African Power: Political Will ....vs.... Return On Investment
African Power Generation -
This is more of a comment on another comment. I really appreciated the first comment about the pulse, Nigeria 'energy savings day' . The focus of every solution lies in the political will. Whether it is Banking, Telecoms, Petroleum, Manufacturing etc. But not totally dependent on this political will.
I want to point out that efforts can be made even before total support from the government comes in. For example in the petroleum sector......there has been continuous FDI's [Foreign Direct Investment] despite the corruption, political instability, poor security to outside technical manpower. As a matter of fact the risks are higher in the petroleum sector than any other in terms of technical manpower. But there seems to be a continuous inflow in FDI investments. Adding to the fact that the actual "Crude Oil Production" can take up to 5 years to attain. This is most likely because the ROI [Return On Investment] is very impressive in countries like Nigeria.
Where am I going with this......? Chinese foreign investments all over Africa and the globe. What the Chinese have done is simply marvelous. They have looked at each country as they are and simply made allowances for higher risk factors. This helps them seek for the right partners to work with while doing business in developing countries that have all the negative circumstances mentioned above. IT WORKS FOR THEM AND IS PROFITABLE. The truth is countries like Nigeria are growing markets and will absorb Billions of US Dollars from the careful investor who is willing to come to that country and SEARCH FOR THE RIGHT PARTNERS and see for themselves the opportunities available.
So regarding the POWER SECTOR in these countries, search for the right partner and see that it is possible to set up a plant and make government comply. Otherwise countries like China will always take the lion share in Africa and go home smiling. Business schools need to learn a thing or two from Chinese investors and businesses.
THINK OUTSIDE THAT BOX.....THE FUTURE IS REAL AND UNAVOIDABLE.....AFRICA MUST GENERATE POWER.

1 Comment
Africa Must Generate Power.
Very true.
But how? World is generating Power out of:
Coal - Thermal, Hydro-electric, Nuclear, Petro-based products. More than 90% power in world is coming out of these. Petro-based products can last only for next 30 years. Will anyone invest for this form of Captive Power generation.
Nuclear - Will political instability permit US and allay countires to give such technology?
Hydro- Natural resource based and costlier initial investments.
Coal- Thermal - ??? May be possible by importing Indonetian bitumin.
So unless any drastic Nationwide movement (Only possible with Government will), difficult to see large foreign investments coming in. Petroleum investments in Nigeria can always be expected. - Everyone knows the world scenario and world politics due to Petroleum. But the equation of Petroleum products may not work with other sectors.
Best method as per me who is looking from outside, is by initial Power generation through Petroleum Natural gas / Naptha based. This is natural resource of Nigeria.
But a strategic plan to shift from this form to another electricity generation forms. Non-conventional sources can be of good potential. Solar - Abandant in Nigeria, Tidal energy - A good coast line in Nigeria, Bio-mass though natural resources,
Hydra Electric too can be developed over a period of time to replace the Petro gas based generation.
But again as you say. The work for Energy Generation has to start there and with real urgency. No other way out!!!!