Weak government policies are responsible for the incessant energy crisis confronting the African continent, entrepreneur and philanthropist Tony Elumelu has stated.
Mr. Elumelu, who is also the chairman of the United Bank of Africa (UBA), made this known at a press conference in Accra on Friday shortly after the Shared Prosperity Forum held at the University of Ghana (UG).
Citing reasons for the never-ending energy problems on the continent, the philanthropist also blamed the continent’s energy crisis on wanton corruption among government officials heading the power agencies in the various countries.
According to him, corruption among state officials cannot be ruled out when it comes to factors directly responsible for the energy problem facing the sub-continent.
He said most African governments do not respect terms and conditions of contracts they enter into with private investors in the energy sector.
The philanthropist stated that most governments on the continent terminate contracts midway through agreement periods due to political reasons.
That, he said, continues to discourage prospective investors from venturing into the sector.
He stated that “most investors that have entered the sector are no longer encouraged to go further because the policies are not supportive, and you don’t operate in an area where your tariffs are not cost supportive.”
Mr Elumelu therefore advised African leaders to have the political will to protect the interests of private investors, as well as tackle corruption head-on to end the energy crisis on the continent.
Youth Unemployment
He bemoaned the rising unemployment among the youth on the continent, saying it’s a critical threat to the future of Africa. Unemployment is a serious problem, it’s a time bomb waiting to just explode.
“I say this because economists tell us that by 2020, we will have about 122 million young Africans enter the market and the capacity of Africa to create employment will give us 50 million jobs so we have a deficit.”
He called on African nations to industrialize in a manner that will enable the region better utilize its natural resources to create additional employment avenues for the youth.
According to him, “We need to establish value-added businesses so that instead of exporting jobs we can retain jobs.”
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