Africa is our home and we have all seen significant change over the past 20 years. We live and work here because we all believe in the future of this continent. Africa currently has a USD$2 trillion economy with about a third of its 54 countries garnering annual GDP growth rates of more than six percent. Of the top ten fastest growing economies in the world, six are here in Africa and are rich in natural resources. Resource extraction is driving the demand for energy and the infrastructure to export this wealth. At the same time, the continent’s population is projected to grow to 2 billion by 2050 and will soon have the largest global workforce.
Africa’s economic growth and urbanisation is consistently driving demand for energy; however there is an on-going supply gap. Why?
Our analysis concludes that this is in part due to an inability to mitigate project risks and poor access to early stage project development funding. However; a major contributing factor is also a lack of insight into the nuances of local markets and the experience needed to address real local social development issues. The outcome is a meagre stream of viable projects which are fought over once they have been de-risked at financial close.
Africa is littered with partially developed power projects which are technically and economically sound, yet have for various reasons lost traction and stalled. AEP believe that a key means to successfully developing these projects in Africa, requires local on-the-ground expertise to partner with internationally proven technical resources. It is on this basis that we have chosen our team members, our current projects and our strategic technical partners.