Dalberg Global Development Advisors have released a report that declares West Africa needs to shore up investment capital over the next five years to $65 billion for its economic, social, and environmental development. One of the sectors that can contribute to this development includes renewable energy with the consulting firm saying it has the potential to have more of a significant impact than other industries.
With oil running abundant in the region, shoring up investment might not be too farfetched, although $65 billion is a substantial amount, as West Africa has abundant resources. Nigeria is the continent’s major oil producer and Ghana is the most recent African country to join the ranks of oil producers. Many oil companies are also set to diversify their assets and are venturing into renewable energy, gaining great speed (Oil Giant Total’s Diversification Drive).
The report says that investors need to expand the range of financial products offered to include smaller investments ranging from $1,000 to $100,000. There is a surge in efforts to attract private investors and new or amended regulations being initiated to attract public-private partnerships (PPPs) and ways to introduce more independent power producers (IPPs) into the mix.
Impact investing, which includes making investments to generate social and economic benefits beyond a financial return, has reached an annual total of $3.2 billion in West Africa. At present, roughly 200 impact investors, ranging from private equity and venture capital funds to foundations and development finance institutions, are active in the region. “Impact investors are making billions of dollars in capital available to West African entrepreneurs, but it’s not enough,” says Madji Sock, a partner at Dalberg and director of the firm’s Dakar office.
Alternative Energy Africa is trying to reduce its own carbon footprint in 2011. Ask about our electronic subscriptions and online marketing campaigns specially tailored for individual companies.