Profiting from African Energy
Africa is in an interesting position in that there's very little electric infrastructure already in place.
More than 80% of citizens don't even have access to electricity. Basically, many parts of Africa are starting from square one. And this means they can build an infrastructure that won't have to rely exclusively on fossil fuels.
Of course, natural gas and coal will be a part of the mix. That's a given. But because of Africa's immense solar and wind resources, the demand for long-term stability will dictate that those resources be utilized to their fullest extent.
Africa is still the poorest continent on the planet, but its economy is picking up steam. And in order for growth to continue, energy demands will intensify.
With an abundance of land that can be used for solar and wind farms — and with renewables actually being cheaper than conventional sources in many regions — this continent is ripe for renewable energy opportunities.
Certainly some of the world's largest corporations are paying attention and spending billions to lay the early groundwork for renewable energy development in Africa. These include (but are not limited to):
- ABB (NYSE: ABB)
- Abengoa (MCE: ABG)
- E.ON (ETR: EOAN)
- Siemens (NYSE: SI)
- Sharp Corporation (TYO: 6753)
- JA Solar (NASDAQ: JASO)
- Yingli (NYSE: YGE)
- Suntech Power (NYSE: STP)
- First Solar (NASDAQ: FSLR)
- GE (NYSE: GE)
Over the next few years, I'll be providing you with more specifics on renewable energy development in Africa.
Make no mistake about it: This will prove to be a huge opportunity for us.
In the meantime, if you're looking for a way to play Africa's vast energy bounty, check out some of the companies rushing to develop East Africa's massive oil reserves.
This region actually boasts the richest concentrations of oil on the entire continent — yet until now, it has remained virtually untouched. But that's all changing...
With roughly $7.3 trillion worth of oil at stake, East Africa is quickly becoming a hotbed of action for exploration companies.
One of the most promising has actually been featured by my colleague, Chris DeHaemer. You can read more about that here.
And of course, we'll continue to update you on other new developments in Africa along the way. Rest assured, if there's an opportunity to make a few bucks, we'll be there!
To a new way of life, and a new generation of wealth...
Jeff Siegel
Editor, Energy and Capital
Editor, Energy and Capital
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