Interest in renewable energy sources is driving an international investment boom in Africa, according toStanlib, the asset management arm of the Standard Bank of South Africa.

In a report to investors, Stanlib highlights a number of Africa-based energy projects that are attracting investment from around the globe. 

The continent’s climate means that solar power is drawing particular attention. Dylan Evans, global investment marketing director at Standard Bank, said:  “NASA has identified part of Niger as the sunniest place on earth. Solar power is therefore taken seriously. Senegal's president has ordered a study into the feasibility of the country becoming totally reliant on this form of energy.

“Well-informed investors from outside the continent are also interested in African ‘renewables’ and are prepared to commit substantial sums.”  

Other prominent projects that have sparked international interest include wind farms and hydro power plants.  A number of African countries have projects planned, with investment coming from a variety of sources including foreign governments and banks.

Brazil is to finance the $555 million construction of Ghana’s Jule River and Puralugu hydro power plants, while China’s Exim Bank is to finance the $600 million development of the Bui hydro project.

Egypt is to build a Red Sea wind farm, using a $388 million loan from a German commercial bank and the European Investment Bank. 

Meanwhile in Nigeria, China’s Shenzhen Energy Group is planning to build a power plant in a joint venture with Nigeria’s First Bank at an estimated cost of $2.4 billion.

“This is a strong pro-Africa signal at a time when risk aversion is the norm in numerous investment markets,” said Mr Evans.