Surging Renewable Energy in Africa


Growth in the near future is “led by solar and wind projects in Egypt, Algeria, Tunisia, Morocco and Ethiopia”. Indeed, as this infographic illustrates, North Africa is the current leader on the continent in terms of renewable energy capacity and is likely to stay in this position when factoring in the capacity currently under construction.

The largest increase when all under-construction projects are completed will be seen in Central Africa, where the capacity is set to more than double. West Africa, on the other hand, has very little in the way of new capacity around the corner, with just 100 MW under construction at the time of publication, compared to the 15,201 in Central Africa, for example.

Private equity investment will seek
diversification along four lines:

Sustainable, renewable energy is fundamental to Africa’s future. By 2050, the continent will be the home of 2 billion people, and two in five of the world’s children will be born there. Meeting their needs with sustainable sources of modern energy – for consumption and production – will be essential to social welfare and economic development.

Source: Data analytics by World Economic Forum

Renewable energy is key to the future of Africa, which is forecast to be home to 2 billion people by 2050.
Meeting their needs with sustainable sources of energy will be vital to the continent's socio-economic development.
Inclusive planning and consensus building will be vital for a successful clean energy transition for everyone.

Portfolio Construction

Asset selection is risk based and not limited to growth in revenues and earnings, asset types or selected markets.

Investment approaches will encompass both quantitative methods and approaches based on fundamental or qualitative analysis.

Investments will seek to profit from Africa’s development, GDP growth and energy resources growth. 

Portfolio construction and investment decision making inherently involve the incorporation of risk management.

Risk Management

A maximum of 5% of NAV will be invested into market traded assets of a single company to limit company specific risk and a maximum of 10% of NAV will be invested into assets of a private company that are not traded on an exchange.

A minimum of 20% will be invested into liquid assets that are traded daily on a regulated exchange to cope with the net withdrawal risk. The fund targets a liquidity of 30% of the fund’s assets.

To distribute the risk among all investors, the valuation of the private equity invested in the fund is the value of the net assets, the liquidity of the deal itself and the liquidity of the whole fund including expected net redemptions for the period.

Private equity positions will be valued by an independent third party. The Advisory Board and the Management team will meet regularly for the interest of all investors in the fund.