The extent that Africa can expand its power supply will be defined by its ability to access a range of financial options. The financial options available are increasing with the growing sophistication of the financial markets.
Powering Africa: The Financial Options (PAFO) examined the detail of various options for financing power sector expansion, through both state and private sponsored projects.
The renewed focus by multilaterals on the pivotal role of power in promoting development, the improved growth rates and country risk profiles being seen in Africa, the willingness of commercial lenders to respond positively to the improving fundamentals, the burgeoning interest FDI's are showing in Africa's power sector, and the emergence of large investment funds targeting Africa have all combined to create a feeling of buoyancy. It is important to capitalise on this optimism.

Development of Africa's power sector is at a critical point. The colliding propositions that, on the one hand, lack of power is limiting development and hence demand, and on the other, that the economic expansion of power supply requires first a viable and expanding market should not stifle the present impetus. This development oxymoron is not intractable since the propositions are rarely in balance. Demand is showing noticeable growth and there is scope for still more. Supply needs to increase beyond immediate demand, which in turn will stimulate demand. The financial strain of this short-term supply/demand imbalance should be bearable.
The PAFO meeting provided expert analysis of the suitability of financial packages for the different countries, economic and political environments. A project-finance template that has transcontinental applicability is not feasible. The range of finance vehicles and instruments provide options that allow the tailoring of financial packages to suit individual projects. All parties should be familiar with what is available to enable an informed choice.