The potential for new power projects in Southern Africa was "very rich", but the coordination between the Southern African Development Community (SADC) left a lot to be desired, South African Energy Minister Dipuo Peters said on Wednesday.

Speaking at a SADC Power Sector Investor Roundtable, in Zambia, she noted that the unprecedented economic growth in the region had led to challenges regarding electricity supply, highlighting that joint efforts between SADC member States were needed to ensure that the demand and supply of electricity were balanced out.

Power was the nexus of economic development, said Peters, adding that the development of the Southern African power sector was a prerequisite for growth, as this would draw potential international investors in all sectors to Africa.

She highlighted that the region had to ensure that its regional regulatory association be continuously strengthened, which would be important to bring investment to the region.

However, project developers and financiers had to "come to the fore" and foster mutually beneficial relationships with Southern African countries, Peters said. She added that these financiers and investors, however, had to ensure the transfer of skills and capacity building accompanied their investments.

Further, Peters highlighted that the region had to ensure the financial viability of the national utilities, so that it could be an attractive investment destination for new power projects.

Meanwhile, Zambian Energy and Water Development Minister Kenneth Konga explained that Southern Africa was hoping to solicit interest from potential investors and financiers in the region's power sector, by holding the roundtable.

"It is the desire of all SADC member states that by end of this forum, we will be able to obtain strong interest and firm commitments from financiers on some of the projects that will be presented," Konga stated.

He highlighted that the region had to ensure that there was sufficient least-cost energy services available, not only for the productive purposes of a country, but also to ensure that it could contribute to the attainment of the millennium development goals.

Konga agreed that the region had many viable projects that were yet to be developed, saying it was important to strategise and firm up commitments for developing these projects in order for the electricity supply and demand imbalance to be mitigated.

Further, he highlighted that one of the biggest barriers to the development of new projects was the fact that the low electricity tariffs had prevailed in SADC countries for many years.

However, the entire region had now started the process of moving towards more cost-reflective tariffs, which meant that new projects would be viable and would ensure that investors received fair returns on their investments, he noted.