In Africa, international investors are betting on renewable energy

In Africa, international investors are betting on renewable energy

11/08/2016 source “Jeune Afrique”

International investors consider renewable energy sector as the most promising in Africa in 2020 and are ready to strengthen their holdings, according to a survey released on Tuesday by the agency Havas Horizons.

“Investors believe in the continent’s ability to become a world reference for renewable energy, their current activity, and privileged in their investments,” says Havas Horizons, a service dedicated to emerging markets launched by the Havas agency and the Choiseul Institute.

“For a long time considered risky, investment in energy projects seems today to have a very significant ROI potential (return on investment)”, says the survey made to 55 financial and banking institutions between January 14 and February 29.

Global trend

According to the study, solar energy is “considered the most promising energy solution in 2020,” and Africa is now entering a “global trend of development of renewable energy in detriment of fossil fuels”.

Despite the falling prices of raw materials and of oil in particular, the survey respondent investors are “confident” in the continent and confirm “their willingness to remain there and even to increase the investment”.

For investors, five countries have “interesting economic prospects”: Ethiopia, Nigeria, Morocco, Ghana and Senegal. However, they get signals of braking on investments, particularly in the energy sector, mainly due to “legal risks and risks related with governance”.