13 November 2008 – Some US$300 billion in investment in the energy sector is needed over the next 20 years in order for Africa to sustain its current economic growth.
With needs of 13 000MW of power every year until 2030, Vinod Shrivastava, president of Core International, a consultancy based in Tanzania, says this is three times more than the 10 years since 1998.
“Our estimate is conservative,” said Shrivastava, “It is the minimum amount to meet the industrial needs which will fuel economic growth.”
Many of Africa’s countries are suffering from power shortages currently and these shortages are likely to have an adverse effect on economic growth. According to Shrivastava, the challenge is to convince international investors to put their money into projects with a long-term investment requirement.
He continues that risks perceived by these investors include lack of transparency, tariffs which are low and not cost reflective and unstable energy policies.