Despite the global economic downturn, the sub-Saharan African electricity industry is still expected to grow, according to The Energy & Power Systems Group at Frost & Sullivan. This is due to strong fundamentals that include an improved investment climate, a high demand for electricity, robust economies, the pursuit of the reform of the power sector and feedstock availability.
"The sub-Saharan African electricity sector will be largely unexposed to shifts in global economic conditions," said Frost & Sullivan Industry Analyst Jeannot Boussougouth. "In times of depressed economic conditions, investors will need to direct their investments to sectors with strong fundamentals, and the region's electricity sector certainly offers robust growth prospects."
"As vertical sectors across the world start to feel the effects of the global recession, investors and project developers willing to invest in the sub-Saharan African electricity industry will need to be aware of the challenges that they could face and the subsequent mitigating strategies they could employ," said Boussougouth. "In addition, project developers will need to be aware of the planned projects that Frost & Sullivan has identified across the sub-Saharan African region. This should help current and future participants cope with a dramatically altered economic landscape."