Africa Begs UK Investors for Large-scale Electrification Projects

By Ahmed Rahma

Africa has stressed the need for investors in the United Kingdom to consider investment in large-scale electrification projects on the continent because they (projects) would helpful and significantly drive post-COVID-19 growth recovery and economic prosperity.

On Wednesday, the UK Africa Investment summit was held virtually and had in attendance major stakeholders, including experts, who spoke on the theme UK & Africa: Partnering in Sustainable and Resilient Infrastructure Development.

The panellists submitted that a stronger partnership between the UK and Africa would benefit both parties, especially in terms of economy.

Speaking at the event, the CEO of UK Export Finance, Mr Louis Taylor, African countries are building back better from the coronavirus, adding that this presents an “unalloyed opportunity for UK investors to be part of the African success story and for African countries to access the UK’s support for projects.”

“The UK is still the ultimate one-stop-shop.

“The UK government is still the largest G7 investor in Africa.

“For instance, the UK Export Finance is providing a £1.7 billion guarantee to support the development of Cairo monorail in Egypt, the UK’s biggest-ever overseas infrastructure guarantee,” Mr Taylor added.

According to International Energy Agency data, scaling up Africa’s capacity to achieve universal access to energy by 2030 would require over $100 billion per year, of which 40 per cent would be dedicated to solar, wind and other low-carbon power generation projects.

In his contribution, the Director for Energy Financial Solutions, Policy and Regulation at the African Development Bank (AfDB), Mr Wale Shonibare, noted that, “Building on the City of London’s deep expertise in innovative financial solutions, the AfDB sees promising opportunities to further expand its program to securitize receipts from solar home systems providers.”

Mr Shonibare called for a structured approach to sustainable infrastructure development and the implementation of large-scale electrification programs, citing the bank’s Desert to Power initiative as an example of a project likely to attract interest from UK businesses.

The AFDB has taken the lead in accelerating the electrification of the continent through its New Deal on Energy for Africa, a transformative partnership-based strategy that aims to increase access to energy for all Africans.

Also speaking, the Business Development Director of UK-based NMS Infrastructure Ltd, Mr Nicholas Oliver, urged investors to engage more actively with local companies.

“We need to create partnerships with governments and local businesses. It is a great time to invest in Africa. The AfDB estimates that climate change presents a $3 trillion investment by 2030. What an opportunity,” he said.

The UK Africa Investment Conference, hosted by the UK Department for International Trade, brings together the UK and African businesses to explore the opportunities for partnership and investment.