The popular phrase ‘dey fall hand’ is an unofficial slang to express when someone or something has brought disappointment to another. Over time, the Nigerian power dilemma has disappointed its citizens, as the country cannot boast of a day without electricity failure. The unending bottlenecks in the power sector have once again ‘fallen the hands’ of Nigerians.
The Fitch solutions power risk/reward index (RRI) 2021 highlighted the disappointment. RRI is an index that quantifies and ranks the attractiveness of a country within the context of the Power industry, based on the balance between the risks and rewards of entering and operating in different countries.
RRI integrates industry-specific characteristics with wider economic, political and operational market characteristics. These inputs are measured in terms of their significance to investor decision-making in a given country. The output of this assessment is an accurate reflection of the realities facing investors in terms of the balance between opportunities and risks and between sector-specific and wider market traits.
The RRI assessment 2021 conducted in Sub Saharan Africa reveals the countries whose power sector are the most attractive to investors. According to the ranking, Ghana is the most attractive market in Sub Sahara for power sector investors. Kenya, Cameroon, South Africa complete the top four most attractive markets for investors in the power sector. Nigeria did not make the top seven.
Ghana ranks the list first despite the power fluctuation and energy sector debt in the country. The country was ranked first because of the low-risk levels of private investors whilst entering the market. Also, there is a secure return on investment for private sector players.
Furthermore, the populace has affordable electricity, and the government prioritise cooperation with the private sector to ensure sustained progressive growth of the sector.