Power Africa Development Partners
Power Africa has established formal partnerships with key stakeholders, including multilateral organizations, government and development finance institutions as well as technical agencies, working in Africa’s energy sector.
Through joint Memoranda of Understanding (MOU), Power Africa is working creatively and collaboratively with these partners to leverage collective technical expertise, financial resources, and tools to overcome Africa’s significant energy deficit, increase productive uses and economic opportunity and ultimately reduce poverty for tens of millions of citizens in sub-Saharan Africa
Specifically, Power Africa aims to spur additional public and private sector investment, improve energy generation and transmission capacity, and improve enabling environments to ensure sustainable electricity access for years to come.
Africa50
African Development Bank
African Trade and Investment Development Insurance
Development Bank of Southern Africa
Eastern and Southern Africa Trade and Development Bank
Industrial Development Corporation of South Africa
United Nations Development Programme
World Bank Group
African Union Development Agency
International Renewable Energy Agency
Rocky Mountain Institute
Sustainable Energy for All
MULTILATERAL ORGANIZATIONS AND DEVELOPMENT FINANCE INSTITUTIONS
Africa50 and Power Africa signed a MOU at the African Development Bank's Africa Investment Forum on November 12, 2019, in Johannesburg. The partnership attracts power-sector financing for transmission line development, advances transmission line development through new and innovative investment and operating models, brings additional power projects to financial close, and improves energy access across sub-Saharan Africa.
In 2023, Power Africa and Africa50 renewed their MOU, extending the partnership and including an ambitious goal of attracting power sector financing for 1,000KM of transmission line development through innovative investment platforms. The renewed partnership also emphasizes joint-collaboration on Africa50’s recently launched Alliance for Green Infrastructure in Africa (AGIA) initiative to catalyze green and climate resilient infrastructure through a combination of technical assistance and grant dissemination.
Africa50 is a leading infrastructure investment platform that helps bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent to positively impact the lives of millions of Africans.
The African Development Bank (AfDB) was the first development partner to announce its support for Power Africa with a commitment of $3 billion in 2013. Over the next five years, the AfDB invested over $4.5 billion to advance Power Africa’s goals, including contributions in the form of investments, support for policy reforms, advisory services, and financial guarantees. In 2018, Power Africa signed a Regional Development Objective Agreement (RDOAG) with the AfDB to formalize its close working relationship and provide support AfDB energy activities, including the Sustainable Energy Fund for Africa (SEFA), and by funding an embedded transaction advisor to facilitate AfDB’s energy investments.
In 2023, Power Africa and the AfDB signed an addendum to the agreement, extending the current partnership by an additional five years. The addendum also increases the funding ceiling of the RDOAG to $1 billion dollars, of which approximately $388 million has already been provided. The extension re-establishes the mutual goals between Power Africa and the AfDB to accelerate universal access to cleaner energy in Africa and strengthen regional integration and sustainable economic development congruent with the Power Africa Strategic Framework, the AfDB’s New Deal on Energy for Africa, and Sustainable Development Goal 7, which collectively aim to ensure access to affordable, reliable, sustainable, and modern energy for all.
The African Development Bank (AfDB) Group’s Mission is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction.
African Trade and Investment Development Insurance (ATIDI)
In 2017, the African Trade & Investment Development Insurance (ATIDI), formerly African Trade Insurance Agency (ATI), signed an MOU with Power Africa to formalize collaboration through its Regional Liquidity Support Facility (RLSF) and African Energy Guarantee Facility (AEGF), leverage financial guarantees and insurance products to facilitate power sector transactions, and support advocacy and capacity building. Under the MOU, ATI committed to developing 400 MW of energy generation.
In 2023, Power Africa and ATIDI renewed their MOU, extending ongoing cooperation in support of facilitating power sector transactions, providing capacity building and technical assistance to stakeholders, and identifying opportunities to collaborate in support of the RLSF and AEGF. ATIDI and Power Africa share a long-standing commitment to boosting a just and green energy transition, reducing energy poverty, and increasing access to affordable, reliable, and modern energy for all in sub-Saharan Africa.
