Page 6 - AfrElec Week 07 2021
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AfrElec POLICY AfrElec
US, Shell to provide $145mn to support
Africa’s private power sector
THE US Development Finance Corporation over the past five years – and by providing infor-
AFRICA (DFC) and the Shell Foundation have signed a mation, co-financing and guarantees that reduce
partnership to strengthen their investments in the risk of supporting new types of businesses in
renewable energy in Africa and Asia. emerging sectors,” said DFC.
The two partners will invest $145mn by 2025 Through this partnership, the DFC also
to support the African private sector, particu- wants to give a boost to the Power Africa initi-
larly small electricity producers who install clean ative launched in 2013 by former US President
energy systems in rural areas. Barack Obama, with the aim of generating
As part of the partnership, DFC is committed 30,000 MW to electrify 60mn homes and busi-
to providing $100mn in debt and equity to sup- nesses in Africa.
port early stage companies. The financial institution also wants to focus
The Shell Foundation aims to deploy more its partnership with the Shell Foundation on the
than $45mn in grants by 2025 to build a network economic empowerment of women, through the
of high-growth, high-impact businesses that growth of social enterprises that provide essen-
provide distributed renewable energy (DRES) to tial renewable energy services to people living on
households, farmers and businesses in off-grid $2 to $10 a day in off-grid areas.
areas in Africa and Asia. “We are delighted to work with the Shell
The new partnership “has the potential to Foundation to help companies grow through
expand the pool of investment opportunities commercial financing, a sign of long-term sus-
that DFC can make by providing deeper con- tainable development, while prioritising wom-
nections to a portfolio of energy investments that en’s economic empowerment and supporting
the Shell Foundation has built in tandem with economic growth as countries continue to
the UK Foreign, Commonwealth and Develop- respond to the [coronavirus] COVID-19 pan-
ment Office (FCDO), Power Africa and the US demic,” said Dev Jagadesan, acting CEO of the
Agency for International Development (USAID) DFC.
Africa accounts for just 6% of
global energy demand
AFRICA
AFRICA accounts for only 6% of global energy “It has been projected that Africans without
demand and a little more than 3% of electricity access to electricity will increase by 30mn in
demand. 2020 owing to [coronavirus] COVID-19.
Kevin Kariuki, vice-president power, energy “Also, as a way of showing this abject electric-
and green growth at the African Development ity poverty, at 185kWh per annum, the continent
Bank (AfDB), made several assertions at the has the lowest per capital electricity consump-
second webinar series of the Africa Investment tion in the world.
Roundtable (AIR) entitled: “Sustainability En “Also, 900mn people in Africa lack access to
route COP26” in Lagos, while speaking on clean cooking, which excludes them from eco-
the role of AfDB in Africa’s transition to clean nomic and health benefits that come with access
energy. to clean cooking.
“Africa accounts for only six percent of global “We cannot be proud of this development,
energy demand, [and] a little more than three because lack to access clean electricity con-
percent of electricity demand. strains modern economic activities and hampers
“This, I must observe, is abject energy pov- improvements in the quality of lives of Africans,”
erty, because out of 790mn people without access he said.
to electricity globally, 565mn (72%) are in Africa.
P6 www. NEWSBASE .com Week 07 18•February•2021
