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USAID Initiative Powering Africa Through Global Partnerships

powering Africa
Two out of three people in sub-Saharan Africa lack access to electricity. With better access to electricity, Africans will have the opportunity to grow socially and economically. Power Africa, a five-year initiative launched by former president Barack Obama, aims to increase access to reliable, affordable and sustainable power in Africa and in turn support Africa’s economic growth.

The initiative is powering Africa by facilitating the cooperation of governments around the world, the private sector and technical and legal experts to increase Africans’ access to power by using the natural resources of the sun, wind, streams, lakes and natural gas.

Powering Africa Key to the Continent’s Economic Development 

Access to electricity is an opportunity for economic and social growth. Power Africa aims to generate 30,000 more megawatts of electricity and electrify another 60 million homes and businesses. Since 2013, Power Africa has closed 90 power transactions valued at more than $14.5 billion, which are expected to generate more than 7,500 megawatts of power in sub-Saharan Africa.

Although 7,500 megawatts seems minuscule compared to the goal of more than 30,000 megawatts, Power Africa’s deal tracking tool application is publicly tracking 440 transactions totaling 33,444 megawatts, and it is internally tracking 800 transactions that have the potential to add another 75,000 megawatts. Additionally, it has facilitated more than 10 million electrical connections, bringing electricity to more than 50 million people. 

Power Africa is connecting homes and businesses through off-grid and small-scale renewable power projects. Beyond the Grid, a sub-initiative launched in June 2014, is powering Africa by working to unlock investment and growth in off-grid energy and electricity access projects across the African continent. Power Africa has funded off-grid companies and projects that have enabled tens of millions of people to gain access to electricity for the first time. 

Power Africa’s Reach Extends to Many Aspects of the Global Economy

Power Africa also focuses on the role of women in Africa’s power sector. The USAID 2017 Power Africa Report revealed the correlation between workforce diversity and performance and showed that companies that invest in women outperform their peers. Power Africa strives to promote gender equality and female empowerment by supporting projects, programs and policies that promote the engagement of both men and women in sub-Saharan Africa.

Additionally, Power Africa is one of the largest public-private partnerships in history, with more than $54 billion in commitments and more than 150 public and private sector partners. While it strives to power Africa by sustaining economic growth, it also provides economic opportunities for American taxpayers, workers and businesses. As the five-year initiative came to a close, USAID Administrator Mark Green announced Power Africa 2.0, a continuation of the original Power Africa. 

Green stated, “Under Power Africa 2.0, we will be expanding beyond our previous targets of increased energy generation and access and looking to make gains in the areas of distribution and transmission. And perhaps most importantly, we will be taking on the enabling environments that allow private enterprise to grow and thoroughly flourish.” 

In its next phase, this initiative powering Africa will focus on improving environments and making sure utilities are stable. It will also target U.S. outreach to help U.S. companies see the opportunities that exist in Africa.

– Anne-Marie Maher

Photo: Flickr

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Electrification to Reduce Poverty in Africa

Electrification to Reduce Poverty in AfricaLack of infrastructure in Africa has continued to perpetuate its impoverished state. Poverty in Africa is caused by dozens of factors that contribute to intergenerational poverty, but a key issue is access to electricity. Although access to electricity has advanced, there are still many more improvements to be made.

In Africa, access to electricity has been a serious challenge. Two out of three people in sub-Saharan Africa lack access to electricity. In total, there are over 600 million Africans without connection to an electrical network. Reports from the International Energy Agency’s (IEA) Africa Outlook state that on average, electricity consumption per capita is not even enough to power a 50-watt light bulb continuously.

Even with electricity, reliability is low. Twenty-five of the 54 countries in Africa report frequent power crises including outages, irregular supply and high electricity costs. This creates numerous problems and constraints for individuals and businesses.

Investments in Africa’s electrification offer many benefits beyond the important direct job creation in energy infrastructure. Evidence suggests that household electrification also increases job opportunities due to its ability to allow people more working time, and enables the growth of rural micro-entrepreneurship. Improvements appear to be underway, with a variety of recent initiatives aimed at investment in electrification.

Africa’s demand for electricity is also growing. With a current growth rate of 6 percent per year, it will likely exceed GDP growth until 2040. This has sparked private investment and stimulated more diversified project financing. As a result, sub-Saharan Africa has seen power generation increase by 21 percent, with Chinese contractors accounting for 30 percent of this growth, to reach 115 gigawatts between 2010 and 2015.

