Kenya's energy market to benefit from French investment

26/05/2011 - Kenya property & investment news Posted by Bob Brunskill
Kenya's energy market to benefit from French investment

A Sh500 million (£3.9 million) investment from French sovereign fund PROPARCO will help boost environmental initiatives in Kenya, Business Daily Africa reports.The multi-million-pound finance project is aimed at helping the African nation reduce its carbon emissions through numerous environmentally-friendly schemes including electricity generation from biomass, solar, hydro, or wind sources.Etienne Viard, PROPARCO's managing director, said: "This strategic decision reflects the intention to play the role of a catalyst for private investment in regions that have been overlooked by investors and have not had access to carbon finance in spite of a substantial potential for projects to reduce greenhouse gas emissions."The French investment in green energy projects comes as sovereign funds are ramping up their exposure to the Kenyan market.Indeed, over the course of the last year a total of four sovereign funds bought big stakes in Kenyan companies and extended credit lines worth Sh25 billion, highlighting the increased investor confidence in the Kenyan economy.