Private equity funds are responding to a new wave of energy and other infrastructure projects in Africa.
A significant uptick in activity in infrastructure investment has become evident across Africa in the past two years. Opportunities have emerged in the face of growing urbanisation and a demand for power, water, housing and telecommunications.
The first is electricity self-generation, where the regulatory environment is opening up. For example, South Africa recently amended its Electricity Regulation Act to allow private offtakers to build power generation capacity or purchase up to 100MW without a generation licence from the National Energy Regulator of South Africa. The number of companies procuring private power generation capacity, either onsite or wheeled from another site, has grown rapidly, with a corresponding need for capital and finance. We have seen several rounds of follow-on investments, capital raising and M&A activity as private equity investors support this growing industry and build platforms that can roll out solutions across the continent.
Download SAVCA 2021 Private Equity Industry Survey