Sunday, June 22, 2008

Electricity Africa

It is very sad that as Africans, we do not learn from the mistakes or demise of other African countries.
For most part of 2005, 2006, 2007, Ghana was having problem with electricity.
Ghana’s electricity is very “green”; as a matter of fact the “greenest” after wind generated electricity, hydro!
The only problem is that, water is a very tricky business. Both water and wind are dependent on Nature, but water more so than wind.
The water situation in Ghana became so acute that Valco (probably the only industry) that produces something that majority of the world needs, has to shut down.
One can only buy so many basket, carvings and leather goods, and then he is awash in it, and would not buy anymore for a while. But aluminum or aluminium that is a different item. When VALCO went off line, the world market price of aluminum went up more than 10%. Can you imagine THAT! Little Ghana can have an effect on the world price of a commodity overnight, WOW!
Ghanaians have quite an appetite for electronic goods, and Ghana does NOT produce any electronic gadget of her own, everything has to be imported.
Remember, Valco is down, and there is hardly any industry that brings foreign exchange with which Ghana can barter for the electronic goods. Granted, Ghana makes textiles, plastic chairs, plastic plates, and a few plastic cups to be sold to her neighbors, who are just as poor and have their own appetite for electronic goods.

Now it is the Republic of South Africa that is rationing electricity

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