Changes needed if Africa is to grow its energy infrastructure stock
African Financial Services Industry Conference (AFSIC) hears EAIF’s Emilio Cattaneo say changes needed if Africa is to grow its energy infrastructure stock.
Speaking at the African Financial Services Industry Conference in London on 10th May, Emilio Cattaneo, Executive Director of Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), said that the public-private partnership (PPP) model has been a great success in developing power generation in Africa.
He said it has financed new thermal and renewable plants across the continent, so helping to power economic development while fighting poverty.
“The “blended finance” PPP approach pioneered by PIDG has mobilised billions of dollars of private sector capital.”
But Mr Cattaneo issued a warning that sustained growth in building new energy infrastructure is slowing down.
“The economic effectiveness and commercial viability of new power plants can be significantly reduced where there are weak transmission grids. Poorly run publicly owned transmission and distribution companies too often have credit ratings that can undermine the bankability of generation projects. New investment needs to be channelled into transmission and supply. Operating efficiencies need to achieved to build greater investor confidence in backing African energy projects.”