Complexities in Financing Energy Projects in Africa
Adaku Ufere, Energy Practice Lead; Keseena Chengadu, Associate Attorney; Cynthia Yav, Associate Attorney and Leslie Mamouaka, Intern, write about the complexities of energy project financing in Africa in this month’s Into Africa, a publication from Capital Markets in Africa.
The power sector is a fundamental building block for economic advancement in any country. Abundant, affordable and reliable energy is the cornerstone of growth in today’s world. The great efforts undertaken by the African States to supply sustainable energy to its people have been well documented in the last number of years, along with a shift from conventional fuels to cleaner energy sources. While the need is undeniable, the means, however, remain a point of contention amongst African states and their stakeholders alike. Africa is undergoing a sustained period of economic growth and transformation with both an ever-growing population and diversifying economies, which undoubtedly requires a massive investment in energy.
Consequently, providing greater and more reliable access to energy is one of Africa’s most pressing needs and greatest opportunities. The African continent is relatively underexplored and is today experiencing a modern-day renaissance across various sectors. It currently presents some of the best investment opportunities in the world, attributable to among others, its vast untapped energy resources which, if harnessed and processed efficiently, can provide energy at an affordable cost.
This is an excerpt of the full article. to keep reading, download the Into Africa publication here.