Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers
This paper develops a classification of investor risks and surveys 51 private investors and financiers in the power sector in Sub-Saharan Africa. The paper aims for a better understanding of what can be done to attract private solutions to fill the...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/463381593008837784/Attracting-Private-Solutions-and-Participation-in-the-Power-Sector-in-Sub-Saharan-Africa-Findings-from-a-Survey-of-Investors-and-Financiers http://hdl.handle.net/10986/33994 |
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okr-10986-339942022-09-20T00:11:59Z Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers Probst, Benedict Holcroft, Richard Huenteler, Joern Balabanyan, Ani Tipping, Andrew Robinson, Peter PRIVATE INVESTMENT INVESTMENT RISK ELECTRICITY FINANCIAL VIABILITY EMERGING MARKET ECONOMIES POWER SECTOR PUBLIC-PRIVATE PARTNERSHIPS OFF-GRID ELECTRIFICATION MINI-GRIDS POWER SECTOR REFORM SUSTAINABLE ENERGY This paper develops a classification of investor risks and surveys 51 private investors and financiers in the power sector in Sub-Saharan Africa. The paper aims for a better understanding of what can be done to attract private solutions to fill the investment gap. It finds that the average investor assigns more weight to power sector policy and regulatory framework risks than to the wider sector and country context risks. And, despite many challenges, investors perceive three segments as ready for private solutions in Sub-Saharan Africa: power generation, off-grid electrification, and mini-grids. Investors see lower readiness in distribution, transmission, and retail. The paper finds that the average investor is forward-looking, as neither the track record of the power sector nor the firm’s personal track record is as important as the growth potential in the market. The paper uses the findings to reality-check data-based measures of regulatory readiness, namely the Regulatory Indicators for Sustainable Energy and Power Sector Reform Index and analyzes which elements correlate best with investor sentiment to optimize and streamline these indexes accordingly. The results provide important lessons for governments and development partners to devise appropriate de-risking instruments tailored to the risks that matter most to investors. 2020-06-25T15:58:06Z 2020-06-25T15:58:06Z 2020-06 Working Paper http://documents.worldbank.org/curated/en/463381593008837784/Attracting-Private-Solutions-and-Participation-in-the-Power-Sector-in-Sub-Saharan-Africa-Findings-from-a-Survey-of-Investors-and-Financiers http://hdl.handle.net/10986/33994 English Policy Research Working Paper;No. 9299 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PRIVATE INVESTMENT INVESTMENT RISK ELECTRICITY FINANCIAL VIABILITY EMERGING MARKET ECONOMIES POWER SECTOR PUBLIC-PRIVATE PARTNERSHIPS OFF-GRID ELECTRIFICATION MINI-GRIDS POWER SECTOR REFORM SUSTAINABLE ENERGY |
| spellingShingle |
PRIVATE INVESTMENT INVESTMENT RISK ELECTRICITY FINANCIAL VIABILITY EMERGING MARKET ECONOMIES POWER SECTOR PUBLIC-PRIVATE PARTNERSHIPS OFF-GRID ELECTRIFICATION MINI-GRIDS POWER SECTOR REFORM SUSTAINABLE ENERGY Probst, Benedict Holcroft, Richard Huenteler, Joern Balabanyan, Ani Tipping, Andrew Robinson, Peter Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| geographic_facet |
Africa Sub-Saharan Africa |
| relation |
Policy Research Working Paper;No. 9299 |
| description |
This paper develops a classification of
investor risks and surveys 51 private investors and
financiers in the power sector in Sub-Saharan Africa. The
paper aims for a better understanding of what can be done to
attract private solutions to fill the investment gap. It
finds that the average investor assigns more weight to power
sector policy and regulatory framework risks than to the
wider sector and country context risks. And, despite many
challenges, investors perceive three segments as ready for
private solutions in Sub-Saharan Africa: power generation,
off-grid electrification, and mini-grids. Investors see
lower readiness in distribution, transmission, and retail.
The paper finds that the average investor is
forward-looking, as neither the track record of the power
sector nor the firm’s personal track record is as important
as the growth potential in the market. The paper uses the
findings to reality-check data-based measures of regulatory
readiness, namely the Regulatory Indicators for Sustainable
Energy and Power Sector Reform Index and analyzes which
elements correlate best with investor sentiment to optimize
and streamline these indexes accordingly. The results
provide important lessons for governments and development
partners to devise appropriate de-risking instruments
tailored to the risks that matter most to investors. |
| format |
Working Paper |
| author |
Probst, Benedict Holcroft, Richard Huenteler, Joern Balabanyan, Ani Tipping, Andrew Robinson, Peter |
| author_facet |
Probst, Benedict Holcroft, Richard Huenteler, Joern Balabanyan, Ani Tipping, Andrew Robinson, Peter |
| author_sort |
Probst, Benedict |
| title |
Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| title_short |
Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| title_full |
Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| title_fullStr |
Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| title_full_unstemmed |
Attracting Private Solutions and Participation in the Power Sector in Sub-Saharan Africa : Findings from a Survey of Investors and Financiers |
| title_sort |
attracting private solutions and participation in the power sector in sub-saharan africa : findings from a survey of investors and financiers |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/463381593008837784/Attracting-Private-Solutions-and-Participation-in-the-Power-Sector-in-Sub-Saharan-Africa-Findings-from-a-Survey-of-Investors-and-Financiers http://hdl.handle.net/10986/33994 |
| _version_ |
1764479957994569728 |