Belmond Mount Nelson Hotel
Growing Economies: Project Finance Forum
2-3 February 2017, Belmond Mount Nelson, Cape Town
Project Financing Options for Energy and Energy Related Infrastructure Projects in Southern, East and North Africa
"Extremely well organised with senior level participation from a cross sectors of industry. Networking opportunity was also very fruitful." Emirates Islamic Bank
Some of the topics discussed include:
- The Economic and Business Outlook for Investments in to Africa
- Current Project Pipelines and Investment Opportunities for Investors
- Successful Blending of Public and Private Financing
- How are ‘Non Traditional’ Forms of Investments Shaping Project Financing
- Effective Risk Mitigation for the Current Climate
Government representatives, heads of utilities and project developers from South Africa, Kenya, Uganda, Malawi, Ethiopia, Mozambique, Tanzania, Egypt, Morocco
Debt management agencies, sovereign wealth funds, pension funds, banks and equity funds from Europe, USA, Asia and the Middle East
Ref. Africa Progress Panel
Industry related reports and news
To find out about speaking opportunities at the Growing Economies: Project Finance Forum 2017, please email Shididka Mohamed on email@example.com or call +44 207 384 7911
Managing Director and Head of Emerging Markets, Corporate Banking EMEA
Christopher Marks has worked in the financial markets and financial sector advisory, across the public and private sector, for more than 20 years. He is Head of Emerging Markets, Corporate Banking EMEA, MUFG. Prior to his current role, Christopher served as Senior Advisor at the African Development Bank in Abidjan. He was previously Global Head of Debt Capital Markets at BNP Paribas in London. Ph.D. Princeton University.
Energy Advisor to the Minister of Energy
Head of IPP Projects, IPP Office, Government of South Africa
Karén Breytenbach was previously with the National Treasury, Public Private Partnership Unit and is currently in the IPP Office, a partnership between the Department of Energy, National Treasury and the Development Bank of Southern Africa. Karén has extensive experience in the procurement of large scale infrastructure projects. As Head of the IPP Office, Karén has been instrumental in the procurement of the internationally recognised Renewable Energy IPP Procurement Programme and is also heading the team procuring the new coal baseload and co-generation IPP Programmes. The IPP office is currently also procuring a gas to power IPP programme, which will include, inter alia, natural gas, syngas and LNG.
Principal Energy Officer, IPP Office
Department of Energy, South Africa
Corporate Specialist Treasury
Eskom, South Africa
Jonathan joined Fieldstone in 2006, and has 25 years of investment banking experience, focussed mainly on emerging markets and the energy, infrastructure and commodities sectors
Prior to joining Fieldstone he was Managing Director and head of Global Markets for Deutsche Bank South Africa, in which role he was also CEO of Deutsche Bank AG Johannesburg branch and responsible for business development across the rest of sub-Saharan Africa. Before this Jonathan spent 17 years with Barclays, based successively in London, Hong Kong, Singapore, New York and Johannesburg. During his nine years in Asia, he completed many pioneering project, acquisition, export and capital market financings across the region, followed by three years as Director, Investment Banking for the US Power and Utilities sector. From 2001 to 2004 he founded and headed Barclays’ pan-African Merchant Banking business, which completed transactions in 12 countries across the continent and was named “Debt House of the Year” by Euromoney. During this time Jonathan represented Barclays in the establishment of the Emerging Africa Infrastructure Fund.
Jonathan was a non Executive Director of the Bond Exchange of South Africa from 2003-9, and oversaw BESA’s merger with the JSE. He maintains a keen interest in local currency debt market development across Africa, having led significant issues in Botswana, Kenya, Namibia, South Africa, Tanzania and Zambia.
He holds a BA (Hons) from Oxford University.
Director, Power Generation Projects and Programs,
Head: SAPP- Project Advisory Unit, Southern Africa Power Pool (SAPP)
Omar Vajeth is currently the Head of the Project Advisory Unit and Senior Transaction Advisor at the Southern African Power Pool, a new unit created with the sole purpose of advancing regional projects in SADC. Previously he was Head of Power, Utilities and Infrastructure at Barclays Africa/Absa where he lead the teams expansion into Africa and the approach to the South African Power market. During this time, he concluded transactions across Africa in technologies such as renewable energy, coal, hydro, gas, HFO in addition to various advisory roles.
