More efficiency in utility services urged

THE proper regulation of utility services would invite more investment to the continent to expand existing infrastructure and services, which currently reach very few.

This was the consensus at the start of a conference of regulatory bodies who are members of the African Forum for Utility Regulation (AFUR) in Windhoek yesterday. AFUR Chairperson Smunda Mokoena, who is also the Chief Executive Officer of the National Energy Regulator of South Africa, said yesterday that utility providers in Africa faced a tight balancing act between the economic realities of providing these services and affordability for consumers.”AFUR is about providing a conducive environment for investment, therefore it doesn’t make sense to just invite Government but also the captains of industry,” said Mokoena.The conference is meeting under the theme ‘Regulatory Governance: Exploring Innovative and Hybrid Models’.World Bank representative Eric Groom said if governance within utility providers was improved, it would result in better provision of services.He pledged the international bank’s support for achieving this.Africa is a continent where the majority of the population live in rural areas and do not have access to basic services or the means to pay for them.Committees on energy, water and sanitation and telecommunications began their deliberations on Monday to review progress made in these sectors and to plan future projects.Both the Electricity Control Board (ECB) and the Namibia Communications Commission (NCC) belong to AFUR, whose current membership is expected to grow from six to 10 by the end of this conference.Namibian Minister of Mines and Energy Erkki Nghimtina, who opened the conference, said it was an absolute necessity to build the capacity of existing regulators and encourage the establishment of more independent regulators to instil confidence in the private sector to invest in the development of infrastructure.Representative from the African Development Bank, Ini Urua, said the fact that utility infrastructure in Africa was historically state owned had affected the provision and expansion of services.All too often, he said, governments were not able to carry out the necessary maintenance and expansion of infrastructure and the mismanagement of assets, the lack of transparency, huge debts and political interference had affected the provision of services.He also pledged US$6 billion to support infrastructure development in Africa under the New Partnership for African Development (Nepad).AFUR Chairperson Smunda Mokoena, who is also the Chief Executive Officer of the National Energy Regulator of South Africa, said yesterday that utility providers in Africa faced a tight balancing act between the economic realities of providing these services and affordability for consumers.”AFUR is about providing a conducive environment for investment, therefore it doesn’t make sense to just invite Government but also the captains of industry,” said Mokoena.The conference is meeting under the theme ‘Regulatory Governance: Exploring Innovative and Hybrid Models’.World Bank representative Eric Groom said if governance within utility providers was improved, it would result in better provision of services.He pledged the international bank’s support for achieving this.Africa is a continent where the majority of the population live in rural areas and do not have access to basic services or the means to pay for them.Committees on energy, water and sanitation and telecommunications began their deliberations on Monday to review progress made in these sectors and to plan future projects.Both the Electricity Control Board (ECB) and the Namibia Communications Commission (NCC) belong to AFUR, whose current membership is expected to grow from six to 10 by the end of this conference.Namibian Minister of Mines and Energy Erkki Nghimtina, who opened the conference, said it was an absolute necessity to build the capacity of existing regulators and encourage the establishment of more independent regulators to instil confidence in the private sector to invest in the development of infrastructure.Representative from the African Development Bank, Ini Urua, said the fact that utility infrastructure in Africa was historically state owned had affected the provision and expansion of services.All too often, he said, governments were not able to carry out the necessary maintenance and expansion of infrastructure and the mismanagement of assets, the lack of transparency, huge debts and political interference had affected the provision of services.He also pledged US$6 billion to support infrastructure development in Africa under the New Partnership for African Development (Nepad).