Obama unveils 7 billion power plan for Africa
US President Barack Obama has unveiled a $ 7 billion power plan for Africa in order to upgrade its power networks. It is an attempt towards ending blackout in order to initiate business investment on the continent.
According to the International Energy Agency, sub-Saharan Africa will need investment of more than $300 billion to achieve universal electricity access by 2030. Despite breakneck economic growth, an estimated 587 million Africans, roughly half the continent’s population, does not have access to electricity, according to the International Energy Agency. Only around 25 percent of people in rural areas have access to electricity.
The plan leverages loan guarantees and private sector finance. The goal is to double the access of power in sub-saharan Africa where more than two-thirds of the population is without electricity.
The initial phase will focus on Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania, as they do not have enough power to attract investment. This project will assist in making the conditions possible for investment.
The bulk of the investment will come from US ExportImport Bank, building on the enormous potential to develop clean geothermal, hydro, wind and solar energy.