Power Africa could provide long-term electricity boost

Subject

Tracking progress on Power Africa.

Significance

US President Barack Obama's five-year Power Africa initiative announced in June 2013 faces growing criticism for slow progress as it approaches its halfway point in December. The US Overseas Private Investment Corporation (OPIC) announced 'critical milestones' for commitments only last month for four flagship projects, two large-scale wind schemes in Kenya and thermal power plants in Senegal and Ghana.

Impacts

• Power Africa will stand as a test of whether infrastructure deficits can be plugged by combining private capital with public guarantees.
• Private investment will not materialise in sufficient quantities so long as it operates within inefficient state-monopolised sectors.
• Inefficiencies such as gas-supply problems and subsidies will further undermine the effect of private investment operating on the margins.