Garowe (PP News Desk) — President of Puntland State Said Abdullahi Deni gave a keynote speech at the Environment and Climate Change Conference in Garowe. President Deni described exorbitant electricity prices as a drag on economic growth in Puntland.
“Puntland Government is aware of exorbitant electricity and water prices charged by utility companies. The Government is a major investor in utility companies” said President Deni.
President Deni said there were pilot plans to increase the electricity supply in the Bosaso, the commercial city. “UAE government has donated seven megawatts of electricity supply for Bosaso. In addition, a private company will supply nine megawatts of electricity. This development will boost productivity and spur growth in small-scale factories in Puntland. We plan to introduce public-private partnership utility enterprises. The government will set utility prices“ said added President Deni.
Interventionist economic policies to be pursued by the incumbent administration discourage investment in utility companies. “Competition is what Puntland consumers can benefit from. The Government shouldn’t be aiming for a role to set electricity and water prices because investors will flock to more profitable industries. This will unnecessarily lead to monopoly” says Mohamud Ali, a business economist in Bosaso.
President Deni criticised investors seeking quick but higher profits in the shortest possible time.
© Puntland Post, 2021