Energy supply in East Africa is characterized by high rate of power rationing, high energy prices, and low electrification rates, further increasing the cost of doing business in the region. For example the price of cement from any port in Asia is lower than cement produced in East Africa.
“The prime obstacle for business in East Africa is the high price of electricity, which are 5-10 times higher than in Egypt or South Africa,” said Mr Charles Mbogori, EABC Executive Director. “EABC has therefore identified the energy sector as a priority area for action,” he added.
The East African Energy Master Plan, whose strategy is to exploit resources and to share power among the countries through the creation of inter-connectors for power
However, investments in the energy sector are, to a large extent, still controlled by the public sector, which still struggles to deliver the capacity to cover the rapidly increasing demand. Current energy policies in many partner states are not well developed and do not provide incentive for private sector investment.
The conference will therefore look at the current policy framework with the aim of developing policies that will accelerate private sector investments in the energy sector.
The conference is also expected to come up with practical solutions to the current energy crisis in short and medium term. East Africa Community has abundant energy resources such as hydropower, geothermal, solar and bio-energy.
However, its energy sector is largely reliant on conventionally generated power. “Renewable energy sources could play an important role in ensuring secure long-term sustainable energy supplies and in addition reduce the cost of doing business,” Mr Mbogori said.
The East African Business Council is an apex body of business associations in Kenya, Uganda, Tanzania, Rwanda, and Burundi with the aim of promoting private sector’s regional and global competitiveness in trade and investment. Founded in 1997, EABC has been actively involved in lobbying on behalf of the private sector to ensure that issues affecting the private sector in East Africa are properly addressed.