Namibia is a beautiful country and i say so because it has unique geography and topography covering over 825,419 km² and borders 5 major countries. However, this beautiful landscape is the center of gravity when one looks at the population (approx 2.5 million) and its spread over the country resulting in approximately 3 person / km².
There lies the “Achilles heal” as economies of scale tend to be only practical in urban areas. This leaves at last check 52.2 % of people with NO access to electricity for lighting (National Housing and Income Survey – 2015/2016) and 80.7% of these people with NO access to electricity for lighting exist in the rural areas.
Hence, any investor that is looking at investing, seeks to do this in the traditional way looking only at the most ECONOMICAL options which ultimately mean investing (IPP investments) in grid assets and leaving off-grid investment starving.
it is therefore a good time for funds such as GIPF and the DBN that have state backing to support “brave investors” that will look at investing in rural areas. The spin off benefits to society are huge with benefits such as reduced urban migration, attraction of skills to rural areas because of modern energy services, access to ICT, improved lifestyles etc.
So isn’t it time we have modern energy service investments in rural areas or are we only interested in terminology such as ROR, ROI, IRR, WACC, DSCR and not people?
The views expressed are done in the interest of stimulating debate that hopefully will result in solutions that grow Namibia!
Conversation continues at info@rdjconsulting.co.za http://www.rdjconsulting.co.za
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