Infrastructure Investment in Emerging Markets: The Case of Lake Turkana Wind Power in Kenya

Kasper Hedegaard Pedersen & Niklas Kløve Ryelund

Student thesis: Master thesis


In light of the lack of public funding to close the infrastructure gap in emerging markets, the purpose of this paper is to find strategies for foreign private investors to deal with the institutional challenges in these markets. The paper is motivated by the limited literature on the dynamics between institutions and infrastructure investment strategies; therefore a case study of Lake Turkana Wind Power in Kenya was applied as a force of example. Based on existing literature, five propositions were derived and evaluated on the case on the foundation of indepth interviews with stakeholders and industry experts. The results indicate that the unique institutional context require several tailored strategies that are demanding for the investors. The right team of partners is required to support navigation through the institutional context and increase bargaining power over the state. In particular, the investors need to safeguard against the informal institutions and contracts with the state. In regards to the existing literature, the propositions were confirmed to a moderate extent. The findings of the paper can be generalized in an analytical nature to derisk future infrastructure projects in emerging markets and offer a new line of thoughts on the dynamics between institutions and strategies.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
Publication date2018
Number of pages178