Obama un­veils 7 bil­lion power plan for Africa

Enterprise - - INTERNATIONAL NEWS -

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.

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