The sun is still shining on Africa

Interest in solar power and renewable energy sources is helping to drive continued international investment in the continent, according to STANLIB, the US$45bn Johannesburg based asset management operation of the Standard Bank of South Africa.

In the latest report to investors, STANLIB draws attention to continuing support for Africa-based energy projects:

India’s Editia Perla, a specialist in petrochemicals and renewable energy, is to invest up to US$500 million in a project in Egypt to produce the silicon cells needed to generate energy from the sun.

Egypt is to build a 200MW Red Sea wind farm, using a US$388 million loan from a German commercial bank and the European Investment Bank.

In January, Libya starts construction of a US$5 billion energy hub. ‘Smart Energy City’ is a joint-venture between a Libyan state fund and Bahrain’s Gulf Finance House, which will contribute US$3.8 billion.

Tunisia is to build two wind farms in Bizerte Province to generate 400000MW. The project is financed by a US$250 million loan from the Spanish government.

In Nigeria, China’s Shenzhen Energy Group is planning to build a 3000MW power plant in a JV with Nigeria’s First Bank at an estimated cost of US$2.4 billion.

Brazil is to finance the US$555 million construction of Ghana’s Jule River and Puralugu hydro power plants. When completed in 2013, the plants will supply 3 500MW. Ghana’s government is also investing US$400 million to develop thermal power generation and China’s Exim Bank is to finance the US$600 million development of the Bui hydro project.

In Zambia, China’s Sino Hydro is to spend US$400 million to expand the Kariba North Bank power station – a development to help mines on the Copperbelt achieve full potential. Exim Bank will provide 85% of the funds.

Dylan Evans, Global Investment Marketing Director at Standard, notes: “One of Africa's greatest needs is power and fortunately it has the resources to produce it – not just oil, gas and coal, but water, wind and sun.

“NASA has identified part of Niger as the sunniest place on earth. Solar power is therefore taken seriously. Senegal's president has ordered a study into the feasibility of the country becoming totally reliant on this form of energy. Well-informed investors from outside the continent are also interested in African ‘renewables’ and are prepared to commit substantial sums.

“This is a strong pro-Africa signal at a time when risk aversion is the norm in numerous investment markets.”