Page 502 - 2016 - Vol. 40

1. The need for global diversification as traditional markets
decline; African energy markets meet this need.

2. The certainty of increasing energy demand in Africa.
3. The accelerating African economic growth.
4. The desire to gain foothold and experience in future

profitable African energy markets.
5. The renewables’ sustainability in many African regions;

strong wind and solar resources act as a strong driver
for renewables deployment.
Furthermore, regional agencies and international
cooperation programmes have started recently to offer financial
and technical support for private renewable energy projects in
Africa. They consider renewables to be sustainable and clean
source for power generation. This regional and international
consolidation can represent another significant factor for
enticing private investors to this field in many African regions(33).
For example, the African Renewable Energy Fund (AREF)
has been established to offer capital support to private sector
renewable energy projects (small-to-medium-scale projects)
in SSA(34). Since its launch in March 2014, AREF has been
investing capital in grid-connected renewable energy projects;
small hydro, wind, geothermal, solar and biomass projects(35).
Also, there is Africa-EU Renewable Energy Cooperation
Programme (RECP); it acts as market information provider and
financial facilitator for African and European investors who
are interested in undertaking medium-scale renewable energy
projects in Africa(36).

- 14 -