Investment interest in Africa’s electrification has continued to increase since 2011. Of the 38 sectors reported in the Financial Times fDi Markets database, which monitors investment projects, capital investment and job creation, the alternative/renewable energy sector was the third most attractive for companies that invested in Africa in 2015 and 2016.

One major investment highlight was the $21 billion for new projects, many of which focus on renewable sources of energy. Investment trends in the renewable energy sector continue to be especially impressive, further combating poverty in Africa. Ethiopia has been seen as a leader in clean energy infrastructure, having generated the bulk of its energy needs from hydropower and other investments in geothermal, solar and wind. Its recent creation of the Ashegoda wind farm has the capacity of generating 120MW.

In the Democratic Republic of the Congo, the development of the Grand Inga Dam has the potential to generate 40,000MW of electricity. Both of these provide Africans with not only more access to electricity but also ways to make it more affordable.

Improving access to electricity is essential to decreasing poverty in Africa. It provides households and businesses with a tool for successful operation. There have been great strides in solving this problem in Africa, yet much work still needs to be done. Estimates from the World Bank concluded that 93 percent of Africa’s economically viable hydropower potential remains unexploited.

Persistent challenges need to be addressed by the government. A Greenpeace South Africa report found that two main challenges are changing misconceptions about renewable energy’s capabilities and developing the political will to invest in clean energy infrastructure. There is no doubt that through the electrification of Africa, many new opportunities for its countries will be brought to light.

– Ashley Quigley

Photo: Flickr

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How Chinese Foreign Aid Boosts African Development

Chinese foreign aid boosts African developmentIn 15 years, China has built invested over $350 billion in Africa. Chinese foreign aid boosts African development and covers 140 African countries and territories.

China has been engaging with African countries since 1955, with the Bandung Conference. From the first efforts in Egypt to the TAZARA Railway, the most remarkable project China has in Africa, Chinese foreign aid boosts African development mainly in infrastructure, education, agriculture and energy generation.

Energy Generation

China spent $134.1 billion on energy generation and supply from 2000 to 2014. In August 2017, China-Africa Renewable Energy Cooperation and Innovation Alliance and Africa Renewable Energy Initiative (AREI) signed a Memorandum of Understanding to consolidate a cooperative relationship. This project includes building micro-grids for which Chinese providers and core renewable energy manufacturers will provide technological and financial support. This project shows prominent progress in renewable energy.

In addition, China has been increasingly engaging in the wind and solar PV industries under South Africa’s Renewable Energy Independent Power Producers’ Procurement Program, which focuses more on Chinese investors and companies’ investments, technology supply and manufacturing. Renewable energy generation is a win-win strategy, protecting the global environment and building the China-Africa connection.

Agriculture

Until 2014, China spent $10 billion on agriculture, forestry and fishing projects. In 2015, Chinese President Jinping Xi announced a $60 billion funding for 10 comprehensive plans to strengthen China-African cooperation. China-Africa agricultural industrial chains are one of the top priorities in these plans.

Additionally, China has been introducing agricultural technology and new breeds into Africa and has been sending agricultural experts to train African farmers. From 2000 to 2013, Chinese foreign aid to Africa in the agricultural sector has grown from $25 million to $325 million. The remarkable growth has brought African citizens an alternative way to improve their lives.

Infrastructure

Infrastructure investment has dominated Chinese foreign aid to Africa for more than a decade. The most significant project is the TAZARA railway in East Africa. The TAZARA railway was designed and built from 1968 to 1976. This 1,860 km railway stretches from Tanzania’s largest city, Dar es Salaam, to New Kapiri Mposhi in Zambia, which eliminates Zambia’s economic dependence on Rhodesia and South Africa.

This railway benefits the many rural regions along the route. There are thriving marketplaces at every train platform, providing a valuable method for rural residents and farmers to trade daily necessities. China invested more than $400 million in this project, along with technical assistance.

TAZARA railway is only one example of the many infrastructure projects China has worked on in Africa. From 2000 to 2014, China invested $88.8 million in transport and storage. The infrastructure aid has helped to stabilize African economic development.

Overall, Chinese foreign aid boosts African development mainly in infrastructure, agriculture and energy generation. Even though Chinese foreign aid to Africa is controversial, its investment has motivated African development on a large scale.

– Judy Lu

Photo: Wikimedia Commons