The World Bank Group on Wednesday committed USD 5 billion in new technical and financial support for energy projects in six African countries-- Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania--which have partnered with President Barack Obama's Power Africa initiative.
Making the announcement on the second day of the 1st US-Africa Summit, President of the World Bank Group, Jim Yong Kim (PhD), said the new financial commitment was urgently needed to generate more electricity for the people of Africa, 600 million of whom have no access to electricity despite the fact that Africa possesses some of the world's largest hydropower, geothermal, wind and solar potential, as well as significant oil and natural gas reserves.
"We think that the US Power Africa initiative will play an extremely important role in achieving the goal of providing electricity for Africa. So today I'm very pleased to announce that the World Bank Group, following President Obama's lead, will partner with Power Africa by committing USD 5 billion in direct financing, investment guarantees, and advisory services for project preparation in Power Africa's six initial partner countries, Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania. The US government and the World Bank Group are working now on specific tasks and milestones which could help to achieve one quarter of Power Africa's goal of generating 10,000 megawatts of new power in Sub Saharan Africa," Kim said.
Africa's power crisis forces families and communities to spend significant amounts of their income on costly and unhealthy forms of energy such as diesel generators or wood for indoor cooking fires. Africa has vast hydropower potential but uses just 8 percent of this untapped water force. In comparison, Western Europe uses 85 percent of its available hydropower potential, which has contributed to their economic development and industrialization.