Development of Renewable Energy Resources can Diversify Africa’s Economy – Executive
Mr Osi Okonkwo, General Manager, FranzEnergy Ltd, says the development of renewable energy resources can significantly contribute to economic diversification in Africa, with specific policies needed for that transition.
Okonkwo spoke at a Panel Discussion on “Driving Economic Transformation in Global Africa: The Role of Emerging AfriCaribbean Giants’’, at the ongoing 31st Afreximbank Annual Meetings (AAM2024) in Nassau, The Bahamas on Thursday.
According to him, with regards to the renewable energy storyline, if done properly, it should mean a cleaner, healthier, more financially prosperous Africa with lots of jobs. Okonkwo said it would require going further down into the value chain, and not just pushing energy and commodities off the continent.
“This is because there are opportunities therein,’’ he said. He said some strategies could be put in place to enable renewable energy to go much further down the value chain.
“There is a need to delve into the actual production of solar panels, inverters and batteries, on the continent. There is so much more that can be done. But to do this, when you talk about strategy, a few things need to be done.
Okonkwo cited the instance of China that just launched a five GigaWatts (GW) solar farm, saying that the five GW capacity was about all of the power connected at the moment in Nigeria.
“So, when you think about the Chinese story, and try to use that as a template, there are a few things we have to do.” He said there was a need to lean into the transition fuels first and foremost, such as gas, then facility; and use that as a transition fuel, for a cleaner future.
According to him, coming into the renewable space, there is also a need to go a little bit deeper and depend more on the more consistent replenishable versions of renewables. So, we have to think of hydro dams, geothermal where it is applicable.
“ Lean into that first and foremost, because the run off the mill solar farms and wind are more inconsistent,” he said. With regards to policy, Okonkwo said there should be fewer but clear policies which allow for meritocracy of access to resources, and funding, among others.
He also said that the platter of policies should not get to a point where they would interfere and impede private sector ventures. Okonkwo said the private sector had a key role to play when it came to strengthening African Caribbean economies.
He, however, said there needs to be significant development, increased access to capital, steering up industrial capacity and reducing the overdependence of commodities. Mr Jean Louis-Ekra, former President, of Afreximbank, said that it was necessary to change the structures of African economies’, shifting away from relying solely on exports.
He said basic infrastructure needed to be in place as many countries still lacked power adding that nothing much could be done on transformation without power.
“We need to take advantage of the African Continental Free Trade Area(AfCFTA), and the issues of moving money, among others. Once we have dealt with some of the basics, then we can move forward and very quickly, to exporting among ourselves and take advantage of opportunities in the Caribbean’’
Louis-Ekra said that Africans had not done enough to use their financial resources. We need to generate resources before we talk about financing. I believe we have not harnessed enough of our own resources in our continent, to make it available to financial institutions so they can finance the change,” he said.
Dr Kingsley Mordi, Director, Bono Energy, restated the importance of putting basic infrastructure in place, with particular emphasis on energy. The 31st AAM2024 is being held in Nassau, The Bahamas from June 12 to June 15. It has the theme: “Owning our Destiny: Economic Prosperity on the Platform of Global Africa’’.
The AAM is taking place alongside the 3rd edition of the AfriCaribbean Trade and Investment Forum (ACTIF2024). 2026 WCQ: NFF to Employ Foreign Technical Adviser for Super Eagles
