David Humphrey, Global Sector-Head Power and Infrastructure at Standard Bank, says that a great deal of progress has been made over the last year with regards to energy development in Africa.
In an interview with Engerati at the Africa Energy Forum, he points that the power and infrastructure sector is showing a very strong revenue growth. “There will definitely be more growth in power development in Africa so we should be very optimistic about the future. There is a lot of interest in Africa’s projects-both small and large.”
He says that many countries are on track and many governments have put the right regulatory framework into place in order to attract investment to this sector. “Things are definitely happening on the ground,” he says.
Investors are keen to invest in the growing number of smaller power projects as they have recognized the significant opportunities involved. Smaller projects are growing since large projects take time to develop and commission. “Small projects, which are quicker to commission, are critical to fill that energy gap. They make an immediate difference,” explains Humphrey.
“There is a wall of money waiting to come into Africa, specifically from the US, as they have seen the potential. This is thanks largely to US president Obama’s Power Africa energy initiative. We expect to be signing a lot more deals over the next 3 years as a result.”