After Barclays Africa Omar has spent time working with international utilities and South African investors on coal baseload program. He has also advised firms on Black Economic Empowerment ("BEE") Private Equity Transactions in South Africa in the Power Sector. In this capacity is also created Gold Key Energy as a BEE investment vehicle for South African Projects. Prior to this he worked at Eskom where he was the capital investment manager for the Transmission group. He has also worked at the National Electricity Regulator and at Accenture. Omar holds MBA, law and B.Sc. Elec Eng degrees.
President Obama's Coordinator for Power Africa and Trade Africa
President, Banco Big & Former Minister of Energy, Mozambique
LAPSSET Corridor Development Authority
Founder & Chief Executive Officer, Africa GreenCo
Ana is a Founder & CEO of Africa GreenCo (Africa Green Regional Energy: Efﬁcient, New and Creditworthy Offtaker). Africa Greenco calls for the set-up of a public-private partnership in the form of an independent, regional, renewable energy offtaker. Africa GreenCo would streamline development, mitigate offtake and credit risk and catalyse private sector ﬁnance for renewable energy development. Africa GreenCo aims to increase private sector investment in energy generation in sub-Saharan Africa by mitigating the credit risks associated with the current lack of creditworthy offtakers. Current weak financial position of utilities and limited choice of an alternate buyer in case of utility default deters private capital. An intermediary aggregator between buyers and sellers can help attract sustainable investments in the power sector on the strength of a multi-buyer model. Its role as a financially sustainable intermediary offtaker and power trading company can also stimulate regional electricity trading and facilitate more efficient use of available and new resources by optimising them on a regional basis.
Africa GreenCo as a concept was included in the recommendations section of the SE4All’s Finance Committee Report and is currently funded by The Rockefeller Foundation.
Head of Transactions
African Infrastructure Investment Managers (AIIM)
In 2016, Lisa Pinsley joined the Actis Energy team as a Director based in Cape Town. Previously she worked for American Capital Energy & Infrastructure (ACEI), where she was a Director for Africa Investments; Globeleq as a Business Development Consultant and AES Africa Power Company as Vice President. Lisa holds a Master of Business Administration with honours from The University of Chicago Graduate School of Business, Master of Arts in Literature with distinction from The University of Sussex and a Bachelor of Arts in Applied Mathematics and Computer Science, cum laude from Harvard University.
Chief Investment Officer
Marubini is a former Investment Banker specialising in deal origination, mergers and acquisitions; restructuring, private equity; corporatisation; project finance and regulatory compliance. He has over 15 years corporate commercial experience, having been involved in providing advice to a number of public and private companies, parastatals and government departments. Marubini has extensive contacts and deal-making experience in the energy sector in South Africa and the rest of Africa. His experience in the energy sector ranges from solar photovoltaic, concentrated solar power, wind, coal and gas. Marubini is involved in various projects each in different stages of development.
Marubini was admitted as in attorney in 2002. He served his articles at Werksmans, gaining experience in insolvency litigation and commercial law. He was an Associate Director at Sonnenberg Hoffmann Galombik, and a Director at AloeCap Corporate Advisors where he was an advisor on corporate finance and due diligence, as well as assessing the viability of investment opportunities. At Nedbank Capital during 2008, Marubini served as a Senior Principal in the Investment Banking Division.
Marubini left Nedbank Capital to start Medupi Capital Proprietary Limited (Medupi Capital) which is a shareholder in various energy companies and through a collaboration model is focused on Principal Investments and Advisory in the Renewable Energy Sector. The focus of Medupi Capital is on development of industries involved in the energy sector, participation in engineering, procurement and construction (EPC) and operations and maintenance (O&M), as well as investment in developing farms.
