Obama's Power Africa Initiative Focuses On Geothermal Power in Ethiopia
Earl Gast, the United States Agency for International Development (USAID) assistant administrator for Africa, on Thursday,
told journalists across Africa via a telephone press conference that Power Africa is gaining ground in terms of financial availabilities for the initiative. The Power Africa Initiative, along with Trade Africa was launched last year by President Barack Obama following his visit to Africa.
Gast said that currently, Power Africa has secured close to 20 percent of the USD seven billion which is to be available for 20 million Africans in the continent. Ethiopia, Kenya, Tanzania, Ghana, Liberia and Nigeria are the six benefiting countries of Power Africa Initiative.
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US Power Africa Attracts $2.7b Investments
The US efforts to increase twofold electricity supply in sub-Saharan Africa has already attracted investments valued at $2.7 billion, according to Imara Africa Equity Research.
Overseas Private Investment Corporation (OPIC), a US government agency, has dedicated $1.5 billion for the first five years to the US initiative – known as Power Africa – according to OPIC’s Mimi Alemayehou.
The Millennium Challenge Corporation (MCC), another US agency, had pledged $1 billion to Power Africa, its Kamran Khan has said.
Additionally, the US Agency for International Development (USAID), a well-known US development agency, has agreed to commit $285 million to the initiative in grants and risk mitigation, USAID’s Andrew Herscowitz revealed.
Power Africa Draws New Investment to Region
The U.S. initiative that aims to double access to electricity in sub-Saharan Africa has drawn new investments to the fast-growing region, according to representatives of three key agencies that support the project.
"We are seeing developers investing for the first time in power in emerging markets. We're seeing developers we've never seen before. We are also seeing with the private sector in Africa an opportunity to partner with American companies," said Mimi Alemayehou of the U.S. Overseas Private Investment Corporation (OPIC). OPIC mobilizes private capital to help solve critical challenges in developing countries.
Ethiopia bids to be Africa's powerhouse
Ethiopia is turning to renewable energy technology as the East African country looks to become a powerhouse for its regional partners.
Last month, Ethiopia launched one of the continent's largest wind farms in a bid to rapidly boost its generating capacity over the next three to five years.
The Ashegoda Wind Farm and the Grand Renaissance Dam, under construction on the Nile, are just two of the major projects outlined in the Ethiopian government's five-year Growth and Transformation Plan.
Both developments will see Ethiopia's transition into one of the regions biggest energy exporters as electric output surges from 2,000 megawatts (MW) to 10,000 MW. More than half of this is expected to come from the Renaissance Dam.
