Are Africa’s Frontier Markets Being Mispriced by Investors?

Some of Africa’s greatest power deficits sit in markets international capital often considers too difficult. But does perceived risk always match the reality on the ground?

In the latest Let’s Talk Energy podcast, hosted by Energy News Network (ENN) in partnership with The Electricity Hub, Matthew Fredericks, Managing Director and Co-Founder at USP&E, challenges the conventional view of Africa’s frontier energy markets.

Drawing on experience across Mali, Liberia, Burkina Faso, Togo and other complex jurisdictions, Matthew argues that these markets are not necessarily unworkable, but underserved by companies prepared to mobilise, operate and remain through difficult cycles.

The conversation explores what that means for investment. As private capital increasingly looks towards mining and industrial power, Matthew identifies captive and embedded generation, hybrid thermal-solar-storage systems, gas-to-power and brownfield rehabilitation as areas that could be overlooked by international investors.

But infrastructure alone is only part of the equation. From maintaining operations through political and commercial disruption to sharing risk with clients, Matthew explains why trust, technical breadth and what he calls “staying power” can become important components of bankability in frontier markets.

As investors reconsider where Africa’s next infrastructure opportunities could emerge, the discussion asks whether some of the continent’s most challenging markets may also be among its most underappreciated.