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AFC Accelerates Power Investment in Africa

Key partner in USD 7 billion US Presidential Power Africa Initiative

The Africa Finance Corporation (AFC) a key partner from Africa, has been selected to participate in the US Presidential Power Africa Initiative, to accelerate investment in Africa’s power sector over the next five years. The key goal of the Power Africa Initiative is to increase access to clean, geothermal, hydro, wind and solar energy. It will help African countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions, by providing the capacity and resources to generate an additional 10,000MW of power.

The President Obama Power Africa Initiative, coordinated by USAID, is a multi-stakeholder partnership between the United States Government, The U.S. Agency for International Development (USAID); The Overseas Private Investment Corporation (OPIC); The U.S. Export-Import Bank (Ex-Im); The Millennium Challenge Corporation (MCC); U.S. Trade and Development Agency (USTDA); U.S. - Africa Clean Energy Finance Initiative (US-ACEF); The U.S. African Development Foundation (USADF), and the Governments of Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania (“Power Africa Countries”) and the private sector.
AFC, a multilateral finance institution, was established in 2007 with an initial capital base of USD1.0 billion, to be a catalyst for private sector infrastructure investment across Africa. AFC was established to help fill a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.
The AFC will invest over USD250 million in the power sectors of Ghana, Kenya and Nigeria, whilst catalyzing a further USD1billion in additional investments in sub-Saharan Africa energy projects. The AFC USAID partnership under the Presidential Power Africa Initiative will mobilise the resources, tools and combined commitment of the US Government, the six partner governments, and the private sector in a coordinated regional effort to assist governments and investors by accelerating the financial close of power transactions, stimulate new investment, and help build the regulatory, economic and policy foundation to meet Africa’s increasing demand for electricity. Private sector partners will benefit from an interagency coordinated effort to leverage and coordinate United States Government tools including expertise and risk mitigation, and undertake the required policy framework for specific projects, which enables private sector partners to implement their commitments to invest in the power sector in the Power Africa Countries.

Andrew Alli President & CEO, AFC commenting on the groundbreaking partnership said “The International Energy Agency has reported that sub-Saharan Africa will require more than USD 300 billion in investment to achieve universal access to electricity by 2030. AFC will provide additional investments in energy projects annually, far in excess of its commitment to the Power Africa initiative. AFC aims to provide Power Africa Countries not only access to financial, deal structuring and sector technical expertise, but also advisory services, project development capacity, funding to bridge the power infrastructure investment and access deficit, a critical pillar for economic growth across Africa."

In addition, in a CEO roundtable hosted by President Barack Obama in Dar es Salaam, Tanzania, Andrew Alli congratulated him on the launch of the Power Africa Initiative and noted the importance of power for the economic growth of Africa and all its consequential benefits
<h5>About AFC - www.africafc.org</h5>
AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa. AFC is the lead investor in the award winning Cabeolica project, a USD90 million, 26MW landmark renewable energy wind power project in Cape Verde. AFC is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund (PAIF). AFC is a partner with Vigeo Holdings Limited and Tata Power Delhi Distribution Limited for the acquisition of power distribution assets in the current Nigerian Government power sector privatization round. Additionally in Nigeria, AFC made investments to support marginal field operators in the up and mid-stream oil and gas sector companies such as Neconde, FHN and Seven Energy. AFC is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the Kpone IPP project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana. AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa’s connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity. AFC provided a USD50 million convertible debt investment in ARM Cement Limited (ARM), the second largest cement operator in Kenya to support expansion initiatives across Eastern and Southern Africa including; development and construction of a lime plant in Tanzania and expansion of ARM’s cement capacity in Kenya. The transaction marked AFC’s first bilateral investment in Kenya. AFC provided financing for Ethiopian airlines fleet expansion in the acquisition of Africa’s first Boeing 777 airline. AFC also invested in the Bakwena toll road project in South Africa and the EURO 270 million Konan Bedie Toll bridge in Côte d’Ivoire, the landmark transport PPP project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent. AFC has launched a landmark USD15 million project development facility with the Dutch Development Bank FMO, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.

For more information, contact:

White House Power Fact Sheet and Press Release: http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa

Andrew Alli
President &amp; CEO Africa Finance Corporation

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