African Development Bank to deepen and expand its work in the energy sector

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President Kaberuka welcomed the initiative, “Power Africa is a timely initiative and the Bank will work with the six countries for a successful implementation.”

The African Development Bank (AfDB) will, as part of its support for US 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. Moreover, the bank will emphasise 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 US$3bn over the next five years,” 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 US$1.4bn out of the AfDB’s US$1.6bn over the last five years in the six priority countries’ energy investments.

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This entry was published on 2013/07/06 at 21:54 and is filed under Materials, Services. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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