The annual global power market attractiveness rankings shows that only four sub-Saharan countries are in the world’s 100 most attractive power markets. London-based analysis firm Precergy said that even South Africa was only ranked 42nd, appearing in the top 50.
As the developed world continues to struggle to return to pre-recession economic growth rates and many leading emerging economies, such as Brazil and India, struggle to maintain previously strong and sustained growth, sub-Saharan Africa has emerged as an increasingly attractive regional investment option.
Precergy managing director Adrian John said: "Of course there many reasons for the overall low scores for sub-Saharan African countries, not least the greater levels of political risk and increased difficulty in doing business." John continued "The impact of such factors are illustrated well when one considers that, based on energy resource potential and policy support alone, 23 sub-Saharan African nations appear in the world’s top 100 for solar power, 18 for onshore wind and 17 for gas power. Meanwhile just five, eight, and nine countries respectively actually appear in the overall attractiveness rankings for these specific technology types."
So although it’s clear that sub-Saharan Africa’s power industry has huge long-term potential, it should not surprise anybody that the region continues to encounter significant difficulties in attracting the levels of foreign direct investment in power projects that is required to ensure that insufficient secure power supplies doesn’t begin to inhibit continued strong economic growth.
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