US Working to Help Power Africa’s Electricity Goals

The United States has committed itself to attracting investment and aiding several African countries in reducing their electricity deficit.  “Power Africa is designed to catalyze new financing and investment in energy solutions that will help Nigeria and the five other countries that comprise Power Africa to provide reliable electricity to its citizens.

Already, Power Africa has closed on transactions totaling nearly 3,000 megawatts with an additional 5,000 megawatts in the planning stages,” said United States (US) Secretary of Commerce, Penny Pritzker.   Pritzker also said, “We’re working together to attract additional private investment and to secure financing for renewable energy projects.  In addition our commercial law experts are creating a library of documents to help streamline the process for negotiating and closing agreements and transactions under Power Africa.  Power Africa is just one example of our longstanding commitment to ensuring Africa’s continued growth and prosperity.”

Pritzker arrived in Lagos, Nigeria for an energy business development trade mission to West Africa with 20 American energy companies.  She went on to say, “This trade mission is a sign of commitment by our government to support a new US business focus in Africa. Today nearly 600 million Africans, two thirds of the people on the continent, lack electricity.  This problem is particularly stark in rural areas where 85 per cent of the population does not have power.”

She also said, “Studies have shown that Africa will need 300 billion dollars in investments to achieve universal electricity by 2030. Already the United States government has committed seven billion dollars towards Power Africa and has secured additional commitments totaling 14 billion dollars from 35 private sector partners.  Here in Nigeria, the Power Africa initiative is providing technical assistance as your government privatizes its electricity industry.”

Pritzker then indicated that the US is pushing for the seamless renewal of the African Growth and Opportunity Act (AGOA) as well as the growth of entrepreneurship on the continent.  She said, “The commerce department itself is dedicating more human resources to Africa.  A measure that will benefit Africa is an opportunity to grow entrepreneurship on the continent.  Here in Nigeria where youth unemployment is roughly 40 per cent, we want to support innovators as they launch start-ups and create jobs.  This is crucial for long-term stability and economic growth.”

She went on to conclude, “President Obama has asked me to assemble CEOs from both Africa and the United States to discuss ways to deepen commercial relationships and strengthen the presence of US companies in African markets.  It will require all of us to work together; our entrepreneurs and business leaders, our government officials and our citizens themselves. We can accomplish great things if we work together towards a common good.”

Source: CNBC Africa