Latest research revealed that the North and Middle East energy sector of Africa will gather for investment of $1 trillion in upcoming five years. This attempt is going to be taken because countries want to expand their energy generating capabilities and make renewable as their center.
According to research, the multilateral bank for development, Apicorp which has total assets of around $7 billion is going to provide investment for the commitment and plans between 2019 and 2023.
On Wednesday, the CEO of Apicorp, Ahmed Attiga said that they are seeing the growth of overall investment to be applied on energy sectors.
It was also said that the majority of the expenditure will be done at $613 billion on planned investments and the remainder expenditure will be covered by committed investments.
The largest part of overall investments comes from accounts of power sectors. And, the projects whose worth is $90 billion are under execution.
Attiga said that the tremendous growth is seen in power sectors nowadays and becoming the direct outcome of regions of countries which are diversifying energy mix of their energy sectors and want to make renewable energy as their major source of energy production.
He added that the regions many countries have decided to implement transition of energy instead of putting volatility in prices of oil.
Recent report said that the activities of switching from oil usage to gas or renewable energy sources shows maximum growth in countries which have large gas reserves like Iraq and South Arabia or those places where there is significant level of liquids remains in power generation.
It is said that the overall investment will reach up to $186 billion in upcoming 5 years which will contain around $87 billion of investment for commitment.
Oil sector whether it is refining, upstream or midstream is still main investor at $304 billion, and this investment includes nearly 50%of investment done on commitment which amounts up to $138 billion.