Africa urges private investment for credible energy projects
By Lake Kivu, Rwanda (source: flickr/ amalthya, creative commons)
Francisco Rojas
10 Feb 2015
Sub-Saharan Africa might be ripe for private energy investment, but without the necessary public-private partnerships and risk mitigation mechanisms, little funds will be committed to develop the energy sector in the continent.
Energy is clearly a commodity for developed nations, but for some African nations, it is a luxury. Having around the clock, affordable electricity is not only out of reach from the average citizen, it also hinders economic growth and development.
On this particular topic, Voice of America states that energy experts say there is an urgent need for additional public and private investment to bring more electricity to Africa. They say governments need to work with the private sector to bridge power capacity gaps.
While sub-Saharan Africa has enormous untapped resources of gas, oil, coal, geothermal, solar, hydro and wind power, World Bank experts say one out of three Africans lives without electricity. Richard Bernard McGeorge, the lead infrastructure finance specialist at the World Bank, said to speed up private investment, government officials should put themselves in the shoes of the private financiers. He explained that those financiers usually look for clarity, predictability and repeatability when deciding whether to commit resources to an individual project or to a country.
This entails that providing safer, clearer rules, risk mitigation and well-placed mechanisms for speeding up investment and development can accelerate the electrification of sub-Saharan Africa.
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Source: Voice of America
