U.S. Government’s Power Africa Initiative Releases 2017 Annual Report Highlighting More Than 80 Power Africa Transactions Closed and More Than $14.5 Billion in Financings Since Inception

by Akin Gump Strauss Hauer & Feld LLP
Contact

Akin Gump Strauss Hauer & Feld LLP

On August 21, 2017, Power Africa published its 2017 Annual Report highlighting more than 80 Power Africa transactions closed and more than $14.5 billion in financings since its inception.  Overall, it has facilitated the financial close of power transactions expected to generate more than 7,200 MW of power in sub-Saharan Africa and generated more than $500 million in U.S. exports.  The report demonstrates how Power Africa, and the recently passed Electrify Africa Act, continues to create opportunities for American businesses in Africa as it proceeds toward its goals of increasing installed generation capacity by 30,000 MW and adding 60 million new electricity connections by 2030 on the continent. These developments are important, since interested investors continue to seek access to the $300 billion energy market in sub-Saharan Africa and tap into the demand for an additional 20,000 megawatts in the region.

About Power Africa

Power Africa is a U.S. government-led initiative comprising 12 U.S. government departments and agencies, and a coalition of more than 140 public- and private-sector partners, including bilateral and multilateral partners, international organizations civil-society organizations, and more than 130 private-sector companies.

The Electrify Africa Act

In February 2016, the U.S. Congress passed the Electrify Africa Act of 2015, which charges Power Africa with increasing installed generation capacity by 20,000 MW while adding first-time energy access for 50 million beneficiaries by 2020.  The Act, which mirrors many aspects of the Power Africa initiative unveiled by the White House in 2013, aims to make government-backed credit more accessible to the private sector in order to deliver access to energy for more than 50 million people in sub-Saharan Africa.  

Power Africa Achievements to Date

Below are some of the most notable milestones and opportunities taken from the Annual Report:

  • Power Africa has facilitated the financial close of power transactions expected to generate more than 7,200 MW
  • Power Africa has supported private-sector companies and utilities in connecting a total of 6 million homes and businesses
  • More than 80 Power Africa transactions valued at more than $14.5 billion are now either online orunder construction, or have reached financial close (notably more than 26 of these deals currently involve the U.S. private sector)
  • Power Africa transactions and other U.S. government-supported energy-sector projects in sub-Saharan Africa that are at or near completion are projected to include more than $500 million in U.S. exports
  • Power Africa’s pipeline includes more than 100 additional transactions and projects involving the U.S. private sector that are projected to support approximately $7 billion in export opportunities
  • Power Africa is now among the largest public-private partnerships for development in history, having mobilized more than $54 billion in commitments toward achieving its goals
  • Power Africa has closed nine wind transactions, resulting in 810 MW of added wind capacity
  • Power Africa has closed 25 solar transactions, resulting in 628 MW of added solar capacity.

Notable U.S. Government Agencies

The following are the leading U.S. government agencies and their contributions taken from the Annual Report:

  • The Millennium Challenge Corporation (MCC) has committed $1.5 billion in the power sector in sub-Saharan Africa since it has implemented compacts in Malawi, Liberia, Ghana and Benin, as well as a power sector threshold program in Sierra Leone. The MCC is also developing a power-sector compact with Senegal
  • The U.S. Agency for International Development has mobilized nearly $219 million in private finance in support of power projects, and has a pipeline of more than $300 million in new projects representing 490 MW of new generation capacity and nearly 500,000 new connections
  • The Overseas Private Investment Corporation (OPIC) has committed $2.3 billion in financing and insurance to support 10 utility-scale power plants, seven off-grid and small-scale renewable projects, and four micro-finance and investment facilities. These OPIC commitments have mobilized more than $3.8 billion in additional investment and are expected to create 1,750 MW of new generation capacity.

Conclusion

The 2017 Annual Report demonstrates how the passage of the Electrify Africa Act has made government-backed credit more accessible to the private sector in order to deliver access to energy for more than 50 million people in sub-Saharan Africa.  This has resulted in easier access to credit for those investors who are interested in exploring projects in the region, as well as an increase in the number of projects developed and financings closed.  It also means a likely continued increase in the number of privatized power projects within sub-Saharan Africa as the U.S. government works with partner countries to reform and open energy markets.

For access to the full report, please click here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Akin Gump Strauss Hauer & Feld LLP | Attorney Advertising

Written by:

Akin Gump Strauss Hauer & Feld LLP
Contact
more
less

Akin Gump Strauss Hauer & Feld LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.