Manager, Regional Representative Office Southern Africa
Ewout joined FMO in 2002, where he started as investment officer with a focus on financing infrastructure projects (transport, energy & utilities) in Africa and Asia. In 2005, Ewout moved on to FMO’s Europe Central Asia team where he became responsible for FMO’s portfolio in Azerbaijan and Ukraine. Besides originating and completing several transactions in the automotive and agri-sector, Ewout was responsible for a number of equity and debt transactions with financial institutions. At the end of 2008, Ewout joined FMO’s Private Equity department where his focus was on growing FMO’s portfolio of financial institutions in Africa and Asia. Since 2012, Ewout heads FMO’s regional representative office for Southern Africa in Johannesburg. Prior to joining FMO, Ewout worked for an international construction group on various financial assignments (investment and risk analysis, financial modeling, BOT transactions, etc.) in Eastern Europe, the Middle East (Gulf Area) and Asia. Ewout has a Master’s degree in Public Administration from the University of Twente in The Netherlands.
Principal Investment Officer
Marcel Bruhwiler is a Principal Investment Officer with IFC based in Johannesburg. He works on infrastructure investments in Sub-Saharan Africa.
Prior to joining IFC, Marcel was the Managing Director of the South African subsidiary of an international plant & equipment provider. Previously, he was a Vice President with ABB Energy Ventures and a founding partner of EIC Partners, an investment advisory and asset management boutique focused on the energy sector. At ABB, Marcel worked on development and financing of infrastructure projects in power, transport and water across Africa and the Middle East. He holds an MBA from the University of St. Gallen, Switzerland.
Global Head of its Islamic Finance
Dr Hussein Hassan has been Global Head of Islamic Finance at JPMorgan since January 2013. He previously served as Head of Structuring for MENA and Global head of Islamic Finance at Deutsche Bank AG and Global Head of Islamic structuring and Head of Structuring for the Middle East and North Africa (MENA) for UBS.
Hussein obtained his BCL and Doctorate from the University of Oxford where he also lectured on Common Law and served as King Abdullah Fellow in Islamic law at the Oxford Centre for Islamic studies.
Senior Underwriter – Extractive and Energy Sector
Multilateral Investment Guarantee Agency
Alan Narayadu is a Senior Underwriter in the Energy and Extractive Industries practice at the Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group. His focus areas of practice are energy and mining. He is responsible for both the origination and execution of projects for a senior portfolio of multinational clients focused in these sectors. He is a qualified Chartered Accountant and in this capacity is actively engaged in the structuring of various projects across MIGA in these sectors. Prior to joining MIGA in 2006 Alan spent time at KPMG; ING and Absa where he held roles in Client Relationships and Project Finance Credit. He is an active member of the Global Association of Risk Professionals focusing on energy related topics.
Head of Infrastructure, Energy and Telecoms
Phuti Mahanyele is the CEO of Shanduka Group. She joined Shanduka in 2004. Ms Mahanyele was previously Head of the Project Finance South Africa business unit at the Development Bank of Southern Africa. Prior to that she was Vice President at Fieldstone, an international firm specialising in the financing of infrastructure assets in New York.
She is involved in a number of activities with youth in her personal capacity. She has been awarded the Forbes Woman Africa Business Woman of the Year Award in 2014. The Africa Investors recognised Ms Mahanyele as a “Leading Africa Woman in Business of the Year” in 2012. In 2011 Rutgers University conferred on her the “Rutgers Vision of Excellence Award”. Wall Street Journal counted her among one of the “Top 50 women in the world to watch in 2008”. Ms Mahanyele was also selected as a Global Young Leader in 2007 by the World Economic Forum.
She holds a BA Economics from Rutgers University, USA, and an MBA from De Montfort University in Leicester, UK.
Senior Investment Officer, Project Finance Outside Europe
Svetla Stoeva is responsible for Project Finance transactions on the African continent at the European Investment Bank (EIB). EIB has been involved in the financing of several landmark PPP energy projects in Sub Saharan Africa, including the 300 MW Lake Turkana Wind Farm Project in Kenya; Khi Solar CSP Project in the Republic of South Africa (50MW); Cabéolica wind farm in Cape Verde (30 MW); Bujagali Hydropower Project in Uganda (250 MW), and the privatised energy utility AES Sonel and Kribi Gas Fired Power Plant in Cameroon (216 MW). In her 14 years at EIB, Ms Stoeva has also been responsible for EIB financing activities in various EIB Partner countries in Southern Africa and in the Near East. Between 2007 and 2010 Ms Stoeva served as Deputy Head of the EIB’s regional representation for Southern Africa located in Pretoria. Prior to joining EIB, Ms Stoeva was a corporate finance banker with JP Morgan Securities.
