Page 13 - AfrElec Week 13

AfrElec NEWS IN BRIEF AfrElec
POLICY COVID-19 RATINGS
Ghana targets 90% access rate by 2020
The Ghanaian Government has set a target
of expanding electricity access rate to a minimum of 90% of the population by the end of 2020 as it seeks parliamentary approval for a loan of $100mn to connect 526 communities to the national grid.
Currently, six out of the 16 regions have access rates above the national average of 84.98% with Greater Accra Region ranked number one with 96.66% followed by Ashanti Region with 91.57%.
The Savannah Region is ranked at the bottom of the table with an access rate of 54.51%, Chairman of the Committee on Mines and Energy, Emmanuel Akwasi Gyamfi, told Parliament during a presentation of the committee’ report on Wednesday.
According to him, half of the total contract sum of $100mn will be expended on the supply and erection of electrical equipment for the electrification of 292 communities in the Ashanti, Central, Eastern and Bono, Bono East and Ahafo Regions.
The remaining amount will be expended on the procurement, engineering and construction for the electrification of 234 communities in the North East, Savannah, Eastern and Northern Regions.
So far, 10,486 communities, as at
March 2019, had been connected to the national electricity grid under the National Electrification Scheme being pursued since 1990.
The rate of access to electricity in Ghana, the committee noted, had increased from about 15% of the population, at the inception of the NES, to current level of 84.98%.
Senegal Oil & Power event postponed
Due to the restrictions imposed by COVID-19 on travel, meetings and large gatherings globally, Senegal’s official energy event Senegal Oil & Power 2020, originally planned for
May 27-28, will be postponed to a later date. Organiser Africa Oil & Power (AOP) pledges its full support and solidarity with the people of Senegal and the nation’s leadership as they fight the coronavirus.
AOP is working with Senegalese government partners to confirm a new date for the conference, and will continue to support all stakeholders involved in combatting COVID-19 in the country.
The new date will be selected by the Ministry of Petroleum and Energy and other government partners in the energy industry alongside the organiser, and the conference will take place with the theme ‘A New Wave of Investment’.
This is a momentous point in Senegal’s development as a regional center for investment in energy. With final investment decision reached on two mega-projects, Senegal is fully realising its potential.
With the country now on track to become an African energy powerhouse, Senegal Oil & Power 2020 creates critical new links between global capital and Senegalese projects; provides a platform for the government to explain its vision; defines the narrative on how Senegal’s people will benefit from energy and how this will happen; and gives a holistic view of the opportunities of the energy sector in all its diversity, including renewables.
AFRICA OIL & POWER
South Africa loses last investment rating
Moody’s has downgraded south Africa’s one remaining investment grade rating to junk status.
Moody’s said on March 27 that South Africa’s debt would now fall to sub-investment grade, saying unreliable electricity supply, persistent weak business confidence and investment, and long-standing structural labour market rigidities continue to constrain economic growth.
The coronavirus pandemic means the country is entering an expected global downturn in an economically vulnerable position.
The rand fell to a record low of 18 to the US dollar on March 30
The Moody’s announcement, means the country is now “given an opportunity to do the things we are supposed to do,” Tshepiso Moahloli, acting head of asset and liability management at the Treasury, said.
S&P Global Ratings and Fitch Ratings cut the country to sub-investment grade in 2017.
“We have got the tools to deal with financial market stresses, we will not hesitate to deploy those tools in pursuance of our mandate” of financial stability, said Reserve Bank Governor Lesetja Kganyago.
FINANCE
AfDB launches $3bn Fight COVID-19 social bond
The African Development Bank (AAA) has raised an exceptional $3bn in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies.
The Fight Covid-19 Social bond, with a three-year maturity, garnered interest from central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6bn.
This is the largest dollar denominated Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75%.
The African Development Bank Group is moving to provide flexible responses aimed at lessening the severe economic and social
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