What the future holds for Africa’s power utilities

Power utilities in Africa have long been a significant obstacle to the continent's economic growth. South Africa's Eskom has been a known hindrance to progress due to its reliance on harmful fossil fuels, inefficiency, heavy indebtedness, and overall lack of profitability. However, with the global shift towards cleaner and sustainable energy sources, there is now a pressing need to transform African power utilities into agile and sustainable entities. This transition is crucial for driving economic development, ensuring energy security, and mitigating environmental impact. To shed light on the future of power utilities in Africa, Ibrahima Konate, Manager of the Power Utilities Division at the African Development Bank, shared insights during a recent interview on CNBC Africa. Konate highlighted the African Development Bank's commitment to spearheading the transformation of power utilities across the continent. He emphasized the importance of embracing renewable energy technologies, enhancing governance structures, fostering human capital development, promoting sustainability, and fostering strategic partnerships. The bank's vision, termed 'Light Up and Power Africa,' aligns with the 'New Deal on Energy for Africa,' focusing on revitalizing power utilities as key players in the energy sector. Under the 'Sustainable Utility Transformation' initiative, the African Development Bank aims to revamp power utilities to meet global standards of efficiency and profitability. The bank recently launched a competition, 'African Utility of the Future,' to encourage innovation and excellence in the sector, promoting best practices and collaboration among stakeholders. Konate underscored the bank's comprehensive approach to energy sector financing, with investments exceeding $20 billion in the energy sector since the early 2000s. Notably, a significant portion of these investments has been directed towards power utilities, emphasizing the bank's commitment to supporting the sector's transformation. Beyond financial support, the African Development Bank is actively engaged in advisory services, working closely with governments to strengthen governance structures and foster sustainable partnerships. The bank's holistic approach reflects a long-term commitment to building resilient and efficient power utilities that will drive Africa's energy transition and economic growth.