56
M. Irowarisima
for investors is that the injected capital becomes short-term reason
being that they are not willing to take this long-term arrangement for
investments in such an environment.
2.3.6 Insufficient Involvement of Indigenous Entities
in the Regional Energy Space
In addition to the need for consistency and predictability of regulatory and policy reforms in the sector. To encourage and drive growth
in the sector, governments at various levels need to involve African entities. Primarily to showcase the skills acquired from foreign companies to
maintain the people’s momentum. These African entities are meant to
look after the assets that foreign companies started, like General Electric (GE). These African entities will serve as a conduit to change the
dynamics in the sector through the skills that these foreign companies
transferred into the continent in order to achieve the energy gap.
Massive involvement of African entities in the energy space creates a
sense of ownership towards the project rather than the foreign investors
who are primarily involved in the region’s energy market. Thus, these
indigenous companies will do quite a lot in achieving the various objects
of the sector more than just delivering power. Getting the objectives is
the significant prerequisites in achieving energy access, it is about getting
the means right to achieving the end game, which is powering the region.
Again, all of these cannot be achieved if the region promulgates laws
that are targeted towards promoting the indigenous involvement in the
certain manufacturing sector of the energy sector which can reduce cost
drastically for the overall energy consumption cost. For instance, South
Africa, where it forecloses the opportunity for indigenous companies’
involvement by levying huge tax on the manufacturing of Photovoltaic
solar panels as against imported ones that enjoy tax exemptions. Therefore, such tax regimes further exacerbate the cost implication involved
for renewable sources of energy to compete alongside fossil generating
capacity in delivering affordable and reliable energy for the region.
M. Irowarisima
for investors is that the injected capital becomes short-term reason
being that they are not willing to take this long-term arrangement for
investments in such an environment.
2.3.6 Insufficient Involvement of Indigenous Entities
in the Regional Energy Space
In addition to the need for consistency and predictability of regulatory and policy reforms in the sector. To encourage and drive growth
in the sector, governments at various levels need to involve African entities. Primarily to showcase the skills acquired from foreign companies to
maintain the people’s momentum. These African entities are meant to
look after the assets that foreign companies started, like General Electric (GE). These African entities will serve as a conduit to change the
dynamics in the sector through the skills that these foreign companies
transferred into the continent in order to achieve the energy gap.
Massive involvement of African entities in the energy space creates a
sense of ownership towards the project rather than the foreign investors
who are primarily involved in the region’s energy market. Thus, these
indigenous companies will do quite a lot in achieving the various objects
of the sector more than just delivering power. Getting the objectives is
the significant prerequisites in achieving energy access, it is about getting
the means right to achieving the end game, which is powering the region.
Again, all of these cannot be achieved if the region promulgates laws
that are targeted towards promoting the indigenous involvement in the
certain manufacturing sector of the energy sector which can reduce cost
drastically for the overall energy consumption cost. For instance, South
Africa, where it forecloses the opportunity for indigenous companies’
involvement by levying huge tax on the manufacturing of Photovoltaic
solar panels as against imported ones that enjoy tax exemptions. Therefore, such tax regimes further exacerbate the cost implication involved
for renewable sources of energy to compete alongside fossil generating
capacity in delivering affordable and reliable energy for the region.