아프리카ㆍ중동

This paper develops a classification ofinvestor risks and surveys 51 private investors andfinanciers in the power sector in Sub-Saharan Africa. Thepaper aims for a better understanding of what can be done toattract private solutions to fill the investment gap. Itfinds that the average investor assigns more weight to powersector policy and regulatory framework risks than to thewider sector and country context risks. And, despite manychallenges, investors perceive three segments as ready forprivate solutions in Sub-Saharan Africa: power generation,off-grid electrification, and mini-grids. Investors seelower readiness in distribution, transmission, and retail.The paper finds that the average investor isforward-looking, as neither the track record of the powersector nor the firm’s personal track record is as importantas the growth potential in the market. The paper uses thefindings to reality-check data-based measures of regulatoryreadiness, namely the Regulatory Indicators for SustainableEnergy and Power Sector Reform Index and analyzes whichelements correlate best with investor sentiment to optimizeand streamline these indexes accordingly. The resultsprovide important lessons for governments and developmentpartners to devise appropriate de-risking instrumentstailored to the risks that matter most to investors.