According to a new survey, international investors say Africa’s renewable energy industry is the most promising on the continent.
The survey which was conducted by a French research agency Havas Horizons, indicates that investors believe in the ability of Africa to become a world reference for renewable energy.
It further states that projects in this particular sector, which was long considered risky, now represent a high potential in realizing higher returns on investment .
Solar energy was highlighted as the most promising energy solution by the year 2020 and Africa is now entering a global trend of development of renewable energy at the expense of fossil fuels.
The fall in global commodity prices has not decreased investor confidence in the continent, the research says. Adding that investors are willing to keep and even increase their investments in Africa, with Ethiopia, Nigeria, Morocco, Ghana and Senegal, showing immense potential.
However, investors cited issues surrounding legal procedures and governance as some of the main setbacks.
Havas Horizons polled 55 banking and financial institutions between January 14 and February 29.