ATIDI is a pan-African institution that provides political risk insurance to companies, investors, and lenders interested in doing business in Africa. ATIDI provides political risk and trade credit risk insurance products with the objective of reducing the business risk and cost of doing business in Africa. Its main goal is to help increase investments into its African member countries and two-way trade flows between Africa and the world. ATIDI facilitates exports, foreign direct investment into and trade flows within the continent.
Development Bank of Southern Africa (DBSA)
In 2015, the Development Bank of Southern Africa (DBSA) signed an MOU with Power Africa to support the planning and financing of priority power projects in countries of mutual interest in Sub-saharan Africa that would bring 3,000 MW of new energy online. DBSA is a state owned entity with the purpose of accelerating sustainable socio-economic development and improving the quality of life of the people of the Southern African Development Community (SADC) by driving financial and non-financial investments in the social and economic infrastructure sectors. DBSA prioritizes water, energy, transport and ICT as its key focus areas including social and economic infrastructure.
Eastern and Southern Africa Trade and Development Bank
The Eastern and Southern Africa Trade and Development Bank (TDB) and Power Africa signed an MOU on November 7, 2018, at the African Development Bank's African Investment Forum in Johannesburg. TDB is Power Africa's 18th development partner and plays a critical role in advancing private sector participation in Africa’s development through its dynamic lending portfolio. TDB was established in 1985 under the Treaty of 1981 that established the Common Market for Eastern and Southern Africa (COMESA) and for which TDB is the financial arm. TDB made a commitment in the MOU to increase its lending in the energy sector from 8% of its total portfolio to 20%, the equivalent of delivering an additional $400 million to the power sector.
Industrial Development Corporation of South Africa (IDC)
The Industrial Development Corporation of South Africa (IDC) is a national development finance institution set up to promote economic growth and industrial development. The institution is owned by the South African government under the supervision of the Economic Development Department.
United Nations Development Programme (UNDP)
On Tuesday, November 7th, USAID Power Africa and UNDP signed an MOU agreement to deepen collaboration between Power Africa and UNDP-SA to streamline Technical and Vocational Education and Training (TVET), support the expansion of mini-grid/off-grid electricity provision, and promote information-sharing in South Africa. The MOU outlines UNDP-SA and USAID’s intentions to, among other things, provide support to the USAID-funded South Africa Energy Programme (SAEP) to continue the work of UNDP’s “Advancing Inclusive Just Energy Transition in South Africa” resulting in the rollout of TVET training to Limpopo, across seven additional TVET colleges, and subsequent work placement. The MOU objectives include a just energy transition, off-grid energy development, energy access to displaced populations, healthcare electrification, and empowering women and youth in the power sector.
As the United Nations lead agency on international development, UNDP works in 170 countries and territories to eradicate poverty and reduce inequality. We help countries to develop policies, leadership skills, partnering abilities, institutional capabilities, and to build resilience to achieve the Sustainable Development Goals. Our work is concentrated in three focus areas; sustainable development, democratic governance and peace building, and climate and disaster resilience.
Building on over six years of successful cooperation, the World Bank Group and USAID entered into a MOU in 2019 to catalyze mutual objectives in the energy sector in sub-Saharan Africa. These objectives include an investment of $5 billion U.S. dollars in the energy sector by 2024; adding 3.3 gigawatt-hours of energy storage financed by 2024; supporting 60 million new connections by 2030; adding 5,000 kilometers of transmission line infrastructure constructed or rehabilitated by 2030 and supporting 30,000 megawatts of new energy generation by 2030.
GOVERNMENT PARTNERS
The United States and Canada signed an MOU in 2016 to support the development of the energy sector in sub-Saharan Africa through Power Africa. The partnership enables the United States and Canada to deepen coordination on the implementation of commitments under the Africa Renewable Energy Initiative (AREI) including Canada’s pledge of $150 million as well as the U.S. investments under Power Africa. The partners work closely to support gender inclusive growth in the power sector and emphasizes supporting partner country ownership and collaboration.
USAID/Power Africa signed an MOU with its 20th Development Partner, the Government of Denmark, in September 2021 on the sidelines of the UN High Level Dialogue on Energy. Through the MOU, Power Africa and Denmark formally agree to deepen their engagement to: mobilize investment in renewable energy projects, with a focus on fragile states; increase access to finance and training for African entrepreneurs, especially women; and support the next generation of energy solutions in innovative areas, such as energy storage and fintech. These efforts will ultimately increase access to clean energy and reduce carbon emissions in energy-poor and emerging economies in sub-Saharan Africa, and further progress toward achieving Sustainable Development Goal 7 and the Paris Climate Agreement.
During the Annual Meetings of the World Bank Group and International Monetary Fund on October 14, 2022, Power Africa and the EU signed a new MOU superseding their original MOU agreement signed in 2015. By highlighting increased cooperation between the Partnership for Global Infrastructure Investment (PGII) and the EU’s Global Gateway, this MOU seeks to accelerate a just and green energy transition, promote relevant market and regulatory reforms to ensure robust decarbonisation efforts, reduce energy poverty, and increase access to affordable, reliable and modern energy for all in Sub-Saharan Africa. In this new MOU, the EU included an overall financial commitment of $3 billion as part of the EU’s development assistance program for energy in Africa.
MOU with EU (2015)
Renewed MOU with EU (2022)
The United States signed a Declaration of Intent with France in November 2016 to deepen cooperation in Sub-Saharan Africa’s energy sector through the Power Africa initiative. The MOU outlines areas of mutual support to integrate electrification planning and advance grid extension, mini-grids, and off-grid solutions; identify opportunities to mobilize investment from their respective governments and private sector partners; and to fund a total of $2.15 billion in support of Power Africa through the Africa Renewable Energy Initiative (AREI).
DOI with France (English)
DOI with France (French)
In 2017, the United States and Israel entered into an MOU to advance the common goals of reducing energy poverty and increasing access to energy in sub-Saharan Africa through innovative partnerships between private enterprise, African governments, and foreign assistance. Through this partnership, the United States and Israel collaborate on strengthening economic ties and cooperation with African countries, including improving access to finance and explore investment opportunities for U.S. and Israeli companies; deepen collaboration to expand electricity access; expanding on-grid renewable, and off-grid efforts to extend energy across sub-Saharan Africa; and encouraging new projects involving Israeli and U.S. companies throughout the African continent. In addition, Israel has committed to bring 300 MW of new power generation to financial close through projects carried out by its private sector.
On September 20, 2023, USAID/Power Africa Deputy Coordinator Irons signed a Memorandum of Cooperation (MOC) renewal with the Government of Japan (GOJ) intended to promote further collaboration and advance the sustainable development of the energy sector at the country and regional level in sub-Saharan Africa. The partnership leverages Japan’s expertise in distribution and transmission through a commitment to develop an additional 500 km of transmission lines by 2030. The MOC builds on over six years of successful cooperation between GOJ and the United States Government (USG) which began under the first MOC signed in August 2016 at TICAD 6 in Nairobi, Kenya.
On September 14, 2023 USAID/Power Africa signed an MOU renewal with the Republic of Korea (ROK) at the Korea-Africa Economic Conference (KOAFEC) in Busan, Korea to extend the ROK-USG energy partnership. In this wide-ranging MOU, the ROK committed to matching its original target of a $1 billion investment to advance power-sector infrastructure and construct 1,000 kilometers of transmission line from 2023 to 2030. The ROK and the USG aim to contribute their respective strengths, expertise, and resources to support one another's efforts to boost a just and green energy transition; reduce energy poverty; and increase access to affordable, reliable, and modern energy for all in SSA, per Sustainable Development Goal (SDG) 7.
Renewed MOU with Republic of Korea
At COP26 in November 2021, Power Africa and Norway's Ministry of Foreign Affairs (MFA) renewed their original MOU agreement signed in 2015 to collaborate on reducing energy poverty and increasing access to sustainable energy in Africa. Under the new agreement, Norway committed to generate an additional 2,000 MW of electricity through energy projects funded by its Development Finance Institution, Norfund. This is in addition to the 1,500 MW Norfund already generated and the approximately $150 million Norway spent annually over the previous six years to support sustainable energy enterprises in Africa. Through the MOU, Power Africa and Norway are committed to working together to support the development of hydropower and expand small-scale and off-grid efforts to extend renewable energy across sub-Saharan Africa; advance the development of power pools and facilitate regional power trade and integration; and improve environmental and social impact assessments for energy projects.
