An Analysis of Independent Power Projects in Africa: Understanding Development and Investment Outcomes

Abstract

This study analyses the outcomes of African independent power projects (IPPs). Nearly 40 such projects have taken root to date, concentrated mainly in 8 countries. More balanced outcomes are perceived in North Africa than across sub‐Saharan Africa (SSA), for reasons linked to more attractive investment environments, more robust policy frameworks, fewer planning mishaps, abundant low‐cost fuel and secure fuel contracts as well as credit enhancements such as sovereign guarantees. With few exceptions, these elements were absent in SSA, where the role of development finance institutions and the strategic management of projects seem more important.