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The 5th Powering Africa: The Financial Options was held at the Serena Beach & Spa, Mombasa. Click here to download the agenda.

AEF 2007

The Power of Money

The fifth edition of the PAFO executive dialogue returned to Mombasa, Kenya, where it was launched in 2007. The industry was then riding high, but the financial crisis of 2008 soon put pay to that. The spluttering recovery looked like it was about to take hold by the middle of this year, only to face a collapse of confidence as Standard & Poors downgraded the USA’s debt rating and Europe’s sovereign debt crisis threatened to derail the region’s nascent economic growth. Much of the blame for the recent turmoil in the markets has been laid at the door of politicians, either acting too indecisively, too slowly or too dysfunctionally. But some commentators believe that the markets have overreacted and that governments have little room for manoeuvre. The markets are expected to return to a semblance of calm once they realize their folly.

This all sounds familiar. African governments getting the blame for failing to provide the support needed to develop power projects. The absence of sovereign guarantees being cited as a problem. But no evidence that there would be large-scale default on African power projects.

The objective at PAFO 5 was to encourage constructive discussions on how government and the private sector can partner to create an environment conducive for power development in Africa. Power provision is far too important to fall victim to the paralysis of blame.

Each region has its own unique set of circumstances, and therefore what works for one need not necessarily work for another. But this does not mean that features of one procedure cannot be successfully adopted by another. References to procedures adopted in Latin America and the Middle East were included in the agenda. The nature of the PAFO executive dialogues facilitates interaction and the exchange of information. Participants are not subjected to repetitive presentations. Instead, the meetings are structured around a series of questions that are designed to stimulate indepth discussions.