Title: Developing the Energy Sector in Africa Private Sector involvement
1Developing the Energy Sector in Africa Private
Sector involvement
Danida development Days June 2009
Youssef Arfaoui
2- Outline
- Energy Highlights from Africa
- Infrastructure Investment in Africa
- Way forward Conclusion
3Africas Energy resource Potential
4Africas Energy resources Energy production in
Africa is around 9,5 of the world output but
consumes . only 3.
5Highlights Energy supply Africa High Need for
Investment in the sector
6 Indicative List of Regional Projects
7 Indicative List of National Projects
8Clean Energy Investments
9Operational Results (Achievement)
10The Eskom project is the banks largest
non-sovereign loan
- Southern Africa
- Investment USD 30 B
- ADB loan USD 500 M
- ADB roles
- Long-term lender
- Regional partner
- Benefits
- 100 power access
- Jobs, growth
- Regional expansion
11The Pan-African Infrastructure Development Fund
(PAIDF) is one of the largest infrastructure
equity funds in Africa
- Pan-African
- Investment USD 650 M
- ADB equity USD 50 M
- ADB roles
- Regional sponsor
- Fund mobilization
- Benefits
- Regional infrastructure
- African pension funds
12The 250MW Bujagali Hydroelectric Power Project, a
catalyst for Power Sector Reform
- Uganda
- Project Cost USD 736 M
- ADB loan USD 110 M
- ADB roles
- Project Structuring
- Long-term Lender
- Benefits
- Independent power project (IPP)
- Expand the supply for electricity
- Reduce generation cost
- Long-term socio economic benefits
13The 15MW Sahanivotry Small Hydroelectric Power
Project, a catalyst for Power Sector in Madagascar
- Madagascar
- Project Cost USD 13 M
- ADB loan USD 6 M
- ADB roles
- Project Structuring
- Long-term Lender
- Benefits
- Independent power project (IPP)
- Expand the supply for electricity
- Reduce generation cost
- Long-term socio economic benefits
14Although . Africa is mostly affected by the
various Crisis
- A. Energy Crisis
-
- Draughts ( Climatic change)
- Oil price fluctuation
- B. Financial Crisis
- Revenue Drop
- Foreign Direct Investments reduced
15Way forward
- Africa needs to continue it investments
programs in particular in the Energy sector - New Credit facility put in place by the AfDB
- AfDB Capital increase to be supported
- Assistance to Low Income Countries (LIC) with
concessional resources (ADF) - Support Private Sector investments in Africa
16Africa Commissions energy initiative
implementation structure
Donors
Technical assistance from The donor
Implementing Agency AfDB
Country Offices participation
- Executing Agencies (Option.1)
- 1. AFREPREN Kenya
- 2. GTIEA- East African Tea Trade Association
- The project pipeline is available and Studies are
done
Executing Agency (Option.2) The Bank Departments
(OPSM and Public sector ) Access direct to the
Funds through FAPA Grant and seed Capital
- Executing Agency
- Financial institutions
- Line of credit from the AfDB
- a. Project financing
- b. Assist the sponsor to develop the project
- Capacity building
- Policy development
- Strategy development
- Etc
Project sponsor
Project developers / Project sponsor
17In Summary
- Opportunity for lucrative investment in Africa
expanding rapidly. - Investment climate improving, but remains
challenging with region and sector specific
knowledge critical. - The Infrastructure Finance Team is a partner that
provides the key expertise required to facilitate
investors/project sponsors achieve business
success in Africa whilst harnessing sustainable
development.
18THANK YOU
Sidi Salem hydro-electric,Tunisia Photo
Youssef Arfaoui