Mr. Osi Okonkwo, the General Manager of FrazEnergy Ltd, a subsidiary of Oilserv Group, has called for increased investment and the implementation of specific policies and strategies to advance the development of renewable energy resources in Nigeria and other African countries. He emphasized that these efforts could significantly contribute to the economic diversification of the continent.
Mr. Okonkwo presented his case during a panel discussion titled “Driving Economic Transformation in Global Africa: The Role of Emerging AfriCaribbean Giants” at the 31st Afreximbank Annual Meetings (AAM2024) held in Nassau, Bahamas. Highlighting the importance of renewable energy in the context of Nigeria’s energy transition, Okonkwo noted that a well-executed renewable energy strategy could lead to a cleaner, healthier, and more financially prosperous Africa, generating numerous job opportunities. He emphasized the need to delve deeper into the value chain rather than merely exporting energy and commodities. “There is a necessity to produce solar panels, inverters, and batteries within the continent. There is so much more that can be done,” Okonkwo stated. “However, a strategic approach is required to achieve this.”
Drawing on examples from China, which recently launched a five-gigawatt solar farm—comparable to Nigeria’s entire current power capacity—Okonkwo suggested using China’s model as a template. He advocated for prioritizing transition fuels, particularly natural gas, as a bridge to a cleaner future. Additionally, he recommended focusing on more consistent renewable energy sources such as hydroelectric and geothermal power due to the variability of solar and wind energy.
Okonkwo also stressed the need for clear, streamlined policies that facilitate resource access and funding without hindering private sector initiatives. “Policies should be fewer but clearer, allowing for meritocratic access to resources and funding,” he said. He further emphasized that the private sector plays a crucial role in strengthening African and Caribbean economies and should be supported by policies that encourage innovation and investment.
Supporting Okonkwo’s views, Mr. Jean Louis-Ekra, former President of Afreximbank, highlighted the necessity of shifting African economies from an export-based structure to a more diversified model. He underscored the critical need for basic infrastructure, particularly reliable power, as a foundation for economic transformation. “You cannot achieve significant transformation without power,” he stated. “We need to leverage the African Continental Free Trade Area (AfCFTA) and address fundamental issues such as financial integration to enhance intra-continental trade and seize opportunities in the Caribbean.”
Regarding financial and institutional measures for economic diversification, Louis-Ekra pointed out that Africa has not fully harnessed its financial resources. He emphasized the importance of generating internal resources to support financial institutions capable of driving economic change. “We need to generate resources before discussing financing. Our continent has not sufficiently utilized its financial resources to enable financial institutions to finance necessary changes,” he said.
Dr. Kingsley Mordi, Director of Bono Energy, reinforced the importance of establishing basic infrastructure, particularly in the energy sector, as a prerequisite for economic growth and diversification. He stressed that energy remains a critical component of sustainable development.
In conclusion, the panelists collectively called for strategic investments, clear policies, and robust infrastructure development to unlock the potential of renewable energy, drive economic diversification, and foster sustainable development in Africa.
