Standard Chartered has committed over $2bn to finance energy projects under the US spearheaded Power Africa Initiative.
The five-year partnership between the United States, six African governments and the private sector represents a coordinated cross-border effort to build the regulatory, economic and policy foundation to double access to power in sub-Saharan Africa.
The governments of Ghana, Tanzania, Kenya, Nigeria, Ethiopia and Liberia and a group of private-sector firms are taking part in the initiative to improve access to clean, reliable power in Africa.
Power Africa will add over 10,000 megawatts of cleaner, more efficient electricity generation capacity – equivalent to 250 per cent of Nigeria’s current power generation – increasing access to electricity by over 20 million new households and businesses.
Standard Chartered is committing $2bn of new financing, more than 20 per cent of the initial private sector contribution to Power Africa, alongside the US government’s provision of $7m of financial support.
“More than two-thirds of the population of sub-Saharan Africa is without electricity and more than 85 per cent of those living in rural areas lack access,” the White House said in a statement.
Using its geographic coverage across 37 African countries and leading project and export finance expertise, Standard Chartered will work closely with US agencies, including the Export-Import Bank, the Agency for International Development and the Overseas Private Investment Corporation (OPIC) to develop the policy framework for specific projects.
Speaking in Dar es Salaam during President Barack Obama’s visit, Group Chief Executive of Standard Chartered Peter Sands said, “Throughout our 150 years of history in Africa, we have always strived to contribute to social and economic development, financing trade and investment across the continent.”
