Momentum gathering in Power Africa initiative across Africa
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Thursday, August 7, 2014
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danielmjema.blogspot.com
Standard Bank Group, Africa’s largest lender by assets, has renewed its commitment to the Power Africa Initiative
JOHANNESBURG, South-Africa, August 6, 2014/ -- Standard Bank Group (http://www.standardbank.com),
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 Mr Sim Tshabalala, Chief Executive of Standard Bank Group.
“In 2013 we committed to arrange funding of at least $150m of debt in
the near term across the Power Africa countries, while more recently
that amount has risen to over $400m, principally in Kenya and Nigeria,
with smaller transactions in Ghana and Tanzania.”
Standard
Bank is using its extensive balance sheet and on-the-ground presence
across 20 markets across sub Saharan Africa to help finance projects
under the Power Africa initiative while at the same time actively
leading the policy reform process required to facilitate increased
private sector investment in Africa’s power sector. The bank expects
more than $1bn in commercial projects to be realised across the six
Power Africa partner countries by 2018, and as much as $5bn 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 Mr Tshabalala. “As such, our
commitment to Power Africa is to help fund an additional $600m of debt
in the Power Africa countries through 2018, taking our total since
joining the initiative a year ago to $1bn, and another $2bn across the
rest of sub-Saharan Africa over the same timescale.”
The
Ghana Power Compact (GPC) is the largest US Government transaction to
date under the Power Africa banner. The GPC takes a system-wide approach
to Ghana’s energy challenges with six projects across three areas:
distribution, generation and access to energy.
The
GPC also supports Ghana’s efforts to mitigate climate change by funding
major energy-efficiency initiatives and improving the investment
climate for renewable energy. At the heart of the GPC is a strong
commitment from the Government of Ghana to change the laws and
regulations needed to transform its power sector and put it on a path to
profitability and sustainability.
The
Millennium Challenge Corporation (MCC) will invest up to $498m over the
next five years, to support the transformation of Ghana’s energy
sector, helping the country provide a safe, reliable source of power to
households and businesses. The Government of Ghana will contribute an
additional $37m, bringing the total investment to $535m. This initial
investment is expected to catalyse at least $4.6bn in additional private
sector energy investment and activity from American firms in the coming
years.
“Ghana
is one of Africa’s most dynamic and exciting economies and the GPC will
make a significant contribution towards putting the country on a
sustainable long-term economic growth path,” said Mr Tshabalala.
“Standard Bank will use its presence in Ghana and the rest of the
continent to further support the Power Africa Initiative as well as
other power projects across the continent.”
Habari Zingine
Mjulishe Mwenzako
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