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Power Africa and Africa50 signed a memorandum of understanding (MoU) on Tuesday to attract power sector financing and develop innovative public private partnerships in sub-Saharan Africa (SSA). Coordinated by the United States Agency for International Development (USAID), Power Africa is a U.S. government-led partnership with African governments to double access to electricity by 2030.

Established by African Development (AfDB), Africa50 is an investment vehicle, which focuses on high-impact national and regional projects, mostly in the power, transport, gas and information and communication technology (ICT) sectors. According to a statement released today, Africa50 will be the nineteenth development partner to join the Power Africa initiative.  

The aim of the partnership between Power Africa and Africa50 is to implement energy and transmission projects in SSA. According to the AfDB, Africa has an energy access of only 40 per cent (the lowest in the world), as over 640 million Africans have no access to energy. Per capita consumption of energy in SSA (excluding South Africa) is 180 kilowatt hour (kWh), compared to 13,000 kWh per capita in the U.S. and 6,500 kWh in Europe.

“We are looking forward to deepening our collaboration with Africa50 to finance new energy and transmission projects in sub-Saharan Africa," said Richard Nelson, Power Africa’s Deputy Coordinator.

Power Africa was announced in 2013 by former U.S. President Barack Obama. It was conceived as an initiative to bridge the gap between Africa’s power shortage and its economic potential by working with U.S., international and African partners to develop the region’s power generation and transmission capacities, and also expand mini-grid and off-grid solutions.

Speaking at the signing ceremony, which took place at this year’s Africa Investment Forum in Johannesburg, South Africa, Koffi Klousseh, Africa50’s Project Development Director, said, “energy generation and transmission are among the most pressing infrastructure needs in Africa, with important economic multiplier effects. To successfully develop energy sector projects requires collaboration among all stakeholders, so we are pleased to partner with the Power Africa initiative and look forward to working with its experienced member companies and organizations to implement power projects on the continent.”