Private Investment in Renewable Energy Sector in Africa: An Economic Analysis

Abstract

African countries still lack a huge amount of energy that is necessary to increase economic growth, alleviate poverty, and sustain economic development (energy insecurity). Public investment in energy sector is still limited to supply household and private sector with their energy needs. Only private investment in renewable energy can play a major role in filling this gap. By applying SWOT analysis, this study illustrates the major threats and weaknesses (challenges) faced by the private investment in renewable energy sector in Africa vis-a-vis the main opportunities and strengths (benefits) these investments can get. Finally, it ends with some suggested solutions that can help at improving conditions of this vital sector and attracting more private investments to it.