In Rwanda, the Private Sector Federation is seeking ways to attract investors to the country’s energy sector, which according to a PSF official has “enormous investment potential”.
“Rwanda’s energy sector has enormous investment potential but we are still planning how to attract more investors in the sector to satisfy the electricity demand, especially from manufacturers, and also make energy affordable,” said Benjamin Gasamagera, the chairperson of the Private Sector Federation.
The New Times reported that the country’s current energy coverage stands at 40.7%, including 29.7% on-grid electricity and 11% off-grid energy, with private sector contribution standing at 52%.
Gasamagera revealed that commercial banks are reluctant to support the development of energy projects because they lack the expertise to determine the quality and potential of energy project proposals.
“We are trying to work with the local banks to develop their capacity to analyse proposals from the energy sector. We also plan to approach foreign banks on big energy projects. It is something that needs to be quickly addressed,” he said.
The New Times reported, under the umbrella body, Energy Private Developers, the industry players are seeking collaborations with international partners to make the most of the electrification targets.
The chairperson of the group, Dr Ivan Twagirashema, told media that among the areas where they are seeking partnerships include financing and technical capacities.
Twagirashema said this will see them address long-standing challenges that have held them back from making the most of the opportunities within the sector.
He stated that local firms would consider joint ventures as well as investment collaborations with international investors. Read more…
Currently, it is reported that there are 30 companies, both local and international, that are involved in hydropower projects, which is the largest source of energy in the country.
These have seen about seven privately owned plants with a total capacity of 16MW under different phases of construction with commercial operations dates planned for the near future, media stated.
About 32 projects with a total capacity of approximately 30MW are at early stage development with feasibility studies for about 40 sites taking place.
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