Experts: Local Content Enforcement Critical to Renewable Energy Growth in Africa
Oluchi Chibuzor
Experts in the renewable energy industry across Africa have called for the strengthening of local content to catalyse growth in the continent’s renewable energy sub-sector across the continent.
Speaking at the just concluded Nigeria Energy Conference in Lagos, the Chief Executive Officer, Auxano Solar, Mr. Chucks Umazulora, said a deliberate shift towards enforcing the local content laws to support players in the renewable energy sub-sector through funding support will increase the capacity of indigenous companies.
According to him, investment in the local manufacturing companies will strengthen the renewable energy sector, improve the local currencies, and expand power access to hard to reach communities in Nigeria and by extension Africa.
He said: “We have Local Content on paper but how is it being implemented? The government must put some protection around their local players. You cannot tell us to compete with the foreigners who get some support from their government. As we are developing projects, the government must incentivise local manufacturing.
“If we have 1,000 mini grid, the Nigerian Rural Electrification Agency can say this 50 mini grid, we want to build this with local manufacturing companies as a test run because if we don’t patronise local companies, who will?”
On his part, Country Director, Nigeria, PowerGen Renewable Energy, Mr. Seun Edun, stated that a reorientation of the public on the need to patronise local manufacturers and its impact on improving the indigenous sector is integral to achieving success within the renewable energy sector.
He explained that such efforts must be deliberately encouraged. “Local manufacturers have a long way to go to compete with foreign manufacturers who have decades of experience.
He said, “If you look at the cost of components of manufacturing, a key driver is FX cost. As long as the appetite for imports keeps rising, our local currency won’t improve. That is clear. We must be deliberate in growing local content. If we are not deliberate, it cannot be done. Importation is convenient but convenience will never lead to real development.”
