64
M. Irowarisima
Once this is done through the establishment of common regional rules,
it would contribute to achieving affordable, reliable energy access in the
regions.
As part of creating linkages in the sector, the regions should design and
promote a regional, rather than a local content strategy. By so doing, a
strong regional market is created that allows for the cumulation of local
content rules for binding regional agreements.
74 Cumulation here simply
refers to rules of origin, the restrictions in trade agreements that allocate
how much value a country must contribute to a product for that product
to be said to have originated in that country. Cumulation of rules of
origin allows for the value added by certain third countries to count
as local value added. For example, a product that is made in Nigeria,
using components from Ghana, and exported to America could count
a portion of those Ghanaian components as ‘locally made’, because all
three are party to an Economic Partnership Agreement that allows for
some cumulation of origin.
75
2.4.3 Establishing Common Institutions
and Technical Infrastructure
The complexities of energy issues and challenges differ greatly across the
globe. Each continent requires a unique approach in dealing with these
challenges. However, one elementary logic that has become a universal
best practice in dealing with such issues in any sector is the building of
common institutions and technical infrastructures as a role in productive
regional cooperative efforts. Although milestone achievements have been
made in this regard like the creation of the West African Power Pool and
the Southern African Power Pool in the ECOWAS and SADC regions
respectively, there is need to make them more functional by devolving
more control to regulators that allows for a more liberal trading structure.
74 C Mathews, ‘Western Power Corridor Pact Can Be Revived, Says Reuel Khoza’ [WWW
Document], Business Day, https://www.businesslive.co.za/bd/companies/energy/2017-02-21-wes
tern-power-corridor-pact-can-be-revived-says-reuel-khoza/, accessed March 23, 2020.
75 Ibid.
M. Irowarisima
Once this is done through the establishment of common regional rules,
it would contribute to achieving affordable, reliable energy access in the
regions.
As part of creating linkages in the sector, the regions should design and
promote a regional, rather than a local content strategy. By so doing, a
strong regional market is created that allows for the cumulation of local
content rules for binding regional agreements.
74 Cumulation here simply
refers to rules of origin, the restrictions in trade agreements that allocate
how much value a country must contribute to a product for that product
to be said to have originated in that country. Cumulation of rules of
origin allows for the value added by certain third countries to count
as local value added. For example, a product that is made in Nigeria,
using components from Ghana, and exported to America could count
a portion of those Ghanaian components as ‘locally made’, because all
three are party to an Economic Partnership Agreement that allows for
some cumulation of origin.
75
2.4.3 Establishing Common Institutions
and Technical Infrastructure
The complexities of energy issues and challenges differ greatly across the
globe. Each continent requires a unique approach in dealing with these
challenges. However, one elementary logic that has become a universal
best practice in dealing with such issues in any sector is the building of
common institutions and technical infrastructures as a role in productive
regional cooperative efforts. Although milestone achievements have been
made in this regard like the creation of the West African Power Pool and
the Southern African Power Pool in the ECOWAS and SADC regions
respectively, there is need to make them more functional by devolving
more control to regulators that allows for a more liberal trading structure.
74 C Mathews, ‘Western Power Corridor Pact Can Be Revived, Says Reuel Khoza’ [WWW
Document], Business Day, https://www.businesslive.co.za/bd/companies/energy/2017-02-21-wes
tern-power-corridor-pact-can-be-revived-says-reuel-khoza/, accessed March 23, 2020.
75 Ibid.