Bloomberg News

China, Japan Driving Africa Renewables Investment, Report Says

June 20, 2013

Chinese power companies and Japanese trading houses are emerging as major financiers of African renewable energy projects, which saw investment quadruple to $9.3 billion last year, Baker & McKenzie LLP said.

“Asian investors are increasingly targeting African renewable energy projects,” attracted by better returns and strong wind and solar resources on the continent, the Chicago-based law firm said in report today based on a global survey of 140 industry executives.

Recent deals include the 20-billion-yen ($205 million) Dorper wind farm in South Africa that sold a 60 percent stake to Sumitomo Corp. (8053) and was partially debt financed by Sumitomo Mitsui Banking Corp., it said. The Export-Import Bank of China also provided $315 million of loans for a 360-megawatt hydropower station in Zambia, according to the report.

Last year, Asia-Pacific companies and investors announced $6 billion of acquisitions of renewable energy assets outside of their region, compared with $1.9 billion in 2011, according to the report.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus