Why did STOA create a subsidiary in Africa?
STOA decided to create a subsidiary in Africa in order to improve the efficiency of its intervention on the continent. If its portfolio of projects is now globally in line with its objective of 50% of the amounts invested on the African continent, the proximity with the field, the decision makers and stakeholders in our operations are key factors to detect opportunities and build long-term partnerships, essential to the implementation and success of these investments. The health crisis and the latest macroeconomic developments are making it more difficult to identify bankable and priority projects for the countries in the region.
Indeed, while energy represents 66% of the opportunities analyzed by STOA and its achievements, the development of energy projects is expected to slow down on the continent due to the saturation of the electricity networks of some countries in renewable energy and energy overcapacity for others, accentuated by the economic crisis.
This crisis has also weakened the budgetary capacities needed to provide the portion of public subsidies that are generally essential for the financing of other infrastructure projects (transport, water and sanitation, and social sectors) and will require the design and promotion of new structures, such as the untied/strategic guarantees proposed by the ECAs.
In this context, it seems essential that STOA be able to evolve the organization of its project origination, in order to (i) be involved as early as possible in the projects it intends to support and (ii) to identify and contribute more actively to the generation, development and structuring of opportunities directly on the ground.
Why did you choose Nairobi as your anchor point?
Nairobi is at the heart of the development of the East African economic zone. It is easy to meet most of the industrial and financial partners operating in the region. East Africa also includes states such as Ethiopia, Kenya and Rwanda, whose dynamism suggests an acceleration of industrialization and therefore a strengthening of the means to finance infrastructure. Nairobi is also an excellent air hub thanks to the numerous regional and international connections that are deployed there daily. Finally, West and Central Africa remain relatively accessible from Paris. Nairobi therefore appears to be one of the best complements to the Paris location of STOA’s headquarters.
Who conducts the business of STOA Africa Limited?
STOA Africa’s activity is led by André MOUNIF who joined STOA as Investment Director in the summer of 2018 and notably negotiated the multi-country and multi-technology platform in renewable energy, JCM Power, and the entry into Daystar, a distributed energy services company based in Nigeria and Ghana, of which STOA is a significant and active minority shareholder. André also has solid experience acquired previously at Proparco in its Energy and Infrastructure department and has previously worked in the PPP unit of the French Ministry of Transport, launching and implementing emblematic infrastructure projects such as motorway concessions, LGV lines, and the Ecotax for heavy goods vehicles. His professional background and the concrete achievements he has made seem very relevant to support the reflection of governments on the African continent in the definition, structuring and implementation of essential and sustainable infrastructure projects.
What are your priorities and means of action?
Our priority will be to lead and complement PROPARCO’s and especially AFD’s African networks, both of which have been present in the field for many years. Our local representation will above all enable us to get closer to the authorities in host countries as well as local or regional partners in order to support them as best we can in the development of their infrastructure projects.
For any information, please do not hesitate to contact André Mounif :
M. +254 (0)1 14 03 52 10 – M. +33 (0)7 72 77 44 80
Top Plaza Building, Off Ngong Road, Kindaruma – Nairobi – Kenya
andre.mounif@stoainfraenergy.com