Momentum Gathering in Power Africa Initiative Across Africa

STANDARD Bank Group, Africa’s largest lender by assets, has renewed its commitment to the Power Africa Initiative, a multi-stakeholder project driven by US president Barack Obama, which aims to double access to power in Africa by significantly accelerating investment in the sector over the next five years.

The US government has committed more than US$7 billion dollars in financial support to Power Africa over five years.

Power Africa aims to add more than 10 000 megawatts of cleaner, more efficient electricity generating capacity, and in the process electrifying at least 20 million new households and commercial entities with on-grid, mini-grid, and off-grid solutions.

The six initial partner countries – Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania – have set ambitious goals to boost their power generating capacity with the ultimate aim of enhancing energy security, decreasing poverty and fostering economic growth.

“We are seeing an increasing pipeline of power projects across sub-Saharan Africa,” said Sim Tshabalala, Chief Executive of Standard Bank Group. “In 2013 we committed to arrange funding of at least US$150m of debt in the near term across the Power Africa countries, while more recently that amount has risen to over US$400m, principally in Kenya and Nigeria, with smaller transactions in Ghana and Tanzania.”

The bank expects more than US$1billion in commercial projects to be realised across the six Power Africa partner countries by 2018, and as much as US$5 billion when one includes the rest of sub-Saharan Africa.

“Standard Bank will strive to arrange or underwrite at least half of the debt required for these projects,” said Tshabalala. “As such, our commitment to Power Africa is to help fund an additional US$600m of debt in the Power Africa countries through 2018, taking our total since joining the initiative a year ago to US$1bn, and another US$2bn across the rest of sub-Saharan Africa over the same timescale.”

Source : The Namibian