Energy Financing Trends

Energy sector commitments in 2018 amounted to $43.8bn, 67% higher than the 2015-2017 average. This is the largest level of commitments ever recorded in the sector and the largest allocation of commitments (44% of total). The result of more than a doubling of commitments by China, which reached $18.3bn in 2018 from $9bn in 2017. The significant increase included some very large projects such as a hydropower project in Nigeria funded by a $5.8bn loan from China, and a $4.4bn loan to support a coal project in Egypt. Private sector commitments amounted to $6.2bn. Further, ICA members committed $4.4bn more in 2018 than in 2017, and African governments added $2.1bn to their energy commitments in 2018.

Funding from ICA members for energy operations amounted to $10.2bn, close to half of total commitments, establishing the energy sector as the sector receiving the largest share of ICA member financing in the 2014-2018 period, with the exception of 2017, when the transport sector had received the largest share of financing.  

Allocations to the energy sector in national budgets amounted to $$7.7bn in 2018, $2.1bn (38%) more than in 2017. The share of allocations to energy went from 16% in 2017 to 20% in 2018. Most of the increase (91%) is the result of a $1.9bn increase in the allocation West African countries made to their energy sector. North Africa more than doubled its allocation, going from $777m in 2017 to $1.6bn in 2018. These large increases were somewhat offset by an allocation reduction in South Africa ($513m).

Total energy sector financing by source, 2014-2018

Total Energy Financing by region 2018

Subscribe to our Newsletter

This week's must-sees

Interviews, article, discussions, news of the week

Each Friday, at 8PM (Paris GMT), the Infrastructure Consortium for Africa (ICA) selects for you the moments you should not miss

To subscribe:

Subscribe now

You are currently offline. Some pages or content may fail to load.