Nations in sub-Saharan Africa need to boost efforts to create more conducive climates for investment from independent power producers (IPPs) if they are to remedy their severe shortfall in power generating capacity.
According to the Standard Bank Group’s David Humphrey, global head of power and infrastructure at the bank, “Africa’s deficit in power generating capacity is well documented. What is not always realised is that unless this is addressed timeously, other crucial investment cannot take place.”
He believes that to facilitate greater investment from the private sector, African governments need an integrated power policy to create an investment-friendly environment and need to implement a bankable IPP programme. Humphrey says governments also need to invest in strong regulators and develop a reliable regional distribution network.