Rwanda’s Private Sector Federation (PSF) plans to attract more investors in the energy sector in order to satisfy the electricity demand mainly from manufactures, and to achieve energy cost reduction.
Benjamin Gasamagera, the chairperson of PSF, in a meeting with the senatorial Standing Committee on Economic Development and Finance on the role of interconnection lines to Rwanda’s economic development, expressed concern about the local banks’ lack of interest in investing in the energy sector, especially with the quality and all the potential of energy project proposals in Rwanda that emerge from the growing local manufacturing sector and the developing secondary cities.
In order to attract investors in the sector, the senatorial Standing Committee on Economic Development and Finance plans to create direct communication between Rwanda Energy Group (REG) and the private sector so that they can discuss about the issue.
The taxes paid to import solar power materials, which are currently at 25 per cent; sudden cancellation of Power Purchase Agreement (PPA) signed between REG; and investors and the bureaucratic PPA registration process which can take up two years; are the biggest challenges that the private sector faces that in turn discourage other investors from the sector.
However, Gasamagera, gave assurance that the issues are well known, and he added, “we hope for advocacy to help us find a sustainable solution.”