Kenya Is An Investment Magnet For Multinational Energy Companies
Yesterday we ran an article about how much it would take to fix all the power problems endemic to sub-Saharan Africa. According to McKinsey & Company, it would take $835 billion to fix all sub-Saharan Africa energy problem, with Nigeria alone needing $350 billion.
While the prospects sound daunting on paper, it is even more daunting to think about where such type of capital investment will come from. So it begs the question, will the African governments be able to meet such colossal investments? Well, if precedent is anything to go by, we should expect the private sector to rise to the occasion and meet this capital demand; particularly the foreign investors. But the Ethiopian government has set a better precedent by funding the construction of the Grand Inga without foreign investments.
Be that as it may, Kenya is fast charming multinational companies interested in investing in the energy sector. The country has viable investment opportunities in the renewable energy and oil and gas industry, which has got several big multinational investors lining up with their investment proposals.
Kenya is expected to start producing and exporting oil within the next two years. The recent discovery of oil in the country has got many multinational companies seeking to set up shop either upstream or downstream in the channel of mining, refinery, and distribution of the resultant oil products.
On Monday, April 27th, various oil and gas companies from around the globe were in Nairobi for a talk on how to approach the challenges and opportunities presented by the emerging energy opportunities in the country. Part of the discussion also extended to investments into the renewable energy sector.
The organizers of the event said the majority of the multinational companies in attendance expressed their interest in venturing into the Kenyan energy industry. Millions of dollars are thus expected to be invested in Kenya energy sector. Some of the multinational in attendance include Solar Inc. – A German solar energy giant. The participants also urged the Kenyan government to offer multinational companies more incentives to set up shop in the country.