US Co-Chair, Projects and Infrastructure, US Chair, Agency Finance
Greg Smith focuses on international financing transactions, particularly within emerging markets and developing nations. He represents lenders, host country governments, project sponsors and private equity funds in connection with the development and financing of projects in sectors such as energy, financial services, housing, manufacturing, microfinance, mining, petrochemicals, telecommunications and transportation.
Over the course of his career, Greg has advised clients on transactions across Africa, Central and South Asia, Latin America and the Middle East. He is especially well known as one of the leading lawyers for representing development finance institutions, export credit agencies and multilateral agencies in complex, cross-border project financings.
Chambers & Partners have repeatedly recognized Greg in their well-respected legal directory, Chambers Global, in the area of USA Projects, having noted that "[s]ources describe him as 'very practical, very smart and very hard working.'"
Vice President, Finance
Jim Polan is the Vice-President of the Small and Medium Enterprise Finance Department at the Overseas Private Investment Corporation (OPIC). The SME Finance Department administers OPIC SME direct lending programs sponsored by US companies and financial institutions.
From 2005 Jim introduced, designed and implemented exceptionally innovative, developmental and award winning products including those involving MSME, renewable/clean tech energy and low income housing finance resulting in a multi-billion dollar increase in assets and significant economic and social developmental benefits.
In 2003 Jim led the effort to create OPIC’s Small Business Center (SBC). The center was established to provide greater access to capital for small U.S. companies investing in developing countries. The SBC lending programs reduces the time and transaction costs typically associated with project financings.
Prior to assuming the role of Vice-President Jim has led project teams to project finance transaction closings throughout the world, covering sectors including manufacturing, Oil and Gas, Private Power, Transportation, Communications, Mining, Tourism, Agro-Industry and franchising representing tens of Billion Dollars in foreign direct investment in over 150 developing countries.
Prior to joining OPIC in 1995 Mr. Polan spent the previous 16 years working for development finance banking institutions in Botswana and has been a financial and economic consultant to financial institutions throughout Southern Africa and the Far East. While in Africa, Mr. Polan sat on over 45 Company Boards of Directors and chaired four in addition. He managed and closed over 100 project finance deals. Mr. Polan conceived of, arranged financing for and developed the first Private Hospital in Botswana, was its Board Chairman, and went on to be its Chief Executive Officer. He was an active member of several SADC economic fora and delivered papers on several subjects concerning the private sector and development in Southern Africa.
Partner and Power Sector Lead
Head of Business Development, Global Generation, EMEA
Marco Consumi is Head of Business Development Africa, Middle East and Asia for the Thermal Global Generation of Enel. He has been covering this role since 2014. Previously he held several positions with increasing responsibilities in Business Development both in conventional and renewables within the Enel Group. Prior to joining Enel, Marco had worked for General Electric covering in his last role the African market in powergen and oil&gas sectors as Region Manager. Previously he served as research engineer at the Los Alamos National Laboratory of the Department of Energy in New Mexico. Marco holds a Master degree in Aeronautical Engineering from University of Pisa and a post-graduate diploma in Mechanical Engineering from California Institute of Technology in Pasadena.
Chief Executive Officer
AXA Africa Speciality Risks
Mikir is the CEO of AXA Africa Specialty Risks, a Lloyd’s commercial and specialty risks insurer and reinsurer with offices in London and across Africa. Prior to joining AXA, Mikir worked as Head of Insurance for UK and Africa at Barclays Investment Bank. He has a Bachelor of Science Degree in Actuarial Science from City University and sits on a Member Interest Group committee at the Institute of Actuaries. He is Kenyan and has extensive financial services experience across Africa.
Director, U.A.-African Clean Energy Development and Finance Center
Overseas Private Investment Corporation
Peter Ballinger is OPIC’s Managing Director for Business Development and their Johannesburg-based Africa regional representative focused on new projects with a concentration on the clean energy sector.
