2 African Energy Challenges in the Transition Era …
63
2.4.2 The Creation of Linkages
Another area where the energy transformation agenda is facing serious
issues pertains to the absence of a significant linkage between the energy
and industrial development frameworks for both SADC and ECOWAs
regions. The role of regional cooperation is to establish these linkages with the goal of creating a robust regional energy value chain.
71
These value chains must promote the building of local manufacturing
and service capabilities from generation to metering value chain of a
typical energy market operations. As part of their regional cooperative role (ECOWAS and SADC) in the region, a regional strategy to
reap industrial development benefits should be designed taking into
cognizance regional markets as priorities from resource extraction to
resource distribution.
In addition, the creation of effective linkages is important in
addressing the challenges of energy in the region because markets for
projects, technologies and services are hugely fragmented due to existing
national limitations.
72 These limitations in local and national economies
are often the bane of the rapid development of new national industrial
capacities and sustaining the existing capacities in the sector.
The creation of integrated regional linkages as part of the role of
regional cooperative effort for the regional energy market must be a
priority, rather than have having fragmented national markets. This
would serve as a catalyst for the emergence of regional businesses to
manufacture the required energy technologies and service the market
in a cost-reflective manner.
73 To achieve this, governments of various
countries should reduce tax drastically, or regional firms should enjoy
tax exemptions for certain goods manufactured locally in the region.
71 G Montmasson-Clair, and R Das Nair, ‘Channelling Economic Regulation to Stimulate
Inclusive Growth: Lessons from South Africa’s Renewable Energy Experience’, Presented at
the Biennial Conference of the Economic Society of South Africa, University of Cape Town,
Cape Town, 2015.
72 B Hanna, J Drake-Brockman, A Kasterine, and M Sugathan, ‘Trade-In Environmental Goods
and Services: Opportunities and Challenges’, Technical Paper (International Trade Centre,
Geneva, Switzerland, 2014).
73 C Wood, ‘A South African Strategy for Green Trade: Trade & Industrial Policy Strategies and
Green Economy Coalition’ (Pretoria and London, 2017).
63
2.4.2 The Creation of Linkages
Another area where the energy transformation agenda is facing serious
issues pertains to the absence of a significant linkage between the energy
and industrial development frameworks for both SADC and ECOWAs
regions. The role of regional cooperation is to establish these linkages with the goal of creating a robust regional energy value chain.
71
These value chains must promote the building of local manufacturing
and service capabilities from generation to metering value chain of a
typical energy market operations. As part of their regional cooperative role (ECOWAS and SADC) in the region, a regional strategy to
reap industrial development benefits should be designed taking into
cognizance regional markets as priorities from resource extraction to
resource distribution.
In addition, the creation of effective linkages is important in
addressing the challenges of energy in the region because markets for
projects, technologies and services are hugely fragmented due to existing
national limitations.
72 These limitations in local and national economies
are often the bane of the rapid development of new national industrial
capacities and sustaining the existing capacities in the sector.
The creation of integrated regional linkages as part of the role of
regional cooperative effort for the regional energy market must be a
priority, rather than have having fragmented national markets. This
would serve as a catalyst for the emergence of regional businesses to
manufacture the required energy technologies and service the market
in a cost-reflective manner.
73 To achieve this, governments of various
countries should reduce tax drastically, or regional firms should enjoy
tax exemptions for certain goods manufactured locally in the region.
71 G Montmasson-Clair, and R Das Nair, ‘Channelling Economic Regulation to Stimulate
Inclusive Growth: Lessons from South Africa’s Renewable Energy Experience’, Presented at
the Biennial Conference of the Economic Society of South Africa, University of Cape Town,
Cape Town, 2015.
72 B Hanna, J Drake-Brockman, A Kasterine, and M Sugathan, ‘Trade-In Environmental Goods
and Services: Opportunities and Challenges’, Technical Paper (International Trade Centre,
Geneva, Switzerland, 2014).
73 C Wood, ‘A South African Strategy for Green Trade: Trade & Industrial Policy Strategies and
Green Economy Coalition’ (Pretoria and London, 2017).