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Renewable Energies

Energy supply – a key factor for competitiveness

The prime obstacle for business in East Africa is the high price of electricity (5-10 times higher than in Egypt or South Africa) and the low quality of power supply systems. The supply situation is characterized by a high dependency on large scale hydroelectric plants leading to power rationing as a result of dry spells and erratic rainfalls. As a result a number of industrial sectors are uncompetitive. For example the price of cement from any port in Asia is lower than cement produced in East Africa.

EABC’s interest in Renewable energies

In 2006 East Africa was hit by a major Energy crisis particularly affecting the private sector. EABC has consequently defined the Energy sector as a focal area for lobbying and industrial cooperation with the following focus:

  • Lobbying for an improvement of the regulatory environment
  • Facilitate Partnering between EABC members and technology providers from Germany and other European countries as well as finance institutions through conferences and networking 

Lobbying

The EABC Energy sector lobbying strategy developed in 2007 takes up the concerns and interests of EABC members regarding energy issues. Underinvestment, resulting lack of reliable power supply and high energy prices present a major problem for the industry in the region. On the other hand, decentral renewable energy applications provide ample new business opportunities. Besides the need to mobilize private investment as in other sectors the energy sector is highly regulated and traditionally dominated by state enterprises. Investments thus require lobbying for optimal framework conditions.

Main elements of the strategy:

  • Strengthen the economic and industrial development of the region through cheap and reliable energy supply
  • Strengthen the socioeconomic development of the region by increasing access to commercial energy and electricity
  • Strengthen the development of the private sector by developing business opportunities in the energy sector
  • Enhance private foreign and local investment in the energy sector  Generate employment in the fields of renewable energies though local value added
  • Enhance cohesion in the region by increasing cross border investments
  • Contribute to the alleviation of climate change through the increased use of renewable energies
  • Strengthen the role of EABC as a lobbying group to serve its members. 

Conferences & Networking

Frankfurt Renewable Energies Conference

More than 210 participants, among them over 70 representatives from the five member countries of the EAC, and more than 140 representatives from Germany, attended the conference "Invest in Renewable Energies in East Africa”. The conference helped to establish linkages beween technology providers, financiers and companies interested in future-oriented investments in East Africa. For more information on the conference, please see the conference website: http://www.renewableseastafrica.de.

Follow up Conference: Energy – A viable business opportunity (planned for 2009)

EABC and EAC have teamed up to organize an important meeting for business leaders and top government officials from East Africa to address the ongoing energy crisis in our region. This landmark meeting is a follow up to the successful conference held in Frankfurt (see above). We are now aiming at substantiating partnerships and finance solutions to secure “Energy for Business”.

Why you should attend: 

  • Learn about success stories for establishing commercially viable energy supply at the firm level from fellow East African companies
  • Seize the opportunities to partner with technology providers from overseas e.g. Germany and other European countries;
  • Explore business opportunities for innovative renewable energy and energy saving technologies;
  • Learn about use of Carbon Credit Mechanism funds by private sector;
  • Network with finance institutions and investors in renewable and conventional sources of energy;
  • Access profiles of ready for investment energy projects, plus Business to Business linkages for project owners and potential investors;
  • Become part of our network of East African companies lobbying for the improvement of the environment for investments in the energy sector.  

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Further reading

Renewable Energies for East Africa Rationale for Business and Commercialisation
The present report addresses the aforementioned activities and aims to support the process towards reaching the two identified goals, i.e. reliable- and economic energy supply. This would strengthen business activities and, hence, further the region’s development. The report gives a brief overview over the available technology, technical and financial aspects, as well as summarising the existing issues in order to highlight the existing opportunities and risks to all stakeholders, in particular the business community.

Download report here