Dominovas Energy Corp. (fka DNRG)

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Obama’s power initiative in Africa needs re-energising


As President Barack Obama embarks on Thursday on a farewell trip to the UK, thoughts are turning to how the outgoing leader’s legacy is likely to be remembered. To those like me who are engaged in bringing energy to developing nations, the answer is obvious. Mr Obama’s greatest legacy will be his visionary campaign to bring electricity to the people of Africa. Perhaps.

Enshrined in US law earlier this year through the Electrify Africa Act, Mr Obama’s Power Africa Initiative could guarantee a far-reaching legacy fitting for the first African-American President of the US. In the increasingly fractious and fractured world of American politics, the rare bipartisan support that this legislation received in Congress was exceptional.But there is no room for complacency. The extraordinary circus around electing Mr Obama’s successor has – amongst other things – raised concerns that Power Africa could have its plug pulled by his successor, particularly if evidence for the project’s success is scant.

So just how successful has this initiative been so far? And what is required to deliver its promise?

Launched in 2013, the Power Africa Initiative sought to leverage the combined resources of the continent’s energy community, from national and donor governments to private companies and international financial institutions, for the sole purpose of tackling energy poverty.

The scale of the problem is truly appalling. More than half a billion people in Sub-Saharan Africa have no access to reliable, affordable electricity. Less than 14 per cent of the population in Burkina Faso and less than 10 per cent in Malawi, to cite just two examples, have access to regular power supplies.

The bare facts for the rest of the continent are just as dire. Moreover, if current trends continue, the amount of people in Africa without access to electric power is set to grow, not shrink in the coming years due to population rates outstripping installation of new power capacity.

With the significant financing raised by Obama’s initiative – $7bn of US government funds and a further $43bn in commitments from the public and private sectors, including the British Government – one would expect equally impressive progress on electrification. Sadly, the numbers are lacklustre at best. Two years into the programme, in 2015, the initiative had yet to deliver any electricity. And this year matters are no better. Clearly, something needs to be done to recharge this initiative and flick the switch back on.

The first priority must be to balance the need for large-scale electrification with the provision of immediate, life-saving power. Big, ambitious infrastructure projects have been the traditional approach to electrification in developing nations. Of course they have their place. But they take time. And millions of African citizens don’t have much of that particular commodity.

The direct and indirect impact that access to power has on an individual’s education, healthcare and economic prosperity can be decisive. So efforts should be focused on securing immediate wins, maximising the reliable use of existing grid infrastructure and fast-tracking feasible solutions that currently exist and can bring immediate benefits. For example, a large solar plant can be constructed in just six months compared to 12-18 months for a large wind farm.

Today, financing, or a lack of it, is no longer the primary cause of Africa’s power deficit. The burning issue is the scarcity of viable, bankable projects on which to deploy the billions of investment dollars now available. Sourcing these projects requires focus right now and will allow Power Africa to not only drive demonstrable impact, but also empower local entrepreneurs seeking to play a role in the continent’s electrification.

Working to source those individuals and converting their ideas into bankable, quickly realised projects through technical and financial support would be money better spent by Obama’s Power Africa executives. The private sector has the commercial and technical toolkit to lead on the large-scale projects. Slowing down their efforts by adding another layer of bureaucracy through a multi-sector effort is proving frustrating and ineffective.

Mr Obama has achieved a great deal, however, by shifting focus from state aid, for too long the preference of past US presidents, to state trade. This must be commended, along with the spotlight that his initiative has shone on the continent’s power deficit.

Galvanising a cross-sector, global community to take action in addressing Africa’s greatest opportunity and redressing its most egregious wrong is no mean feat. But raising both awareness and capital is just the beginning, albeit an impressive one. We now need to connect with the renowned entrepreneurial spirit of African people to deliver tangible, sustainable change to their communities.

Unleashing that power will propel Africa to a brighter future and secure the greatest legacy of the 44th President of the United States of America, regardless of who succeeds him.


http://blogs.ft.com/beyond-brics/2016/04/21/obamas-power-initiative-in-africa-needs-re-energising/