Finance, Energy ministers to find solutions to energy crisis

Accra, May 30, GNA - Finance and Energy Ministers from across Africa have begun a two-day meeting in Accra to find sustainable solutions for meeting the financing needs of the energy sector to enhance its contributions to the attainment of the Millennium Development Goals.

The Accra Financing for Development conference, which is on the theme; "Infrastructure for Growth-The Energy Challenge", brings together the donor community as well as some civil society groups to look at sustainable financing options in meeting Africa's financing challenges in the energy sector in the medium to long term and to further deepen the dialogue on financing for development.

It would provide the platform to discuss more results oriented ways of effectively delivering the commitments made by Africa's development partners during the 2005 G8 Gleneagles meeting and propose new strategies for follow-up action.

Currently, as many as 25 African countries are facing electricity supply problems due the combination of high fuel prices, high losses and inadequate electricity tariffs and changing weather patterns that had affected hydro-electric facilities.

It is estimated that increasing access to electricity from the current 24 per cent to 47 per cent by 2030 for countries in sub-Sahara Africa would require doubling of financing from two billion dollars per annum to four billion dollars.

Speaking at the opening session, Mr. Kwadwo Baah-Wiredu, Minister of Finance, said it was important to fashion out realistic financing schemes to ensure that the energy crisis on the continent was dealt with to enhance socio-economic development.

However, he warned that a one-fit-for-all financing scheme might not augur well for meeting the financial requirements of the various countries.

Mr. Baah-Wiredu stressed that two key challenges of additional assistance for investment in power generation and distribution infrastructure and funds to address other developmental needs were urgent to enable the continent to meet the Millennium Development Goals. He expressed the hope that the Accra Conference would assess progress and commitment to realistic time bound targets on aid disbursement to meet the continent's infrastructure needs.

He also expressed the hope that the Conference would address financing challenges within the energy sector, especially explore the various financing options and find ways to encourage private sector contribution in dealing with the energy crisis on the continent.

Mr. Joseph Kofi Adda, Minister of Energy, said inadequate investment in infrastructure over the years had made it impossible to keep pace with increased demand for electricity. Dr. Mandla Gantsho, Vice President, Infrastructure, Private Sector and Regional Integration of the African Development Bank, said energy security was necessary for economic stability and asked the countries to diversify their energy sources to be able to overcome future challenges.