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Johannesburg – Many African countries have experienced rapid and significant economic growth over the past decade, and to ensure the sustainability of this growth, these economies rely heavily on accessible, affordable and efficient energy.
Unfortunately, the continent lags behind most other countries in energy security, raising awareness to provide energy to the millions of African people who lack it.
Financing energy projects is a major challenge for the energy sector in Africa. Political and credit risks remain key factors preventing potential investors from investing in the energy space in Africa.
To meet this investment challenge, it is necessary to develop new innovative financing solutions and approaches adapted to the African landscape. If successfully used, these financing initiatives should help in terms of financing capacity, thus strengthening the development of projects in the energy sector in Africa. These initial financing efforts will curb foreign direct investment by restoring investor confidence in Africa, thereby contributing to job creation and skills development.
The possibility for privatization to support the demand for a reliable energy supply is becoming increasingly feasible to address the lack of supply in many countries and regions of Africa. Privatization tends to improve the productivity and quality of electricity supply, which remain essential elements in restoring the financial feasibility of electricity services. In addition, management performance peaks when strong incentives and privatized corporate governance systems are firmly in place.
Earlier this year, South African Minister of Energy, Jeff Radebe, signed 27 power purchase agreements, representing a total investment of R565 billion, with independent producers of electricity. Renewable energy. These agreements are part of the South African Government's Independent Energy Producer Supply Program (REIPPPP), which has been in abeyance since 2015.
This clearly demonstrates the government's commitment to economic development and prosperity. By adopting renewable energy initiatives, the government will create about 61,000 jobs over the next few years. The signing of these concrete agreements also demonstrates the government's interest in eventually accepting small-scale projects that focus on broad economic empowerment of blacks, local purchases and local operations, leading to economic development of local economies. This should enable serious legislative reforms to increase private sector confidence, by stimulating greater participation in Africa's energy space.
Inaccessibility to power remains another major challenge on the continent. Many peripheral rural areas do not have access to electricity because of the poor network infrastructure and the vast distances between which electricity must be distributed. This lack of energy causes a multitude of socio-economic problems.
For starters, project development and public investment, such as schools and community centers, remain impossible without electricity. Electric inaccessibility also makes basic tasks such as mobile phone charging and household water supply unavailable for water or heat. Fortunately, the development of mini and off-grid power supply solutions is beginning to address this issue and address the lack of network connectivity.
Country governments are focusing on expanding household electricity access, ensuring that modern energy services are more equitable, affordable and accessible to the poor. The energy sector therefore remains at the center of the structural development of the economy.
In addition, until recently, energy supply was not high on the agenda of many African countries, but countries have realized that more important issues such as the effectiveness of health Water supply, agriculture and agriculture as well as employment require of themselves successful. In accordance with the Constitution, the South African Government is committed to making significant efforts to mainstream energy into its national development strategies to support investments in other areas of development.
The above challenges and their solutions will be discussed and discussed in detail at the upcoming Africa Energy Indaba conference to be held at the Sandton Convention Center in Johannesburg, Africa's economic hub, on 19 and 20 February 2019. The Will participants be informed of interactive discussions on how the country can enhance its attractiveness for investment to attract funding and how can Africa improve access to power in Africa? their respective countries? The conference will provide a platform to inform market participants on how they can contribute to increased energy security, not only to create jobs and attract investment, but also to improve the socio-economic development of the economy. # 39; Africa.
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