Head of Project Finance
Inspired Evolution Investment Management
James Eedes is head of the project finance transaction team at Inspired Evolution Investment Management, manager of the Evolution Two Fund. Inspired Evolution is a specialised investment management business, investing in clean energy and resource efficiency investments across sub-Saharan Africa.
Chief Executive Officer
South African Oil & Gas Alliance (SAOGA)
Head of Business Development: Energy Financing for South Africa
Head, Power and Infrastructure South Africa
Standard Bank CIB
Ntlai is SA Head of Power and Infrastructure in the corporate and investment banking division. He completed a Bachelor's course in Electrical Engineering, a post-graduate course in Industrial Engineering – GDE (Industrial) Engineering and a Deloitte Executive Development Programme at the Gordon Institute of Business Science (GIBS), Johannesburg. He has been with Standard Bank for 8 years, during which time he led the Infrastructure Advisory business and advised on Renewables, Baseload Coal, Bagass and Hydro powered deals. In Coverage, he leads teams dealing with the Utilities in SA and the rest of SADC.
African Development Bank
Investec Asset Management
The Growing Economies Project: Finance Forum took place at the Belmond Mount Nelson Hotel in Cape Town
- The Forum will bring together carefully selected project developers with investors from around the world in a deal making environment
- Workshops will present some of the biggest financial brains in the industry to provide tangible solutions to financing models for existing projects
- The forum will allow the private sector an insight directly from Governments from Southern, East and North Africa on what their project pipelines look like
- The forum will announce latest investment trends giving a clear indication of where the best investment opportunities are
- Open panel sessions will allow for lively audience participation in discussions, to move forward the development of projects and forge partnerships
- The Forum will build on the success of the highly respected Powering Africa: Financing Options Meeting which has been running for 9 years
For more information about the full programme or how to attend the Growing Economies: Project Finance Forum 2017, please contact us directly.
Who will contribute and why?
DLA Piper is one of the most active law firms on the continent of Africa, with a multi-disciplinary team of lawyers working on energy and infrastructure development projects and related financings and mergers and acquisitions. We deliver legal services to a broad range of clients, including project sponsors, governments, parastatals, and banking and financial institutions in the power, oil and gas, renewables, telecommunications, infrastructure and mining sectors. We combine the skills and talents of our lawyers on the ground in our Casablanca and Johannesburg offices with experienced practitioners in New York, London, Paris and other commercial centers to provide a coordinated and experienced approach to achieving our clients’ business objectives in Africa. Our firm has established DLA Piper Africa, an alliance of leading law firms in Algeria, Botswana, Burundi, Egypt, Ethiopia, Ghana, Kenya, Mauritius, Mozambique, Namibia, Rwanda, Tanzania, Uganda and Zambia to further our on the ground coverage.
To discuss a tailor-made package for 2017 please contact:
+44 (0)20 7384 8071
OPIC supports U.S. private sector investment in emerging markets by offering capital and risk mitigation tools
• Direct loans and guarantees up to $250 million with maturities as long as 20 years on projects that meet minimum U.S. ownership requirement
• Allocates political risk insurance; specialty coverage available for investments in the renewable resources sector and provides support for private equity investment funds
• Supports project development funding to clean energy ventures through the U.S.-Africa Clean Energy Finance Initiative (U.S.-ACEF), a $20 million initiative, co-sponsored with the U.S. State Department and Trade and Development Agency
The Emerging Market Investor's Association (EMIA) is the world’s first and only not-for-profit Emerging Market organization, dedicated to advancing the industry as a whole and representing the combined interests of investors and investment professionals across asset classes. www.emia.org
MESIA is the largest solar trade association in the Middle East and North Africa region . Established in 2009, the association represents over 120 international and local organizations including investors, installers, manufacturers, law firms, consultancies, policymakers and banks. MESIA is headquartered in Dubai, UAE and carries out solar-related activities and programs across the MENA region. Its regional coverage stretches from Egypt to Saudi Arabia, with over 7,600 subscribers. Over the past 5 years, MESIA has organized over 50 industry events focused on strengthening the footprint of solar energy in our region. Along the way, MESIA has won several prestigious awards and been recognized by leading government authorities across the MENA region. MESIA also publishes industry-leading reports which have been featured in the New York Times, Wall Street Journal and the FT. Among its most coveted events are the annual Middle East Solar Awards and the Middle East Solar Pioneers program. To learn more about MESIA visit www.mesia.com.
