Advancing Africa’s economic status is dependent on attracting investment and private capital. However, your board is likely subconsciously influenced by the perceived risks of funding infrastructure projects in Africa.
Luckily, according to two reports, the market perception is changing for the better. The reports, released this quarter by the African Private Equity and Venture Capital Association (AVCA), show investor confidence in Africa’s economic recovery and Africa’s Private Capital industry maturing.
While current and alternative funding mechanisms will be discussed by industry experts at Enlit Africa on 7-9 June at the CTICC in Cape Town, these reports indicate that Africa is already attracting investment.
According to AVCA’s 2021 Annual African Private Capital Activity Report, the total value of private capital deals reported in Africa reached a record high of $7.4bn, compared to $3.4bn registered in 2020 – surpassing the annual average deal value of $4bn between 2016 and 2020 (+85%). Overall, Financials and Utilities were the largest sectors by value, attracting 19% and 18% respectively from 2016 to 2021.
Enlit Africa will explore not only the efforts being made by commercial and industrial entities to secure their own power supply, but the knock-on effects of such efforts, such as the development of mutually beneficial decentralised renewable energy (DRE) solutions that meet the demands of both mining operations and surrounding communities.
In this context, UNIDO ITPO Germany and the Alliance for Rural Electrification (ARE) are highlighting the opportunity for mining companies and renewable energy providers to enter into partnerships to move towards a sustainable and inclusive mining sector.
Other sessions of interest over the three day event include:
Alternative financing solutions to scale access to energy
Conference sessions at Enlit Africa will additionally consider the role of alternative funding mechanisms, including innovative new asset leasing and construction finance tools providing catalytic capital to mini-grid developers. Inspired by similar asset based financing models used in mature industries such as construction and mining, these new finance tools have been designed to address some of the most important hurdles facing mini-grid developers.
Crowdfunding through crypto-based decentralised finance
Companies providing access to energy products often bundle them with financing solutions to enable customers to purchase expensive solar kits on credit. However, this business model requires high capital to scale. Crypto-based decentralised finance (DeFi), could represent a solution by connecting impact-oriented investors with unbanked rural customers.
Roundtable discussions offer the opportunity to dig a bit deeper
During the Navigating the changing finance landscape in Africa roundtable sessions, attendees will get to join ‘speed’ roundtable sessions and the chance to get to grips with some of the following topics:
- Clean energy funds for Africa
- Commercial vs impact finance to achieve clean climate objectives
- Microfinance / early stage investing for renewable energy
- How can conventional power projects transform and get funding to create renewable energy?
- Is Africa still considered a high risk investment destination?
Table hosts and speakers include Rivhatshinyi Mandavha, Investment Professional, Norfund; Farai Kanonda, Regional Manager: Energy, African Development Bank; Lisa Pinsley, Partner, Head of MENA: Energy, Actis; and Hlompho Vuyo Ntoi, Joint Managing Director, Africa Infrastructure Investment Managers.
The keynote sessions taking place on 7 and 8 June, in line with the focus of the conference theme – Collaboration to fast forward Africa’s energy transition – will focus on understanding the finance options, the priorities and the roadmap of the $8.5 billion Just Energy Transition Partnership announced at COP26.
This agreement between the United State, France, Germany, the United Kingdom, the European Union (EU) and South Africa to support the just energy transition, is an example of the kind of collaborative efforts needed in order to ensure the transition in Africa is supported by finance of appropriate magnitude.
Africa’s economy continues to be fertile ground with attractive investment opportunities for investors in search of yields. This will be seen in June when Africa’s key stakeholders meet with international players to discuss this topic and more in Cape Town this coming June.
Register now to secure your seat at the strategic and knowledge hub sessions at the Enlit Africa conference & exhibition taking place on 7-9 June at the CTICC in Cape Town. Enlit Africa – your guide to the energy transition.
About Enlit Africa:
Enlit Africa (formerly African Utility Week and POWERGEN Africa) is Africa’s leading exhibition and conference, gathering the power and energy industry’s most influential professionals and decision makers from across the continent for three days of relevant, accredited technical and strategic conference seminars, valuable networking opportunities and access to world-class products and solutions.
Enlit Africa is organised by The Vuka Group (formerly Clarion Events Africa), a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, ecommerce and CX sectors.
Eskom, the Department of Mineral Resources and Energy and the City of Cape Town have been official hosting partners of the event for many years and 2022 will be no exception.
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