Energy Supply Vital to Accelerate Economic Integration, AfCFTA Implementation
Addis Ababa Ensuring the supply of energy among countries is pivotal for steadfast economic integration and accelerated implementation of the African Continental Free Trade Area (AfCFTA), according to experts.
In an exclusive interview with ENA, Kenya Renewable Energy Association (KEREA) CEO Andrew Amadi energy, specifically electricity is the most important determinant of economic growth.
There is no country in the world that has become rich without electricity, he said, and added that countries need to move towards using energy for production and value addition.
There is no meaningful development that can happen without the use of electricity, Amadi stated, and noted “I think the integration of electricity is very timely because it will level the availability across countries.”
“So if we connected for example; we have connected Kenya to Ethiopia, if we connect Kenya to Tanzania, then from Tanzania to Rwanda; you can be able to supply electricity from the hydro in Ethiopia to Rwanda and turn down the generators they are using to generate electricity. That is the importance of integration,” the CEO elaborated.
Furthermore, Amadi pointed out that availability of energy supply will reduce huge capital investment on building electricity generation infrastructure.
Speaking of AfCFTA implementation, he stressed the need to remove any barriers that hamper easy facilitation of intra-trade in Africa.
According to him, there is huge market that could be exploited for the benefit of the region if all agree to work in harmony together.
“If the barriers are less, if we harmonize customs and tariffs and if we all agree and say we want to grow this then we instantly create a big market in east Africa. East African community, we are talking 380 million people if you add Ethiopia we are at 500 million people market. If that market can allow goods and services, people move freely then we do not need to export to western markets. We can be able to supply our local markets and grow our economies trading on what each country or region has got capacity to produce and exploit,” the CEO noted.
Association of Power Utilities of Africa (APUA) Director-General, Abel Didier Tella said on his part there will be no meaningful development unless countries invest on energy.
The energy issue in Africa should be considered as priority sector, he said, and added that governments have to put maximum effort in developing energy sector.
“When investors come to Africa; they see Africa as a place where you can come and take raw material. Now they have to change their views; they have to see Africa as a place where mining development support energy development, where we transform our raw materials before export, where we transform our raw materials and manufacture to create jobs and empower the youth with skill to work in factories,” Tella explained.
The Director-General underscored “transforming products through value addition is the only way to exit from poverty in energy.”
Ethiopia has been working to strengthen its hydropower generation to export electric power to neighboring countries with a view to expedite regional economic integration and secure foreign currency.
The demand for electric power by neighboring countries is increasing from time to time; the government has been intensifying efforts to expand infrastructures vital to addressing this need.
Ethiopia has already been exporting electric power to Sudan, Djibouti and Kenya while agreement is underway with South Soudan.
Source: Ethiopia News Agency