Obama Launches $7 Billion 'Power Africa' to Boost African Power Market

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--During his visit to South Africa on Sunday, U.S. President Barak Obama launched the $7 billion "Power Africa" initiative at the University of Cape Town (UCT). Obama said that the plan would begin in six countries: Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania.

More than 10,000 megawatts (MW) of cleaner, more efficient power generation capacity will be added, giving electricity access to more than 20 million new households for the first time.

"If we're going to get investment from international development banks, from private-sector partners, we need to have the predictability that comes with the rule of law and good governance," Obama said.

For related information see February 5, 2013, article - Jeff Immelt Signs GE for $10 Billion of Manufacturing and Power Projects in Nigeria, and March 27, 2012, article - GE Signs $10 Billion Agreement for 10,000 Megawatt Power Build in Nigeria.

There has been no lack of comment on competition among the Western and Eastern powers for an even larger footprint in Africa. Partnerships, and social and industrial development, are the key words. Africa's markets have plenty of room for development, and are mainly starting from low bases. Tanzania, like many other countries, is expecting 6%-plus growth this year.

According to the Office of the U.S. Trade Representative, U.S. companies see growing opportunities in Sub-Saharan Africa. U.S. merchandise exports to the 49-country region were $21 billion in 2011, up 23% from 2010.

Imports into the U.S. from the region were worth $74 billion in 2011, up 14% from 2010. However, $60 billion of the total was for oil.

On a three-nation trip to Africa, the president, with his wife and two daughters, has visited Senegal, South Africa and Tanzania. He stood at the exit portals of the Gore Island slave shipment fort and toured Robben Island, where Nelson Mandela spent 17 years of his imprisonment under the apartheid regime.

The president stressed the virtuous circle of democracy, electric power, education and health care as necessary for a society to progress. Throughout the South African leg of the trip, he has paid tribute to Nelson Mandela and the legacy he is leaving as an example to the continent.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.