French investment to boost Kenyan energy markets
26 May 2011
French investment in carbon trading projects in Kenya will come as a boost to the nation's environmentally-friendly energy infrastructure.
Some Sh500 million (£3.6 million) is being allocated by French sovereign fund PROPARCO to help Kenya reduce its carbon emissions, Business Daily Africa reports.
The investments will benefit firms engaging in a wide range of environmentally-friendly projects, including electricity generation from biomass, solar, hydro, or wind sources.
Etienne Viard, PROPARCO's managing director, said: "This strategic decision reflects the intention to play the role of a catalyst for private investment in regions that have been overlooked by investors and have not had access to carbon finance in spite of a substantial potential for projects to reduce greenhouse gas emissions."
The French investment comes at a time when sovereign funds are increasing their exposure to the Kenyan market.
Last year, for example, four sovereign funds purchased big stakes in Kenyan companies and extended credit lines worth Sh25 billion, underlining increased investor confidence in the Kenyan economy.