Despite a significant oil price drop in recent months signaling renewed headwinds in the global economy, the SSA economy is forecast to grow at a combined rate of 5% over the next few years. To support this level of growth, large investments into infrastructure and sustainable power supply need to be made.

Low levels of infrastructure and power supply are a deterrent for many wanting to invest across various sectors in Africa. The development of large capital projects needed to support the growth of the African economy and attract the required investment relies on robust planning, reliable funding, resilient operating structures and skills development.

In light of the main challenges facing the SSA power industry, such as inadequate generation capacity, poor transmission infrastructure, unskilled or low numbers in the skilled workforce, poor maintenance of existing power stations, as well as poor metering and billing systems resulting in unreliable supply, countries will need to innovate to achieve financially viable growth in the sector.

These challenges, coupled with a changing landscape in terms of technologies and the costs thereof, are giving rise to a number of ‘disruptors’ in the sector, inspiring a shift away from traditional generation practices and mixes, modes of business, methods of operations and systems, funding channels and models, as well as the landscape of players and stakeholders, towards the application of new and innovative technologies and dynamics in Africa’s power infrastructure.

Report by Deloitte