Power Africa partners TDB to finance energy projects in 22 countries

09 Nov 2018, 12:00 am
Financial Nigeria

Summary

With the signing of the MoU, the Trade and Development Bank becomes the 18th development partner of Power Africa.

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The Trade and Development Bank (TDB), the financial arm of the Common Market for Eastern and Southern Africa, and Power Africa – the U.S. government partnership with African governments to double access to electricity in sub Saharan Africa – have signed a Memorandum of Understanding (MoU) to finance power projects in 22 African countries.

The MoU was signed on the second day of the African Development Bank’s inaugural Africa Investment Forum (AIF), taking place in Johannesburg, South Africa on November 7-9.

With the signing of the MoU, TDB becomes the 18th development partner of Power Africa, which is run by the United States Agency for International Development (USAID). Launched in 2013 by President Barack Obama, Power Africa works with the private sector, governments and technical experts around the world to increase access to power in Sub-Saharan Africa. The project aims to add more than 30,000 megawatts (MW) of clean, more efficient electricity generation capacity in the region.

The other 17 development partners of the project, apart from the over 140 partnering-private companies, include the World Bank Group, African Development Bank, African Trade Insurance Agency, European Union, Development Bank of South Africa, African Union’s New Partnership for Africa’s Development, United Nations Sustainable Energy for All initiative, the International Renewable Energy Agency, Industrial Development Corporation of South Africa, and the United Kingdom Department for International Development.

“TDB is very pleased to deepen its existing partnership with USAID in further support of the Power Africa initiative, which resonates strongly with TDB’s strategy and mandate,” said Admassu Tadesse, President and CEO of TDB. “We are proud to count USAID among our growing number of cooperating trade and development finance partners in the US.”

To date, Power Africa has helped to bring over 9,500 MW of power projects and more than 12.5 million connections to financial close.

“We are excited to welcome TDB as our 18th development partner. We applaud the Bank’s commitment to increase its exposure in the energy sector from its current 8 percent to 20 percent, the equivalent of bringing $400 million new dollars towards power sector financing,” said Ramsey Day, Senior Deputy Assistant Administrator of USAID’s Africa Bureau.


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