Grounds for optimism in the African electricity supply industry

For too long only a fraction of proposed projects have seen the light of day, but while it is too early to say the African power industry has turned a corner, signs of progress were reflected at EnergyNet’s Africa Energy Forum (AEF) in Berlin on 26-28 June. Veteran southern African project financier Clive Ferreira observed that the African power sector continues to underperform significantly. Projects take too long to reach financial close, procurement processes are not transparent, and low tariffs make investment unattractive. Few could disagree with Ferreira’s conclusion that it is “difficult to make private power work under these circumstances”.