Access to affordable and efficient energy is critical for development and investment on the continent and while the continent has seen rapid and meaningful economic growth in the last decade it is trailing behind most others with regards to energy security.
A major challenge to the African energy sector is funding for energy projects. Political and credit risk remain critical factors hindering potential investors from investing in the energy space of Africa. Alleviating this investment challenge necessitates the development of new and innovative funding solutions and approaches that befit the African landscape. If successfully employed, these funding initiatives should assist in terms of bankability, ultimately bolstering project development in Africa’s energy sector. Inaccessibility of power is another major challenge on the continent with many outlying rural areas still without access to electricity because of poor grid infrastructure and vast distances between which power needs to be distributed.
