An investigation of non-financial factors for the appraisal of energy infrastructure projects in sub-Saharan Africa

Zimba, Sydney Kadikula

An investigation of non-financial factors for the appraisal of energy infrastructure projects in sub-Saharan Africa

Thesis / Dissertation

2025

Abstract

During the project appraisal stage, a decision is made on whether to implement a project. Traditional project appraisal techniques largely focus on financial factors because investors require adequate financial returns for their investments. However, non-financial factors, led by policy and institutional frameworks, are also critical to the viability of a project. Employing a multiple case study design, this qualitative research investigated non-financial factors considered in the appraisal of energy infrastructure projects in sub-Saharan Africa. The three case studies that were investigated are the Menengai Geothermal Power Plant Project in Kenya, the Guinea-Mali Power Interconnection Project, and the Morupule B Power Plant Project in Botswana. Project appraisal is a decision-making activity, and therefore, multi-criteria decision analysis, real options, and other theories were explored in the literature review and linked to this investigation. This investigation used secondary data in the form of comprehensive project appraisal documents collected from the official online databases of the African Development Bank and the World Bank. Qualitative Data Analysis (QDA) Minor Lite and Microsoft Office software tools were used for data storage, analysis, and presentation. The researcher found that non-financial factors were applied in the appraisal of energy infrastructure projects in sub-Saharan Africa. These factors fell under political, environmental, technical, legal, social, organisational and managerial, and strategic and synergy categories. The researcher developed a framework for the application of non-financial factors in project appraisal, applying what was found in this investigation. The outcome of this investigation may assist project practitioners to effectively appraise projects.

Keywords

Project Management

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