Attracting investment and managing risk
31 January 2013
Chief Technology and Sustainability Officer
Bjørn Kj. Haugland
The investment case
 Robust economic growth
 Over 10% of world oil &
gas production
 30% of world’s known mineral
resources
 20 African companies with annual
revenues of over $3 billion and over
100 with revenues of over $1 billion
 50% of the population under 30
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
2
Foreign investment in Africa
 Significant growth and profit
opportunities
 Rate of return on FDI higher than
anywhere else in the developing world
 Foreign direct investment twice the
level of global aid
 More investment needed to meet
development goals
 A sustainable world in the 21st century
must include a positive future for Africa
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
3
CDM –attracting private investment
 The dual goals of CDM;
- promote sustainable development in
developing countries
- allow industrialized countries to earn
emissions credits from their
investments
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
4
CDM – shortcomings in Africa
 CDM stimulates investment in the
projects where carbon reductions are
most profitable
- No large industrial projects that give
“profitable CERs”
- Projects are too small compared to
transaction costs
- Has been difficult to prove
additionality
 Competence and capacity at all levels
 Finance
 Perceived higher risk
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
5
Managing your investment risks in 5 steps
1. Make investment decisions based on
socio-economic analysis
2. Use stakeholder analysis to identify
needs and constraints
3. Define goals and ensure positive
effect on sustainable development
4. Explore alternative solutions based on
feasibility studies and risk
assessments
5. Robust decision making based on
value oriented approach that
considers all the interfaces
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
6
DNV in Africa
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
7
DNV commitment
 UN Private Sector Forum, 20 Sept.
2011;
- support the development of
international standards and guidelines
to ensure growth in Energy Access in
developing countries.
- provide independent assurance that
supported programs and activities for
Energy Access will meet their
objectives through frameworks for
monitoring, reporting and verification
- to ensure transparency and trust in
the 'Sustainable Energy for All'
targets, and support local capacity
building efforts for efficient technology
transfer
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
8
Turning risk into reward
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
9
Safeguarding life, property
and the environment
www.dnv.com
Attracting investment and managing risk
Bjørn Kj. Haugland
© Det Norske Veritas AS. All rights reserved.
10
Download

Bjørn K. Haugland, DNV - Attracting Investment and Managing Risk