EMPEA is the global industry association for private capital in emerging markets. We are an independent non-profit organization with over 300 member firms, comprising institutional investors, fund managers and industry advisors, who together manage more than US$1 trillion of assetsand have offices in more than 100 countries across the globe. Our members share EMPEA’s belief that private capital is a highly suited investment strategy in emerging markets, delivering attractive long-term investment returns and promoting the sustainable growth of companies and economies. We support our members through global authoritative intelligence, conferences, networking, education and advocacy.
Africa Outlook is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent. This monthly magazine is essential reading for business executives wanting to keep up with the latest in global news affecting African businesses, as well as exclusive, engaging and sharable features generated from their peers. Africa Outlook remit embraces the coverage of key business sectors and sub-sectors including: mining, oil and gas, manufacturing, construction, retail, logistics, finance, healthcare, technology and other professional service areas.
The Business Year (TBY) is a leading research firm and publisher of annual economic resources on national economies. Present in over 25 countries, TBY provides first-hand access to the people and ideas shaping business and policy throughout the world. Each country-specific edition contains a comprehensive range of interviews and analysis, offering an inside look at doing business in the world’s most dynamic economies. TBY’s interviewees, readers, and partners comprise an international network of thought-leaders who are helping to define the future of the global economy.
- A unique membership organization with an O2O (online to offline) model:
- An online information platform and deal database
- An offline advisory service with private deals
- Experts in cross-border transactions
- Supported by PRC and international government agencies at various levels
- Information and advice
- A platform for enterprises, governments and individuals to promote their knowledge and capabilities
- A bridge for cross-border investments and business opportunities
- Access to expertise, events and deals
- Knowledge: our website contains practical, authoritative information for international transactions
- Matchmaking: we connect investors and business partners, source financing, and facilitate access to funds
- Consulting: we provide practical, experienced advice from pre-signing through closing and ongoing operations
InfraPPP World is the new and definitive social media tool that will allow our clients to get the latest and updated knowledge on infrastructure and PPP:
· The latest and most relevant news of the infra&PPP sector at a global scale: EMEA, Americas and Asia Pacific (APAC)
· Every new market report and research about infrastructure and PPP, from the most trusted sources
· Our recommendations for the best job opportunities
· The best database of PPP tenders and awarded project
For more information, visit infrapppworld.com/.
IPP Journal is an internet knowledge platform focused on the energy finance sector where subscribers can get valuable information, such as daily news and databases of projects, M&A transactions, institutional and PE investors, companies and job offers. We aggregate, elaborate and distribute specialized knowledge in the energy finance & investment sector. We differentiate from other editorial groups because we are also business consultants operating in the sector.
For more information visit www.ippjournal.com
If you would like to attend as a member of press or are interested in a media partnership in 2017, please contact:
+44 (0) 20 7384 7936
Rates for Growing Economies: Project Finance Forum 2017
|Standard rate after 16/12/16||Group booking
(applies to final rate)
Team of 4
If you are looking to register 5 people or more, please email GEPFF@energynet.co.uk to discuss the different package options.
For programme or speaker enquiries please contact:
To find out how to attend as a delegate or for media enquiries please contact:
For commercial partnership opportunities please contact:
View the interviews with the speakers for this year's Growing Economies: Project Finance Forum
Ana Hajduka, Founder and Chief Executive Officer, Africa GreenCo
1. What do you think needs to change urgently to move forward projects?
Current development efforts focus on the financial instruments required to compensate for lack of offtaker creditworthiness and the lack of a viable power market. These are the proverbial sticking plaster, and do not address the underlying structural and market weaknesses that make private sector investment in infrastructure so challenging. In order to access the necessary capital, new structures need to be developed to create lasting, scalable changes in how power markets operate. Such new structures should be focused on a programmatic approach to energy development and planning, rather than the prevailing project-by-project approach. We are proposing one such structural change via Africa GreenCo.
2. Beyond traditional private equity and institutional investors – how are non-traditional investors shaping project financing? Are they?
