital revolution, adding that currently the continent has about 41.9 percent of the world’s population un-electrified, which invariably “is a huge opportunity for investors to cash on which will benefit Africa and move it closer to the fourth industrial revolution”.
He added that whereas the world is talking of the fourth revolution, the continent still lags behind in the second.
“There is need to quickly close power gap which will allow Africa benefit from the fourth industrial revolution because we have not been able to get the electricity that we desire to improve our infrastructure and making the economy work well for the people,” Adesina said.
He explained that in order to bring energy to life, investors believe in Public Private Partnership (PPP). He, however, also emphasised that government needs to bring something to the table in order to provide confidence for foreign investment.
“If government is not willing to provide the sovereign guarantees to back up investments, investors like Sahara Energy who desperately and eagerly want to fill the infrastructure space are going to find it difficult doing business,” Adesina explained.
The CEO of Sahara Energy noted that because of the lack of cost-reflectivity in electricity tariff, it’s difficult for investors to put in their money because ultimately they want their money back.
“Government needs to stand behind the economy and consumers, most especially those who can afford to pay the right price for investors to come in,” he said, adding that government needs to leverage on the resources available to PPP that will reduce the huge infrastructural gap plaguing Africa countries.
“There is need for us to have a resource swap arrangement for infrastructure, most especially electricity. If we have that kind of model, we at Sahara Energy are eager to partner with any nations that need us to improve on their infrastructure,” Adesina said.
Concerning the risk of global climate change in 2019, Adesina further explained there was need for alignment between alternative energy and renewable energy as it’s becoming imperative to look at the poorest of nations in Africa and the world in terms of infrastructure deficit and closing that deficit as quickly as possible, which Sahara is currently positioning itself for.
With operations in over 38 countries across the entire energy value chain in Africa, Europe, the Middle East and Asia, Sahara Group is an avowed global promoter of the sustainable development goals, good governance and economic empowerment.
Iheanyi Nwachukwu & Dipo Oladehinde
