Power Africa is an innovative five-year American presidential new action launched by President Barack Obama in Tanzania during his Africa Tour in July 2013. The new action targets economic growth and development by giving access to reliable, affordable, and workable power in Africa.
The program is intended to be a multi-stakeholder partnership between governments of the United States of America, Tanzania, Kenya, Ethiopia, Ghana, Nigeria and Liberia, the US as well as the African private sector.
Power Africa is a recent partnership to double access to electricity in sub-Saharan Africa where over 650 million individuals at present lack access.
During the U.S.-Africa leaders’ gathering in 2014, President Obama reiterated that Power Africa’s reach incorporates all sub-Saharan Africa and tripled Power Africa’s goals to work actually in tandem to add 30,000 megawatts (MW) of innovative, cleaner electricity generation capability and increasing electricity access by no less than 60 million new connections.
Progress to Date:
Power Africa has assisted sub-Saharan Africa to produce over 4,100 MW of fresh, cleaner and power generation all over sub-Saharan Africa reach financial close. When it comes on stream, this additional generation has got the potential to support approximately 4 million new connections through increased accessibility to power.
Through Power Africa’s Off-Grid Task including the U.S.-Africa Clean Energy Finance Initiative (ACEF), the U.S. Government has sponsored projects projected to yield further one million new connections.
Delivering on U.S. Government Commitments:
Two years after the launch of Power Africa, numerous U.S. Government departments and agencies have achieved their novel 5-year Power Africa commitments and have proclaimed expanded Power Africa commitments.
The Overseas Private Investment Corporation (OPIC) expects to surpass its original $1.5 billion pledge at the end of 2015, which is required to mobilize a different $1.4 billion in private capital. OPIC has declared extra $1 billion promise through 2018.
The Millennium Challenge Corporation (MCC) supposes to commit approximately $2 billion towards the end of 2015, almost doubling its new $1 billion commitment. MCC is executing power contracts in Ghana and Malawi and is executing energy sector programs in Benin, Liberia, Sierra Leone, and Tanzania.
The U.S. Agency for International Development (USAID) has engaged over 26 consultants across sub-Saharan Africa who will be monitoring over 25,000 MW of projects for prospective support and providing tech assistance to improve the enabling environment for private sector venture. USAID, through its Development Credit Authority, has organized $171 million in private investment for several power plans, using a pipeline that has reached over $300 million in new projects.
The U.S. Trade and Development Agency (USTDA) has given over $17 million to 31 projects that are likely to add over 660 MW to the continent’s power supply and leverage an expected $3.8 billion in private and public financing, or over $250 for any $1 spent.
USTDA intends to commit a lump sum of $10 million in project planning assistance to aid early-stage clean energy projects to attain financial close and execution.
The Power of Partnerships
Power Africa has secured a strategic alliance with African governments, multilateral development banks, bilateral allies, and more than 110 private sector associates to make the most of our impact and accelerate private sector investment in alternative energy.
Power Africa’s original $7 billion commitment has recently gotten over $20 billion in private sector commitments to finance power generation and distribution across Sub-Saharan Africa.
Power Africa’s public-sector partners, such as the African Development Bank (AfDB), the World Bank Group along with the Government of Sweden have collectively devoted another $9 billion to Power Africa.
On July 14th, 2014, the European Union (EU) and Power Africa publicized a whole new partnership at the Financing for Development Conference, by which the EU is committed to investing more than $2.8 billion in sustainable energy activities across sub-Saharan Africa.
Two years after launching Power Africa, we ‘ve mobilized both the public and private Power Africa partners to shell out nearly $32 billion for power generation across sub-Saharan Africa.
U.S.-Africa Clean Energy Finance Initiative (ACEF)
Ever since the ACEF’s unveiling in 2012, with $21 million in grant-based finance from the Department of State, OPIC and USTDA have reinforced 32 sustainable energy projects across 10 African countries to give access to clean energy and lessen greenhouse gas emissions.
These projects have the likelihood to generate a lot more than 300 MW of new renewable power in sub-Saharan Africa and mobilize over $1.3 billion in project investment, a leverage ratio of $66 for each $1 in ACEF funding.
In August 2014, the Department of State committed a total of $10 million to ACEF, bringing its total backing for the program to $30 million.
To date, two OPIC ACEF-supported projects – Gigawatt Global’s 8.5 MW solar project in Rwanda and PAMIGA’s micro-lending program for solar home systems – have received total debt financing.
The billions of dollars accessible for investment in the power sector will lead to real bulbs in people’s homes and electricity needed to grow small companies if state utilities run efficiently and excellently. The policy reforms will enable and improve cross-border energy markets,” AfDB President Donald
Prospects to partner and build relationships with Power Africa
The outcome of Power Africa must be that there is an increase in the fluidity of investment to the renewable energy access sector. Several stakeholders have different opportunities, capabilities, and resources accessible to engage in the implementation of Power Africa.