Geothermal energy could attract textile factories to Olkaria, Kenya
Olkaria III plant by Ormat (source: video screenshot)
Alexander Richter
30 Mar 2016
A dedicated industrial zone in proximity to geothermal power generation in Olkaria, Kenya could become attractive for industrial investors, e.g. from the textile industry.
Having reported on KenGen’s ambitions for an industrial park fuelled by geothermal power near Naivasha, Kenya, it seems like investors are having a close look.
To attract investors, Kenya offers the low cost of geothermal power, a dedicated industrial zone close to power production at he geothermal field of Olkaria and subsidies in order to compete with neighbouring countries.
With stable power supply and no transmission charges, Kenya and the planned industrial zone at Naivasha could become quite attractive, particularly for textile factories.
Recently, a trade delegation composed of investors from China, the US, Australia, the Netherlands and Bangladesh visited the area, but the group will also be visiting Tanzania and Ethiopia.
Ethiopia is the leading investor destination of choice in East Africa right now because of low labour costs with low minimum wage. Furthermore, it is easier for foreigners to obtain work permit in the country.
Ethiopia also has low electricity prices and the government is building a separate grid for new industrial zones currently under development.
Source: All Africa
