Why privatised electricity cannot drive industrialisation, create jobs in Africa — Odigie

General Secretary of the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa), Comrade Akhator Joel Odigie, explains why he believes electricity privatisation is undermining Africa’s industrialisation and job creation prospects. In this interview with CHRISTIAN APPOLOS, he calls for public-led energy investment, affordable electricity and a just transition that protects workers while advancing Africa’s development aspirations.

WHY do you believe privatised electricity cannot drive industrialisation and create jobs in Africa?

Africa cannot achieve meaningful industrialisation on the basis of privatised energy. It is unrealistic to expect industrialisation to thrive under an arrangement that excludes communities and leaves rural populations without reliable electricity.

Energy is central to industrial development, economic inclusion and job creation. If electricity is expensive or unavailable, manufacturers cannot produce goods at affordable prices, businesses struggle to remain competitive, and the economy loses opportunities to generate employment. Electricity is not just a commodity to be sold for profit; it is a strategic resource that supports development. If Africa wants to industrialise, governments must take the leading role in ensuring that electricity is reliable, affordable and accessible to households, businesses and industries.

We challenge proponents of privatisation to identify one industrialised society that achieved industrialisation through a system based entirely on privately controlled electricity. Our position is that governments must provide the foundation for industrial development, with electricity policy driven by the broader public interest rather than commercial considerations alone.

How do high electricity tariffs and unreliable power supply affect manufacturers, businesses and their capacity to create jobs?

The consequences are enormous. How can manufacturers produce goods affordably when energy costs are so high? How can businesses remain productive, create jobs and sell their products at prices ordinary people can afford? When electricity costs rise, businesses face higher operating expenses. Manufacturers may be forced to increase the prices of their products, reduce production or struggle to compete with imported goods. Small businesses, which often have limited financial resources, are particularly vulnerable.

Where public electricity supply is unreliable, businesses may have to seek alternative sources of power, adding to their production costs. These pressures undermine productivity, discourage expansion and can limit the capacity of enterprises to employ more workers.

The problem extends beyond businesses to households and communities. When people cannot afford electricity, they are left in darkness despite the importance of energy to education, healthcare, communication and economic activity. This is why we insist that electricity policy must be assessed not only by the commercial returns it generates but also by its impact on production, employment, affordability and people’s welfare.

Nigeria has privatised its electricity generation and distribution sectors, yet consumers and businesses continue to complain about poor supply and high bills. What does this tell us about the limitations of the privatisation model?

Nigeria provides an important example of the challenges associated with the privatisation of electricity. Despite the transfer of generation and distribution assets to private operators, many Nigerians continue to struggle with unreliable electricity supply and high bills. There is a popular expression that people pay for darkness.

Our concern is that electricity privatisation has not adequately addressed the needs of ordinary citizens, rural communities and businesses that require affordable and reliable power to function effectively. The question is whether the arrangement is delivering the wider economic and social benefits Nigerians expect. If electricity remains expensive and unreliable, how can manufacturers expand production, create jobs and contribute meaningfully to national development?

We are also concerned about the prospect of further increases in electricity costs. When energy becomes increasingly unaffordable, the burden falls on households, workers and businesses, including those that are expected to drive economic growth.

The Nigerian experience reinforces our position that electricity must be treated as a strategic public service. The objective should be to ensure that people and businesses have access to the energy they need, rather than leaving access and affordability primarily to the dictates of commercial interests.

Mission 300 aims to expand electricity access across Africa, but ITUC-Africa has raised concerns about its privatisation-led approach. What specifically concerns you about the initiative?

Mission 300 is an initiative involving the World Bank, the African Development Bank and other partners to address energy poverty in Africa. About 600 million Africans lack access to electricity, making the expansion of access an urgent development priority.

We support the objective of addressing energy poverty, but we disagree with the approach. Mission 300 relies on a privatisation-led pathway, and we do not believe this model can adequately deliver electricity to everyone, particularly rural communities and low-income households.

Our concern is that the drive to expand electricity access could prioritise commercial viability over universal access and affordability. Communities that are less profitable to serve may not receive the attention they need, even though access to electricity is essential to their social and economic development.

We also question claims that 50 million people have been electrified or connected to the national grid through the initiative. These figures must be supported by verifiable evidence. Existing government efforts and public rural electrification programmes must be properly distinguished from what Mission 300 itself has delivered.

