DAR ES SALAAM, Tanzania, July 2, 2013/ — The African Development Bank
(AfDB) (http://www.afdb.org) will, as part of its support for U.S.
President Barack Obama’s Power Africa initiative, deepen and expand its
work in reforming the energy sector.
Already a major investor in the energy sector, the AfDB will scale funding
for energy production, transmission and distribution infrastructure,
cross-border power pools, as well as government policy and regulatory
reforms. The Bank will particularly emphasize reforms for national power
utilities, many of which are in need of better business models and
financial reinforcement.
“We expect to allocate as much as $3 billion over the next 5 years. This
will leverage at least 4 times more investments in the energy sector. Our
interventions will include investment loans, reforms, advisory, and
guarantees,” AfDB President Donald Kaberuka said in Dar es Salaam, in
reference to Tanzania, Kenya, Ethiopia, Ghana, Liberia, and Nigeria — the
Power Africa priority countries.
“Reforms are the key,” Dr Kaberuka said. “The billions of dollars available
for investment in the energy sector will translate into actual bulbs in
people’s homes and electricity necessary to grow small businesses if state
utilities run efficiently and effectively. The policy reforms will
facilitate and enhance cross-border energy markets.”
The main financial source for the Bank’s assistance to the energy sector in
the Power Africa countries is the African Development Fund (ADF), which is
its concessional window. The ADF contributed $1.4 billion out of the Bank’s
$1.6 billion over the last five years in the six priority countries’ energy
investments.
Addressing CEOs in Tanzania on Monday, US President Barack Obama said that
he saw Africa as the next major success story and with Power Africa he
wanted the US to be part of that success.
“So that’s why, yesterday, I announced Power Africa — our initiative to
double access to electricity in sub-Saharan Africa. I want to thank the
African Development Bank for its partnership, as well as many companies
that have stepped up with commitments, including some here,” President
Obama said.
“And I have to say, those who are involved in this process, they
continually tell us the problem is not going to be private-sector
financing. The problem is going to be getting the rules right, creating
the framework whereby we can build to scale rapidly. That’s what we’re
committed to doing.”
President Kaberuka welcomed the initiative: “Power Africa is a timely
initiative and the Bank will work with the six countries for a successful
implementation.”