Generating enough power is a massive challenge facing Africa as the world turns to the continent as the next big investment and growth destination. According to Paul Runge, managing director of Africa Project Access, while power plants are being built from the north to the south, east to west power remains a big issue. “The lack of power inhibits everyone and nearly all the countries have challenges when it comes to generating enough power to service their people and industry – including South Africa,” said Runge. “And it is not because there is a shortage of power projects. Power plants are going up but these are not sufficient to meet the need. And more importantly many power projects hit snags long before they reach fruition.” He said more often than not offtake agreements were not in place, which resulted in projects inevitably being halted. “Until you have buyers with product secured no soil will be turned on any projects – including the building of power plants,” he said. In the meantime, Runge added, the lack of power remained the biggest hurdle for African economic growth and investment. “There really is not a country on the continent that does not have a power problem of some sort. The power crisis is very real.” According to a survey conducted by the World Bank Enterprise, power is interrupted on average for at least 56 days a year on the continent. INSERT 56 The average number of days a year that power is interrupted on the continent.
