The Foreign Service Journal, March 2020
48 MARCH 2020 | THE FOREIGN SERVICE JOURNAL efforts and even established its own Swedish interagency Power Africa team. The World Bank committed $5 billion, and the African Development Bank committed $3 billion—and both entities have already exceeded their original commitments. Our partners also include the governments of Israel, the Republic of Korea, Norway, Canada, the U.K., France, Japan and the European Union. Power Africa actively recruits private-sector partners to help achieve our goals. These partners are required to commit to sup- porting Power Africa goals by adding newmegawatts, new connec- tions, or financing essential energy infrastructure. Currently, Power Africa counts more than 150 companies and nongovernmental organizations among its partners, of which 75 are U.S. companies. Overcoming Obstacles The dedication of the extended U.S. government Power Africa team and its partners is palpable, because we all recognize that access to electricity underpins development efforts across all sectors and advances economic prosperity and self-reliance. One significant obstacle to advancing power projects is the absence of enforced laws and regulations that support transpar- ent practices. Power Africa works closely with governments and regulators to institute reforms and create the right conditions to attract investment, and it’s succeeding. In Nigeria, for example, a major gas project poised to bring power to a million people was stalled due to a legal position taken by the country’s previous attorney general. He wanted any disputes to be resolved in Nigeria, rather than via an interna- tional tribunal; but no lenders would invest with this condition. In response, Power Africa rallied our partners to elevate the issue and focused efforts on a state visit by Nigerian President Muham- madu Buhari to the United States. A week after President Buhari returned to Nigeria, the attorney general changed his position. That decision allowed the private sector to commit to the project. Phase 1 of the project was commissioned in May 2018 and is now delivering reliable electricity to Nigeria’s national grid. What’s important to note here is that our intervention on this one particular deal in one particular country helped many other power projects across the continent. Our work to facilitate this reform created a legal model for other deals, making them attractive to private-sector investment. When we overcome an obstacle to one deal, it is not uncommon that other deals will benefit from Power Africa’s work. As China becomes an increasingly important player in African infrastructure, including in the energy sector, Power Africa is rallying the tools of the U.S. government to improve the business climate for American companies and investors, help African public and private partners develop energy plans and procurement policies that account for critical factors beyond lowest cost, and streamline collaboration between like-minded partners. With the recent launch of Prosper Africa, another U.S. government initiative coordinated by USAID to advance two- way trade between the United States and the African continent, Power Africa can further its progress by working hand in hand with the private sector and African partners to achieve lasting development outcomes and expand investment opportunities. The Power Africa model is producing results and attract- ing public and private investment commitments to the African energy sector. Through Power Africa, the United States has mobilized more than $56 billion in commitments from the pub- lic and private sectors, of which more than $40 billion comes from private companies. Progress Across Many Sectors We recently met a man in Kenya, Morris, whose life has mark- edly improved because of Power Africa. Morris owns a barber- shop on Ndeda Island in Lake Victoria. In 2018 the American company Renewvia Energy, the U.S. Trade and Development Agency and USAID finalized a wind and solar mini-grid project on the island. Nearly 10,000 residents and businesses now have a Power Africa’s approach is different. Flipping the traditional development model on its head, we have taken a demand-driven, transactional approach. President of the Republic of Zambia Edgar Lungu prepares to power on the Bangweulu Solar Plant during the project’s inauguration in Lusaka in March 2019. NEOEN
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