We believe the figures should be independently examined to establish the initiative’s actual contribution. Beyond the numbers, the more fundamental questions are whether electricity is affordable, whether supply is reliable, whether businesses are becoming more productive and whether the initiative is generating decent jobs. Africa needs an approach that measures success by improvements in people’s lives and the strength of its productive economy, not simply by the number of connections reported.

Beyond expanding electricity access, how should African governments assess whether their energy policies are creating decent jobs and improving workers’ living standards?

Governments must look beyond electricity connections and examine the wider effects of energy policies on employment, production and people’s welfare.

We must ask fundamental questions: Has electricity privatisation in African countries led to more jobs or job losses? Has it improved people’s welfare, or has the cost of electricity made life more difficult for households and businesses?

Electricity is closely connected to the ability of enterprises to operate, expand and employ workers. Where energy costs are too high, businesses may find it difficult to sustain production or recruit additional workers. Where supply is unreliable, productivity suffers and opportunities for economic growth are weakened.

We must also consider the quality of jobs being created. Africa already has a large population of working people whose earnings are insufficient to meet their basic needs. Employment should provide a pathway out of poverty, not condemn people to a lifetime of economic insecurity.

Energy policy should therefore support productive investment, decent work and better living standards. Governments must ensure that the benefits of electricity infrastructure reach workers, small businesses and communities, including those that private operators may consider less commercially attractive. Our position is that public leadership is essential if electricity is to serve these broader development objectives.

What alternative energy model is ITUC-Africa proposing, and what role should governments play in ensuring affordable and reliable electricity for industrial development?

Through our Restore and Reclaim campaign, we are advocating the return of electricity to public control rather than leaving it in the hands of private operators.

We believe African governments must take responsibility for building energy systems that support industrialisation, economic inclusion and universal access. Electricity is too important to the continent’s development to be treated primarily as a commercial undertaking.

Governments must invest in electricity infrastructure and ensure that energy policies respond to the needs of manufacturers, workers, rural communities and households. Public investment should support the expansion of access, improve reliability and make electricity affordable for those who need it to produce goods, provide services and earn a living.

We are not arguing that the private sector has no role to play. Our concern is that the current arrangement gives insufficient priority to public interest, affordability and universal access. The central issue is who determines the priorities of the electricity sector and what objectives those priorities serve. If the overriding concern is commercial returns, communities and businesses that cannot afford high tariffs risk being left behind. Africa needs an energy model in which governments provide clear leadership and ensure that electricity supports industrial development, job creation and improved living standards.

Does your position mean African governments should exclude private investors from the electricity sector, or can private capital play a role under a publicly led energy system?

Our position is not that the private sector must have no role in the electricity sector. We recognise that private capital can contribute to investment and infrastructure development.

However, such participation must operate within a framework that protects the public interest. Governments must retain the capacity to determine the direction of energy policy and ensure that affordability, reliability and universal access are not sacrificed to commercial interests.

The challenge is that when electricity provision is organised primarily around profitability, the needs of rural communities and low-income households can become secondary. These are precisely the communities that require deliberate public investment if they are to participate fully in economic development.

We therefore believe governments must take the leading role in planning and delivering energy systems that serve the entire population. Private participation should complement this responsibility rather than replace it.

The ultimate test is whether the system delivers affordable and reliable electricity, strengthens productive industries, creates decent jobs and improves people’s welfare.

How can African countries expand electricity access, industrialise and create jobs while pursuing a just energy transition that protects workers and communities?

A just energy transition must not leave people behind. Africa’s development aspirations must not be sacrificed in the name of environmental protection.

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When we speak about a just energy transition, we are talking about moving away from fossil fuels towards cleaner energy sources to protect the environment. But the transition must also take account of the continent’s development needs, including the need to expand electricity access, build industries and create decent jobs.

Africa contributes relatively little to global pollution compared with highly industrialised economies. The continent’s low level of emissions is also linked to its limited industrial development. Countries that industrialised extensively have contributed significantly to the pollution problem, yet Africa is being asked to bear some of the consequences.

That is why we insist that polluters must pay. Those who have contributed most to environmental degradation must help finance a just transition, so African countries can expand access to energy, industrialise and create decent jobs without being trapped in poverty.

The transition must also protect workers and communities whose livelihoods may be affected by changes in energy production and use. Governments must ensure that workers are not abandoned as economies move towards cleaner energy sources.

Ultimately, climate action and industrialisation should not be treated as opposing objectives. With appropriate financing, public investment and policies that put people first, Africa can pursue cleaner energy while expanding productive capacity, creating employment and improving living standards.