In 2015, Sweden became the first foreign government to officially support Power Africa by committing $1 billion USD over the next 10 years in the form of grants for distribution and transmission projects, as well as guarantees and loans to catalyze investments in the energy sector. Power Africa and Sida continue to work together to expand mini- and off grid solutions to extend renewable electricity across sub-Saharan Africa; improve energy efficiency as a means of making additional megawatts available; leverage financial guarantees to facilitate power sector transactions; and support Power Pools as well as other interventions to increase renewable energy power generation and access to power through regional integration.
United Kingdom's Foreign, Commonwealth & Development Office
In 2015, Power Africa formalized its relationship with the UK through its Department for International Development (DfID). The MOU committed DFID and Power Africa to work together to expand and leverage investments in clean energy; increase power generation and access to power through regional integration and support of power pools; expand decentralized and off-grid energy solutions including through the ‘Energy Africa’ campaign; advance the full participation of women in the energy sector; develop the geothermal energy sector through a regional approach; and strengthen donor coordination. Power Africa continues to work with the UK's new Foreign, Commonwealth and Development Office which was created from DFID and the Foreign Commonwealth Office in September 2020.
TECHNICAL AGENCIES
African Union Development Agency (previously New Partnership for Africa’s Development - NEPAD)
The 2014 MOU between the United States and the New Partnership for Africa's Development (NEPAD), a technical body of the Africa Union (AU), focuses on energy projects included in the Africa Power Vision — a list of regional or otherwise potentially transformational energy projects prioritized by the AU. AUDA is a pledge by African leaders based on a common vision to eradicate poverty and support Africa's sustainable growth and development through the promotion of regional and continental integration; halt the marginalization of Africa in global processes and enhance its full and beneficial integration into the global economy; and accelerate the empowerment of socially disadvantaged groups, such as women and children.
International Renewable Energy Agency
Recognizing their shared efforts to advance the energy sector in sub-Saharan Africa, the International Renewable Energy Agency (IRENA) and Power Africa signed an MOU in December 2015 that establishes a framework for enhancing renewable energy investment and growth, increasing access to electricity, and supporting IRENA’s Sustainable Energy Marketplace. IRENA is an intergovernmental organization headquartered in Abu Dhabi, United Arab Emirates, that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international co-operation, a center of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.
The Rocky Mountain Institute (RMI) and Power Africa established a new partnership through a memorandum of understanding to increase the successful implementation of locally led, distributed renewable energy projects by de-risking projects, supporting cost reductions, and facilitating access to finance for African renewable energy entrepreneurs and financial institutions across Power Africa’s network. RMI’s Africa Energy Programs, Energy Transition Academy (ETA), and Climate Finance Access Network (CFAN) initiatives will complement USAID's regional and partner programs. RMI provides innovative and curated capacity building, problem-solving, and program support to a variety of energy practitioners. RMI has a proven track record in promoting the deployment of renewable energy and advancing women in the energy sector across sub-Saharan Africa. RMI joins Power Africa as our 21st development partner.
RMI, founded as Rocky Mountain Institute, is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. RMI works in the world’s most critical geographies and engages businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50% by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing.
Since 2014, USAID and Sustainable Energy for All (SEforALL) have been working closely on the development of off-grid systems, regional power pools, and financial tools. In 2020, USAID and SEforALL will renew their partnership. SEforALL is a non-profit organization working with leaders in government, the private sector and civil society to drive further, faster action toward the achievement of Sustainable Development Goal 7 (SDG7), which calls for universal access to sustainable energy by 2030. Former U.N. Secretary-General Ban Ki-moon launched SEforALL in September 2011 as a global initiative to mobilize action by these diverse actors in support of SDG7’s three core objectives: ensuring universal access to modern energy services; doubling the share of renewable energy in the global energy mix; and doubling the global rate of improvement in energy efficiency. SEforALL brings multiple stakeholders -- governments, development banks, the private sector, investors, civil society, and international institutions -- together under a single umbrella.