Elumelu tasks US congress on electricity for Africa law
IN seeking for solution for the perennial electricity challenge in Africa, the Founder, Tony Elumelu Foundation, and Chairman, Heirs Holdings Mr. Tony Elumelu, has called on the United States Congress to pass the ‘Electrify Africa Act’ to make a world of difference on the continent.
He told aud“When you leave this place call your Representatives and the leadership of the House and ask them to pass the bill” Elumelu urged members of the packed audience.
Elumelu spoke last week at the Mariott Hotel in Washington D.C; venue of the “Power Africa Summit” where he commended President Obama for working through the Power Africa Initiative to mobilize the private sector to invest $43 billion in the African power sector.
African countries have grappled with the challenges of having a clean and stable power to grow its economy. Having realised the importance of electricity in deepening their economies, countries on the continent have evolved several programs to attain stable power.
For instance in Nigeria, billions of naira have been spent by successive administrations since the return of democratic government in 1999 and the federal government eventually in November 2013 transferred its holdings in the power sector to private intitiatives in its efforts at finding lasting solution to the perennial power problems.
The Electrify Africa Act, when passed into law would preserve and expand President Barack Obama’s Power Africa Initiative by codifying access to electricity as a U.S. foreign policy priority for Africa. The bill has already been passed by the U.S. Senate and voting on it is expected at the U.S. House of Representatives next week.
Elumelu, Africa observed that Africa must win the energy challenge if it seeks to become an industrial power in the 21st century, noting that “power outages on the continent must spark power outrages. The kind of outrage that ignites the activist in us”
Elumelu’s Heirs Holdings; a propriety Investment company, through Transcorp Power Limited has committed $2.5 billion to deliver 2,000 megawatts of electricity under the Power Africa Initiative. Already Transcorp Power is currently generating about 19 percent of Nigeria’s power needs with a target to increase capacity to 25 percent in the near future.
“Power cuts across and has impact on healthcare delivery, job creation, education, food security communications and all other sectors of the economy. It is unacceptable that 600 million Africans lack access to energy in the 21st century” Elumelu said.
The call in Washington DC, follows the joint letter to the U.S. Congress from Elumelu and President of Dangote Group, Aliko Dangote, on behalf of the African Energy Leaders Group (AELG), which they co-founded with other leaders in January 2015.
The letter, similarly urged members of the U.S. House of Representatives to act swiftly and pass this critical piece of legislation to scale up U.S. efforts to help provide Africans with access to electricity.
In continuation of his advocacy for Africa, Elumelu also testified before the U.S. International Trade Commission on ‘The Future of the U.S.-Africa Trade and Investment Relationship’ on the same day.
Chaired by Ambassador Michael Froman, the US Trade Representative, the Hearing is part of efforts by the U.S. government to put building blocks in place for the next phase in its economic relationship with Africa.
As a recognized African business and thought leader, Elumelu was invited to share ideas on how to enhance the U.S.-Africa trade and investment relationships beyond the preferential access to the U.S. market for Africa’s products under the African Growth and Opportunity Act (AGOA), to other tools like free trade agreements and investment treaties among others.
Speaking at the Hearing, Tony Elumelu said Africa does not need another trade agreement or preferential program but a new trade paradigm in the trade and investment relationship with Africa.
He said “It is time to move beyond the unequal exchange of cheap raw materials for expensive finished goods that disadvantages Africa, to one that ensures technology transfer and sustainable economic development, huge economic returns for investors and creates new jobs for both sides.”
Three approaches to achieving this according to Elumelu include applying the principles of Africapitalism; focus on identifying and enabling specific value chains and promoting entrepreneurship.
“Africapitalism can help shape the new trade paradigm because it requires governments, donors and the private sector to work together in “Shared Purpose” to ensure the creation of national plans and supporting policies around specific sectors and related targets, so the private sector can step in with capital and expertise geared to achieve those targets, be they tons of grain produced, megawatts of electricity generated or industrial parks created” he stated.
Apart from Elumelu, testimonies were also taken from Donald Kaberuka, Former President of the African Development Bank, Jim Kolbe, President JTK Consulting, Tom Hart, Executive Director, One Campaign and Scott Eisner, President U.S. Chamber of Commerce.
Elumelu’s engagements in the U.S. comes after the recent visit by a delegation of members of Obama’s Presidential Advisory Council on Doing Business in Africa (PAC-DBIA), along with representatives of several U.S. government trade and investment-focused agencies.
The delegation led by the Honourable Penny Pritzker – U.S. Secretary of Commerce, were on a fact-finding mission to Africa to inform their report to the U.S. President on recommendations to strengthen commercial engagement between the U.S. and Africa, which will result in mutually beneficial growth.
Elumelu who hosted the delegation in Lagos, provided an opportunity to interact and hear directly from young aspiring entrepreneurs drawn from the Tony Elumelu Entrepreneurship Programme (TEEP); an audacious initiative that provides seed capital, training, mentorship and a networking platform for 10,000 African entrepreneurs over a 10 year period.
Endowed with $100million by the African Philanthropist, the programme, which commenced last year with 1000 beneficiaries, is currently in its second year with another 1000 beneficiaries from Africa, scheduled to participate and benefit from the novel entrepreneurship development program in 2016.
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