UN Agency roots for strong policies to light up Africa
Business
By
Brian Ngugi
| Dec 23, 2023
The United Nations Economic Commission for Africa (UNECA) has called for the implementation of supportive policies and strong regulations to boost private investment in the energy sector in Kenya and other African countries.
This will accelerate the process of electricity connections in the continent, the agency says.
Despite the immense potential for development in the electricity sector, the continent remains one of the least electrified regions globally.
According to Yohannes Hailu, an energy policy expert at the Private Sector Development and Finance Division, (PSDFD) of ECA, there is low private sector investment in energy infrastructure and service delivery on the continent.
READ MORE
Kisumu, Nairobi among worst users of development funds
Why KQ has canceled its Cape Town return flight
Curriculum delivery is a marathon, not a sprint
Recipe for rigging: Battle looms over plan to scrap IEBC's livestreaming of election results
Why Ruto rejected Public Procurement (Amendment) Bill, 2024
Kenya shines at Zone Individual Chess Championship in Ethiopia
Police-linked brutality victims in court, claim opaque compensation process
Safe but scared...: Tales of Mathare floods survivors
Consequently, to change this scenario, he urged African countries to reform the policy and regulatory frameworks to ensure adequate openness, and attractiveness, which will ready the African market for private investments, energy experts agree.
According to him the socio-economic transformation of African countries will depend upon the ability to accelerate infrastructural development and industrialisation, enabled by "access to modern, reliable and affordable energy within an energy transition system."
This requires substantial investment, including a robust role from the private sector, the UNECA energy expert said.
Policy and regulatory frameworks thus play a crucial role in the building of an enabling business environment, he emphasized.
Based on assessment in 16 countries undertaken by the UN Economic Commission for Africa (ECA) and RES4Africa Foundation, Mr Hailu said key areas for improvement related to market openness such as policies and plans, sector regulation, market organization, private sector participation models and procurement models.
"In addition, there is a need for attractiveness through contracts and economic regulation, incentives and credit enhancement. Readiness such as the presence of permits and authorization administration, technical codes and grid access is also important to fast-track private investment through a better enabling environment," he said.
Mr Hailu further revealed that the African Union Commission and the ECA have developed the Continental Regulatory Framework to Crowd-in Private Investment in Africa's Electricity Markets.
This framework assists Member States in their efforts to enhance regulatory planning.
Furthermore, the ECA and RES4Africa have developed a regulatory planning tool called ROAR, which helps strengthen institutional capacity for planning and implementing reforms.
Northern Corridor blueprint secures green funding
Officials say the funding is expected to unlock further investments needed to modernise freight transport across the region.Manufacturers turn to direct sales as online shopping reshapes electronics trade
Electronics market is moving further online as manufacturers and retailers expand digital sales channels, giving consumers more ways to research, compare and purchase products.Historic El Nino threat raises fresh risks for Kenya's economy and food security
Kenya is staring down the barrel of its most powerful El Nino in more than four decades, with forecasters and economists warning of a potential catastropheStanbic Bank records marginal jump in half-year profit to Sh6.6b
Stanbic Holdings posted a marginal rise in half-year profit to Sh6.61 billion but cut its interim dividend by more than half despite stronger asset quality.Surge in Tanzania, Uganda units push EABL net profit to record Sh18.2 billion
Regional brewer East African Breweries Ltd (EABL) has posted a record net profit of Sh18.2 billion for the year ended June 2026.MOST READ
- Manufacturers turn to direct sales as online shopping reshapes electronics trade
ENTERPRISE
By David Njaaga
- Historic El Nino threat raises fresh risks for Kenya's economy and food security
BUSINESS
By Brian Ngugi
- Stanbic Bank records marginal jump in half-year profit to Sh6.6b
BUSINESS
By Brian Ngugi