Conducive energy regulatory environment to attract investment in Africa

The energy sector experts from the government of Seychelles, the UN Economic Commission for Africa and the RES4Africa Foundation held today a virtual meeting to discuss the energy policy and regulation related to attracting the participation of the private sector .

The meeting is part of a continental effort to address regulatory barriers to private sector participation in the energy sector Similar validation meetings have been held with experts in Angola, Ethiopia, Ghana, Kenya, Mauritania, Morocco, Rwanda, South Africa, and Zambia. The regulatory review work currently being carried out across Africa is part of the ECA Executive Secretary’s initiative under the SDG7 Finance Initiative, which seeks to strengthen the sector’s governance to crowd-in investment in the energy sector. SDG 7 goal seeks to ensure access to affordable, reliable, sustainable and modern energy.

At the meeting, Mr Yohannes Hailu, Economic Affairs Officer at the ECA said that Seychelles has achieved 99% household electricity access, nearly meeting the SDG7.

ECA stresses that investment in energy infrastructure at both the national and regional level is required for future economic growth and prosperity on the continent. Africa needs to strengthen its regulatory environment in the energy sector to facilitate effective private sector participation and help close its energy infrastructure gap, increase competitiveness and attain inclusive and sustainable development.

Hailu reminded the participants that once Seychelles addresses some of the key regulatory barriers, it could tap into private sector investment opportunities to meet its financing needs. UNECA and RES4Africa Foundation are partnering to work with relevant national institutions to make that happen.

Andrea Renzulli, Energy expert at RES4Africa Foundation stressed the importance of ECA and his institution to support Seychelles in regulatory improvements to crowd-in private sector investment on the basis of the joint regulatory review undertaken. He said that RES4Africa Missing Link initiative is well suited to respond to this need working closely with national institutions.