ACCRA, Aug. 25 (Xinhua) -- A Ghanaian expert on Tuesday called on Africa to form a strong partnership with China on energy development for cheaper electricity that will help the continent realize its vision of industrialization.
Benjamin Boakye, Executive Director for Africa Center for Energy Policy (ACEP), said during the 2026 Future of Energy Conference in Accra the Ghanaian capital, that the continent may not be able to realize its value addition and industrialization aspiration and the continental free trade agenda if energy costs remain high on the continent.
Whereas in other jurisdictions, industries pay about six cents per kilowatt-hour (kWh) for electricity, the opposite is the case in Africa, where power costs about 14 to 16 cents per kWh, making products from the continent uncompetitive, due to the energy cost component in their pricing, according to Boakye.
"For industrialization and free trade to succeed on the continent, it is not about importing to sell, but manufacturing at scale and at a competitive cost, so that products in Ghana, for instance, can be exported to other African countries at competitive prices," he highlighted.
The causes of the high cost of energy in Africa, Boakye said, include corruption, sole-sourced contracts, and the high political risk cycle, which makes some investors seek to recover their investments and make profit within the shortest possible time.
The energy expert cited China as an important player in the energy system, which Africa needs right now to deal with the high cost of power on the continent.
In the area of renewable technology, Boakye said "the most affordable technologies available in the world come from China, and that is why we need that level of continental engagement with China on how we reduce the cost of energy."
He said the continent already has untapped resources for cheaper electricity generation, including hydro and solar resources.
"We are seeing imposition of the VAT on export of solar panels and also on battery storage. But that can go off, by intervention. In that proposed conversation, the African Union and its organs should ensure that China partners Africa in a dispensation of cheaper electricity, which is a critical step we need to take immediately," Boakye urged.
