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Resource Mobilization Strategy for
Energy in the African Continent
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Industry Background
• Generation
– Hydro Power Generation
– Thermal Power Generation
– Wind Power Generation
– …etc.
• Transmission
• Distribution
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Types of electricity
sector organization
• Vertically Integrated Utility
• Wholesale electricity market
• Retail electricity market
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Nature of
ElectricityInvestment
• Long term investment
• Asset specific
• Capital intensive
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Pre-Requisites for
Resource
Mobilization
• Government Support
• Strong regulatory framework• Credit worthiness of the off-taker
• Process transparency
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African Priorities
• The African priorities with respect to energyremain the same as spelled out in the
founding document of NEPAD in 2001. Still,
access to reliable and affordable energysupply is an issue.
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Challenges
• Conflicting Regional and National Interests
•
Financial Resources• Internal Market Regulations
• Cross Border Market Regulations
• Capacity Building
• Accurate and Timely Information
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Strategy to Advance
the African
Priorities• The strategy shall meet the following criteria:
I. Prudent utilization of public and donor
resources to unlock private sector potentialII. Projects which are bankable are categorized as
PPP candidates
III. Increase knowledge transfer to the Africancountries.
IV. Maximize positive impact on the employmentlevel
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Our Strategy On
Mega Projects
- Establish an investment conducive
environment in Energy Infrastructure. This
includes working towards the advancement ofproposed pan continental “directives” wrt
internal market regulations and cross border
ones- Boosting the investment environment in Africa
at large
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Our Strategy On
Mega Projects
Cont’d• Direct ODA and public funds should be
directed to unlocking projects
• Work with development partners on
innovative financing schemes drawn from
lessons learnt from successful interventions
• Set prioritization criteria for projects offered
for PPP to establish the credit history of
energy projects in the continent
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Our Strategy On
Mega Projects
Cont’d
• Boost and strengthen the structure of regional
organizations as legal non-state entities with aclear definition of responsibilities and
liabilities
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SMB as a parallel
Path for Mega
Projects• Building upon the continent inventory of
entrepreneurship, seeking business opportunities
• SMB especially in renewables offers advantages
of modularity and economic competitiveness
• It is a parallel fast track to electrify the continent
• A study of SMB in energy is sought
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Venues for
Cooperation withOECD countries1. Assist in key strategic projects that will enable private
sector development of generation facilities
2. Technical support to establish a pan-Africanlegislation for internal market regulation and crossborder trade similar to the European best practicetogether with the appropriate benchmarking
mechanism3. Capacity building and knowledge dissemination to
establish a Private sector friendly environment
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4. Support a study of the non-OECD intervention inAfrica and the core reasons behind its success and
propose solutions to be cloned to financiers fromother domains
5. Provide support and investment in the area ofdistribution and distributed generation equipmentmanufacturing on a regional basis to reduce the cost
of rural electrification6. Technical support for establishment of an
environment appealing to distributed generation(SMB) ventures
Venues for
Cooperation with
OECD countries
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In Conclusion
• Upstream ground work on the investment
environment lie ahead
• Prioritization is key
• Two parallel streams for implementation,
Mega Projects and SMBs approach
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