Power & infrastructure

Inadequate power and infrastructure have been identified among the major impediments to rapid growth and development in Africa, and are increasingly seen as investment opportunities to be met with a wide range of options.

For power, they range from traditional power stations reliant on dams or thermal power feeding into a national grid, to new off-grid and mini-grid solutions based on renewable energy. Companies providing solar and wind power have great new opportunities to service long-neglected rural areas, giving a substantial boost to their productivity while ending the long wait for the grid pylons.

For other infrastructure, such as roads, railways, airports and ports, many governments across the continent now welcome private investments as well as private-public partnerships. In Nigeria, Transnet of South Africa had formed a consortium that initially included General Electric to manage the country’s narrow-guage rail line, while new funding is being channelled to a high-speed standard-guage national network. Ethiopia, Kenya and South Africa are among countries making new investments in rail infrastructure, offering opportunities to investors and service companies.

Energy was considered so critical to Africa’s development by the Obama administration in the U.S. that it launched Power Africa initiative in 2013. It’s purpose was to harness available technical, legal and administrative expertise to add some 30,000 megawatts of renewable power toward powering the 70 percent of the sub-Saharan Africa population that lack access to electricity.

Some of the signature projects in Africa include Ethiopia’s 6,000 megawatt Millenium Dam dam on the Blue Nile, which has been a source of tension with Egypt, the 11,000 megawatt Inga Dam in Congo, said to be the world’s largest ever, and the Chinese-backed 4,050 megawatt Mambila Dam in northern Nigeria. Whether investing big or small, investors need to know the terrain and be assured they’re dealing safely.

This is where the knowledge and contacts of our team come into play. We’ll do all the research necessary to determine if the risk is worth it and present you a report that puts the situation in full clarity.