The Speaker of the National Assembly, Ms Baleka Mbete, today encouraged delegates at the Africa Oil & Power Conference to find solutions to the crippling energy challenges facing the continent. Africa Oil & Power is a platform for energy investment and policy discussions that brings together governments and top executives from private sector companies within the energy value chain.

Ms Mbete highlighted the limitations that energy shortages have on the growth potential of African businesses. “In the absence of grid power, many businesses in various African countries had to resort to buying their own generators to deal with the lack of energy supply. It is reported that 57 per cent of businesses in Kenya have their own generators, whilst 42 per cent of businesses in Tanzania have generators and 41 per cent of in Ethiopia have also purchased their own generators. This self-provision of electricity by businesses increases the cost of doing business in Africa due to the simple fact that small generator power is four times the price of grid power,” Ms Mbete explained.

The platform created by Africa Oil &Gas Conference presented role players with a great opportunity to meaningfully contribute, as a sector, to the African Union’s Agenda 2063. Agenda 2063, as adopted by heads of state and governments, committs nations to connecting Africa through a world-class energy infrastructure as well as harnessing all African energy resources. “It is crucial that African countries invest in infrastructure that will enable us to harness our energy potential and unleash our full economic potential,” Ms Mbete emphasised.

The Speaker also placed local beneficiation at the centre Africa’s development. “Africa has to reduce its dependence on imported refined oil products. Truly, it defies any logic why we should export oil and then import petrol and diesel from countries outside the continent at higher prices. The import of refined products will just contribute to the increase of our import bill and put our currencies under pressure.

“It is encouraging to note that various African countries are really focusing on building their own refineries. Equally, it is important that African countries should focus on the skills development and local content in the oil and gas sector. Gone are the days where local communities just become sources of cheap labour and not benefit from the procurement spend of the oil and gas companies,” she emphasised.

Ms Mbete further advocated for a predictable regulatory framework to ensure that African countries attract requisite investment for the development of the gas and oil sector. Above all, she cautioned oil companies to always be cognisant of environmental management issues.    

Malatswa Molepo

7 July 2017