The U.S Government-led Power Africa initiative is laying the foundation for sustainable economic growth in Africa by providing opportunities for foreign investors to invest in Africa’s energy potentials.
Despite Africa’s vast energy potentials and opportunities ranging from coal, oil, gas, hydro, solar, wind and geothermal, the business environment remains challenging.
With the goal of increasing installed generation capacity by 30,000 megawatts (MW) and adding 60 million new electricity connections by 2030 in Africa, the Power Africa has finalized power transactions expected to generate more than 7200 MW power in sub-Saharan Africa.
Africa, home to more than 950 million people, is the lowest region with electricity access in the world, with more than 600 million people without access to electricity. Most countries in sub-Saharan Africa have about 20% access rates to electricity.
Hopefully, more than 170 gigawatts of additional power-generation capacity could be provided in the Sub-Saharan Africa region, which is double the region’s current installations, says a report.
The 80 Power Africa concluded transactions are valued at more than $14.5 billion with the intention to work with more foreign investors, African partners, donors and private sector to harness the technology, ingenuity and political will necessary to promote the continent’s economic growth in area of modern energy.
Since its inception, Power Africa initiative is said to have facilitated more than 10 million electrical connections, bringing electricity to more than 50 million people in Africa for the first time.