Governance (ESG) arenas. ESG has admittedly become a bit
of a buzzword in our industry in recent times but it has been
fundamental to our thinking and practices for many years and
it is well established in AIIM. ESG is not a box ticking exercise.
We believe it is essential to have the support of the local
communities and contributing positively to the environment
is fundamental to what we do.
All in all, the perceived risk of operating in South Africa and
on the greater African Continent is undoubtedly higher
than the real risk after mitigation measures have been
implemented.
What role does the private sector play in covering the
continent's infrastructure needs and requirements?
The infrastructure needs on the continent are huge. The
upwardly-revised estimate from the African Development
Bank forecasts that Africa needs up to USD170-billion a year
spent on infrastructure for the next decade. The private
sector alone cannot satisfy this need. But we can play an
enabling role as long as we have stable and transparent
regulatory regimes in place to guarantee project certainty.
Some projects are so large that they will naturally fall into the
domain of governments and will need to be supported by a
combination of national and local funds. Other projects will
never be commercially viable but may well be required and
also fall into the government delivery domain.
Africa has made huge strides in infrastructure investment
with robust projects and a very clear sense of direction and
purpose. With careful project selection and management
private equity can meet the needs of investors and provide
vital new infrastructure that delivers benefits directly to local
communities.
AIIM, a member of Old Mutual Alternative Investments, has
been investing in the African infrastructure sector since
2000, with a track record extending across seven African
infrastructure funds. AIIM currently manages USD2.1 billion
in assets covering the power, telecommunications and
transport sectors with operations in 15 countries across East,
West and Southern Africa.
Africa Oil & Power (AOP) is a platform for energy investment
and policy in Africa. AOP is hosting a conference and exhibition
from October 9 – 11 at CTICC 1 in Cape Town, South Africa.
KENYA LAUNCHES AFRICA’S
LARGEST WIND FARM
Kenya has launched Africa’s largest wind farm project in a bid
to boost the country’s power generation capacity and reach
its goal of 100% renewable energy generation by 2030.
Set to contribute 310MW to the national grid, the USD680-
million privately-funded Lake Turkana Wind Power project will
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African Mining Publication
Other projects are more suited to the private sector. These
projects need to provide reliable returns over long terms
in return for private equity investors to be willing to take a
measured risk. For example, a new power facility might need
to be in production for 20 years or more to pay back our
investment and produce returns for investors.
Renewable energy like wind turbines will play an increasingly important role
in the future of African countries like Kenya.
increase the country’s power supply by about 13%, reducing
the country’s reliance on thermal generated electricity.
With an energy mix that consists of 85% renewable energy,
Kenya is considered one of the world’s leading countries
in the development and implementation of clean energy –
particularly in the geothermal sector.
Kenya’s installed capacity increased from 1768MW in March
2013 to 2712MW in 2019 through renewable energy projects
including the Garissa solar power and Ngong wind power
plants. Further, in the last eight months, the country has saved
its citizens over KES8-billion (USD77-million) as a result of a
decreased reliance on diesel-generated thermal power.
The African continent is increasingly tapping into its wind
power potential in efforts to close the significant power gap.
With world-class developments coming online in countries
including South Africa, Nigeria and Ghana, Africa is expected
to considerably improve power access through the further
integration of clean energy.
Hosted under the theme #MakeEnergyWork, the flagship
Africa Oil & Power Conference and Exhibition will explore this
and other topics showcasing the oil, gas and power sectors as
key economic drivers.
African Mining
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