Fund managers are set to invest in renewable energy projects in the rest of sub-Saharan Africa as returns could outstrip private equity investments in the region, Standard Bank, Africa’s biggest lender by assets, said this week.

“Standard Bank believes Africa will follow the international trend to boost renewable energy’s contribution to national grids as sub-Saharan African nations step up efforts to alleviate their chronic power shortages,” Ntlai Mosiah, the head of power infrastructure at Standard Bank’s Corporate Banking said.

“That will make for some very compelling investment opportunities for institutions that wish to capitalise on Africa’s scramble for reliable and sustainable power,” Mosiah continued.

It is understood that about 48 sub-Saharan countries have a joint power generation platform of only 68 gigawatts (GW), which is similar to Spain’s power-generation abilities – yet its population is less than five percent of sub-Saharan Africa.

Mosiah insisted that Standard Bank is devoted to making available more money for renewable energy projects in South Africa and the rest of the continent..

The bank’s continued funding of these projects is aimed at enabling a smooth transition from “legacy power generating infrastructure that rely on fossil fuels, to systems that place more emphasis on sustainable energy solutions for future generations.”

Standard Bank has operations in 19 African countries. It recenly opened a rperesentative office in Ivory Coast earlier this month