In his report to the House of People’s Representatives last Monday, Prime Minster Abiy Ahmed has stated the significance of privatizing some of the state owned enterprises partially or fully. As a means to revitalizing and maximizing the economy, some enterprises are targeted to be privatized.
In line with this, restating the on-going privatization efforts on the telecom and sugar projects, he uttered plan to develop the energy sector through enhancing energy investment and increasing the participation of the private sector into country’s available renewable resources.
It is clear that nature has endowed Ethiopia with several forms of renewable sources of energy: Hydroelectric, solar, wind and geothermal sources. However, the nation has still used a very minimum of its potential.
The Grand Ethiopian Renaissance Dam, which is under construction, is expected to fill some of the gaps in the energy sector. When the GERD finalized, it is expected to provide sustainable and affordable energy to Ethiopia as well as neighboring countries.
The issue of power is not something to be compromise. To a nation that aspires to achieve economic success, energy is like a backbone. Without it, the overall economic performance of the nation will be crippled.
Foreign investors will lack interest. Local producers will lose patience.
To end this, retrieve the sector and exploit the resources efficiently thereby to maintain sustainable economic growth, promoting and involving private sector needs not waiting.
Nation experiences in other sectors have witnessed that allowing private investors in previously government owned business has became feasible economically and technically.
Allowing private investors to participate in the economic game of the nation has a greatest role to finance public investment, close infrastructure gap and accelerate growth by transferring knowledge.
To this effect, the government has been undertaking a number of encouraging steps aiming at attracting both domestic and international investors and increasing private investment in the renewable energy sector.
Investing on energy sector is investing on fertile land that bears fruit the whole season. It is the most lucrative business all over the world. According to the International Energy Agency, global energy demand will grow by more than 30 percent by 2035 and this growth will get higher in the future. Thus, investing in energy would generate more revenue than any other industry.
In a growing economy like Ethiopia sustainable power supply is not something to be compromise and, active engagement of private investors in the area is not only to benefit investors. It has also a national benefit as well.
In this globalized world the issue of environmental protection is becoming a hot issue and renewable energy is the center of international conferences. Seeing the side effect of emission of Carbon-dioxide, many countries are being attracted by environment friendly sources of energy and investors are eyeing to nations with better renewable energy sources.
Ethiopia is among those nations with untapped renewable energy resources. It has a significant potential to develop hydro, solar, wind and geothermal power and it is a preferable fertile market segment for renewable energy development.
Thus, investing in nation’s untapped natural resources bring about multifaceted advantages for investors.
The Ethiopian Herald July 10/2019
