Sub-Saharan Africa is starved of electricity. 600 million people across sub Saharan Africa have no access to electricity and with the exception of seven countries, the average grid access rate is only 20%.
While China recreates Africa’s installed electricity capacity every 18 months, Africa’s power sector remains significantly underdeveloped across the spectrum from energy access to installed capacity and average per capita consumption.
There are only six listed African power companies versus over 350 in global emerging markets. These have raised less than US$3 billion out of a total listed equity issuance for the global power sector of US$1.4 trillion over the last 25 years.1
There is strong international support for the development of the sector not only from the DFI’s, but from the launch of major initiatives such as “Power Africa”, “Sustainable Energy for All”, and the “Africa 50” fund, all of which are designed to attract substantial international support, public and private sector funding for the sector.
The power sector in sub-Saharan Africa offers a unique combination of transformative potential and attractive investment opportunity.
Africa has higher long term GDP and population growth forecasts than China, but it has less than 1/3rd of the forecast total power sector investment.2
1Source: Thomson Reuters2Source: Atomic Energy Agency