Energy Investment Picture & Data
Energy Investment Picture – Latest Figures from 2012
ICA members committed $7.8bn to energy projects in 2012. This represents more than a 100% rise over 2011 – but is still considerably less than the ICA member contributions in 2010, which were almost $13bn.
North African projects received 31% of all energy commitments in 2012, at $2.4bn – a substantial increase in 2011’s $500m commitment.
Sub-Saharan Africa received $5.4bn, of which $1.6bn went to The Republic of South Africa and $486m to Central Africa.
Eastern Africa projects received nearly $1.3bn in financial commitments, while Western African projects received nearly $1bn. in 2012.
Central African energy projects have seen a steady increase in funding over the last two years. This region received almost 10% of the share of African commitments – in contrast to 2009 and 2010, when that share was only 3%. This trend could continue because ICA members have expressed interest in backing the Inga, Ruzzi and other projects in the region. Also, the huge hydropower potential of the DRC, Ethiopia and other ‘water towers’ should support the much-increased cross-border trade in electricity over the next decade.
More funding is needed and current investment levels must be quadrupled if Africas’ energy requirements are to be met – and Africa has enormous, un-tapped resources in wind, solar, geothermal and hydropower.
The ICA funded the African Infrastructure Country Diagnostic (AICD), a comprehensive World Bank study to assess the magnitude of Africa’s infrastructure needs. The 2009 AICD Flagship report Africa's Infrastructure: A Time for Transformation revealed many important energy challenges for Africa: including climate change, renewable energy and the global financial crisis and the implications on access to energy and food. This Flagship study and all the knowledge tools associated with it provided the platform for the AIKP, (African Infrastructure Knowledge Programme) an African Development Bank managed initiative that aims to build on the work of the AICD by collecting relevant statistics about infrastructure in Africa.
Source: ICA. For more detailed information and the latest figures on energy in Africa, consult the 2012 Annual Report, Infrastructure Financing Trends in Africa.
For more information about specific ICA Energy Platform activities, please visit ICA News/Energy.