Attracting and Retaining Private Investment in the Sector for Continued Growth

A common thread woven through many of the discussion streams during aef 2024 was the challenge of fostering increased engagement from private sector entities across numerous facets of Africa's energy landscape.

Attracting and retaining private investment is crucial for economic growth, job creation and improved energy access. When accessed, private capital can accelerate infrastructure development and technological innovation, reducing the burden on public resources.

However, significant challenges persist across the continent, with political instability, regulatory uncertainty, high perceived risks, inadequate infrastructure, skills shortages and currency volatility among the stumbling blocks to acquiring investment.

Overcoming these obstacles requires concerted efforts from governments, international organisations and private sector partners to create a stable, transparent and attractive investment environment. Succeed here, and it could transform Africa's energy landscape, driving sustainable development across the continent and unlocking its vast potential.

Discussing these many facets was a boardroom panel chaired by Synergy Consulting’s Praveen Umredkar, which included government entity representation from South Africa, Somalia and Uganda. Delegates from Microsoft, Actis and Nedbank CIB also participated in the discussion.

H.E. Honourable Abdullahi Dayib, Director General of the National Electricity Authority (NEA) in Somalia, began the session by giving an overview of the energy landscape in the country, which is about to reach a major milestone by announcing its first IPP in July as it seeks to welcome more private sector stakeholders into the market. His Excellency also outlined a new Electricity Act which is due to come into law, which will see the establishment of a national utility.

Somalia, like many nations, is working to create a supportive policy and regulatory environment to attract greater private investment into its energy sector across a range of grid-based and off-grid projects.

This prompted other panel members to discuss what an enabling environment for private investment looks like, as well as steps that need to be taken to create it.