A Call to Action for Off-Grid Energy in Africa

The President launched Power Africa in Africa almost one year ago to double access to power in Sub-Saharan Africa. With a private sector orientation and transaction focus, Power Africa has already catalyzed more than 35 private sector partners to commit more than $14 billion for energy investment in Africa. Their engagement is critical and emblematic of the National Impact Initiative that seeks to spread market-based models and private investment to create jobs and economic value while solving social and environmental problems.

Recognizing that Power Africa cannot achieve its energy access goals through large generation projects alone, the Obama Administration is exploring opportunities to unlock further investment in and growth of small-scale energy systems at the household and village level. Toward that goal, the Administration hosted two events in the last week – one here at the White House and a second roundtable at Stanford University in Palo Alto, California – to engage nearly 60 impact investors and venture philanthropists interested in small-scale energy investment in Africa.

Consistent with the core modus operandi of Power Africa to date, this new effort will leverage the combined capabilities of 12 U.S. government agencies to deploy the “glue and grease” needed to assist private sector transactions to close. It will also build upon early Power Africa successes, such as:

• Off-Grid Electric – the pioneering household solar services company initially supported by early-stage grant funding from the Development Innovation Ventures and the U.S.-Africa Clean Energy Finance Initiative, an innovative finance program developed by the Overseas Private Investment Corporation, the U.S. Department of State, the U.S. Trade Development Agency, and the U.S. Agency for International Development (USAID)
• Kiwira River Hydro – a 10MW run-of-river hydropower project in Tanzania that received a USAID Development Credit Authority credit guarantee that reduced its financing costs and paved the way to financial close

With input from individual investors, investment funds, single family offices, and large foundations seeding and scaling innovative off-grid business models, this new effort will also develop new capabilities to strengthen the enabling environment and catalyze further private sector investment into off-grid and mini-grid energy solutions. 

We know that great ideas and impactful small scale energy investments aren’t limited to the people that joined us at the recent events. Do the activities of your investment fund or foundation align with this new strategy under the President’s Power Africa initiative? Are you actively pursuing small-scale energy deals in the six Power Africa countries that could use a little glue or grease? Do you have thoughts on steps the public sector can take to further unlock investment and growth?

If you have such thoughts, please email us at innovation@who.eop.gov. Working together, we can increase access to energy, eradicate extreme poverty, and achieve sustained, inclusive economic growth.