No they are not as of yet but they could do and should do but for that we really need to think outside the box. Over the past few years, the equity returns achievable by developers of energy and infrastructure projects in developed markets have fallen dramatically, particularly in the renewable energy sector where state subsidies have been progressively withdrawn. There is now a deep pool of international capital looking for investment opportunities with appropriate risk-adjusted returns but the majority of these potential investors still view a long-term investment in the African power sector as a highly risky venture. One aspect of this is the substantial “at risk” time and cost involved in project development, another is the difficulty faced in “banking” a long term power purchaser agreement with an uncreditworthy counterparty. The current focus on deploying monies for individual projects whether by direct finance or by guarantees is not sufficient as such a way of funding and managing risks is project specific and in addition moves the obligations away from uncreditworthy entities (i.e. utilities) to already heavily indebted governments (by virtue of sovereign guarantees). This is an unsustainable model going forward as it transfers utility risk to governments without solving the underlying structural utility and market weaknesses. This problem is exacerbated by increased capital adequacy requirements reducing the availability of long term debt.
3. Which financing instruments are leading the trend and looking to be the most promising?
As per above we are not believers in financial instruments as real change makers :) The question for us is how best to address the underlying credit risks associated with developing new power generation in sub-Saharan Africa in order to unlock new sources of capital at lower cost, and reduce the fiscal burden on African Governments?
Due to that we propose the introduction of a principal in the market to address the core issue of creditworthiness of offtakers and the lack of a viable power market to sell electricity production. The envisioned entity is an ambitious attempt to attract the capital required to meet Africa’s energy needs and help liquefy and develop the power pools energy market in sub-Saharan Africa.
Current weak financial position of utilities and limited choice of an alternate buyer in case of utility default deters private capital. An intermediary aggregator between buyers and sellers can help attract sustainable investments in the power sector on the strength of a multi-buyer model. Its role as a financially sustainable intermediary offtaker and power trading company can also stimulate regional electricity trading and facilitate more efficient use of available and new resources by optimising them on a regional basis.
Most independent power projects in sub-Saharan Africa are currently structured on a bilateral (single buyer / single seller) basis. Interposing a single creditworthy counterparty between multiple buyers and sellers within regional power pools, should improve efficiency and reduce the risk profile of the projects. It is argued that such an intermediary would ‘crowd in’ private investment by making power generation finance what it should be: an accessible, low risk endeavour.
East & Southern - industry updates
Find the latest industry news, interviews and articles about the energy & infrastructure projects in East & Southern Africa. This content is gathered at our annual meetings, from our sponsors and partners and aggregated from credible sources.
Is your company active in East or Southern Africa? To receive the latest updates from these regions, please join the East & Southern mailing list
Latest industry news
Minister Thabane Zulu, Director-General, Department of Energy, Republic of South Africa, at the Africa Energy Forum discussing strategies to increase South Africa's base load
Watch the interview with Joshua Kibet Choge, Chairman of KenGen, Kenya, as he speaks with us at the Africa Energy Forum 2016
Watch the interview with Jason Harlan, Chief Executive Officer, Fieldstone Africa
Is your company active in East or Southern Africa? To receive the latest updates from these regions, please join the East & Southern mailing list
North & West - industry updates
Find the latest industry news, interviews and articles about the energy & infrastructure projects in North & West Africa. This content is gathered at our annual meetings, from our sponsors and partners and aggregated from credible sources.
Is your company active in North or West Africa? To receive the latest updates from these regions, please join the North & West mailing list
Africa Energy Yearbook articles
A Snapshot of Morocco's Power Sector - by Tarik Hamane, Director, Power Generation Projects & Programs, ONEE, Morocco
Latest industry news
Watch the interview with H.E Honourable Alfa Oumar Dissa, Minister of Energy, Mines and Quarries, Burkina Faso, as he talks with us at the Africa Energy Forum 2016
Watch the interview with H.E. Hon. Henry O. Macauley, Minister of Energy Sierra Leone, as he talks with us at the Africa Energy Forum 2016
Watch the interview with H.E. Honourable John Abdulai Jinapor, Acting Minister of Power, Ghana, as he talks with us at the Africa Energy Forum 2016