The time to tap into its wind and solar resources to turn them into energy for Africa is coming, predicts NJ Ayuk, the Executive Chairman of the African Energy Chamber.
With
China and India taking over world manufacturing and Europe splitting because of
Brexit, Africa could become the new frontier of the energy industry. With a
population of over a billion and abundant natural resources, it could make a
positive global impact. If only its leaders did what’s right.
According
to NJ Ayuk, Executive Chairman of the African Energy Chamber, one of the
crucial steps in this direction for Africa is to unbundle its utilities. In his
latest book, the bestseller Billions at Play: The Future of African
Energy and Doing Deals, Ayuk advocates for unbundling the
vertically integrated utility monoliths, which is not only the logical
solution, it has been proven in countries all over the world.
The
author, a leading authority in the African energy sector and a strong advocate
for African entrepreneurship and the indigenous energy sector knows it is not a
simple fix. On the contrary, this endeavor will take considerable time and
effort.
Dr.
Thabo Kgogo who has served as interim CEO of a large construction and
infrastructure company, Group Five Limited, an independent oil, and gas company
in South Africa, Efora Energy Limited (formerly SacOil), and Vice President of
Operations for PetroSA, South Africa’s national oil company supports NJ Ayuk’s
vision. During his tenure with SacOil, Kgogo called for government policies
that would help support a thriving natural gas industry in South Africa as well
as a departure from the centralized model of power generation.
Kgogo
says, “Ayuk calls it like it is. For example, not everyone is willing to assert
that Africa will never achieve its full potential if it cannot power its
industries, services, or households. He also makes it clear that the state-run
utilities are so saddled by debt they can barely recover their operating and
capital costs, much less make the kinds of infrastructure investments needed to
bring electricity to the continent.”
NJ Ayuk
is visionary, not a dreamer, and his solutions are always actionable. There are
many examples on the African continent on how utilities have successfully
unbundled and privatized. The result has been increased generation capacity and
a more significant number of people with access to electricity.
Unbundling
the unity monoliths will benefit not only the people but will also support the
major oil and gas companies in ensuring that Africans benefit from their
continent’s resource wealth. It would also help them take one step further and
stop relying solely on fossil fuels.
According
to N.J. Ayuk, the majors need to begin thinking of themselves as energy
companies and acting accordingly. That means no longer simply extracting oil
and natural gas but harnessing Africa’s ample wind and solar resources and
turning them into energy for the Africans.
NJ Ayuk
is Founder and CEO of the Pan-African corporate law conglomerate, Centurion Law
Group, Founder and Executive Chairman of the African Energy Chamber, and
co-author of Big Barrels: African Oil and Gas and the Quest for Prosperity
(2017). He is recognized as one of the foremost figures in African business
today.
His
latest book, Billions at Play: The Future of African Energy and Doing Deals, is
available in hardcover and digital versions on Amazon.
