Standard Bank, which attended the Power-Africa Summit in Washington this week, has put together an infographic as a visual representation of the continent’s power needs and where the company is investing.
At a power financing roundtable as part of the conference, Standard Bank and General Electric reaffirmed their strategic partnership, which has seen both companies commit to a US$350 million financing agreement aimed at improving access to power infrastructure in Africa.
Investment risks and opportunities
Sim Tshabalala, chief executive of Standard Bank Group, said solutions to meet Africa’s growing energy demands will only be possible once developers, governments and funders reach a common understanding of the risks, pricing and regulatory imperatives needed to facilitate the required investment.
“There are significant opportunities and a viable investment case for governments across Africa to provide the lion’s share of long tenor debt funding given the solid returns on investments in power generation and distribution.”
While the continent has seen heavy investment in the natural resource sector, global investors are quickly realising the potential benefits of investments in other sectors such as power and infrastructure. Financial institutions such as Standard Bank are pioneering innovative funding solutions to help close the energy gap on the continent.
“Standard Bank’s view is that there are many financing options on the table, if the economic opportunity is considered seriously,” said Mr Tshabalala. “For example, new generation planning requires a complete financial model. Critical to success is the need for greater certainty in terms of creating environments conducive to investment which then makes it easier to attract the required investment into the sector, especially within emerging markets.”
Infographic: Standard Bank’s view of power in Africa
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