Investing in Africa's Energy Infrastructure

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Sept. 27 (Bloomberg) -- Tony Elumelu, executive chairman of Heir Holdings, discusses investing in Africa's energy infrastructure. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Of the biggest taking companies in africa and how you are moving on to power an electricity.

The story typifies the african story.

The story of investment opportunities and the story of higher costs in africa.

We started in 1997. we turned it around and created a level where you can [indiscernible] they came together through a measure.

And now one of the leading african banks and africa.

In paris and london.

Click super together this inking behemoth in africa and then you segued into another role with another company called trans corp.

And they have hospitality and agribusiness and power generation.

Why did you do this?

I realized the best way to attract investors [inaudible] but the african private sector -- by leading the way.

I thought it was time to explore opportunities.

One of the opportunities was electricity.

Children cannot do well in school because they are not able to do homework at home because of a lack of access to electricity.

We decided to invest in power.

We committed $2.5 billion to have electricity.

Electricity is key.

We want to be in the forefront so we have touched millions of lives in africa.

In order to do this you have got to get people to believe that the project can get done.

How are you doing that?

We have invested in the first power plant that has capacity for 1000 megawatts of electricity.

We are in partnership to increase the capacity.

And subsequently double the plant.

We can have a minimum of 2000 watts of -- megawatts of electricity.

We want to [inaudible] what is the time from for this?

The timeframe is now.

We hope in the next 18 to 24 months [inaudible] we have a track record.

It was nothing when we took over.

The market understands that there are opportunities in africa and there are people who can [inaudible] the electrify africa act in the u.s. house of representatives.

I will be testifying before the house to talk about the opportunities and talk about the kind of support africa needs to make this work.

You talked about something called africapitalism.

Having worked in the private sector and brought up in africa and worked in africa all my life, i realized the private sector as a key role to play in the development of africa.

Where calling in the private sector to invest long-term in sectors that hates -- have capability for creating dynamic asperity and social worse.

We think we can do well and do good.

The investment where discussing is a case in point.

We make money.

We're looking at an investment of close to three years.

Only in africa do you have a potential like that.

It is a win-win situation.

That is the concept.

When you are around the world outside of africa and you talk about these challenges and you talk about your plans, what is the biggest misconceptions that you find from people who have never even been to africa and just read the headlines?

There are two things.

People think about africa is -- as famine and aids and they do not inc.

About -- think about economic opportunities.

You have challenges in every society.

The challenges we have in africa are not unique area there are opportunities and people who want to [inaudible] should look in that direction.

Africa has consistently generated gdp growth in excess of five percent.

The second misconception is thinking all they need is charity and aid.

We need to have people invest.

This text has been automatically generated. It may not be 100% accurate.


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