- The U.S. government has officially ended the Power Africa Initiative after 12 years, falling short of its goal to generate 30,000 MW of renewable energy for African communities.
- A 2019 report revealed that Power Africa overstated its achievements, with many projected energy deals never materialising and most new connections coming from handheld solar lanterns.
- Moving forward, African nations may explore alternative funding, private-sector partnerships, and local policies to achieve their energy goals with less reliance on external aid.
The U.S. government officially ended the Power Africa Initiative, which President Obama launched in 2013. The programme aimed to generate 30,000 MW of renewable energy for underserved African communities but failed to meet its goals.
Power Africa initially operated as a five-year project, with the U.S. committing $7 billion. The Export-Import Bank contributed $5 billion, OPIC added $1.5 billion, and USAID provided $285 million. The African Development Bank pledged $3 billion. The initiative partnered with Tanzania, Kenya, Ethiopia, Ghana, Nigeria, and Liberia, alongside companies like General Electric, Heirs Holdings, and Husk Power Systems.
2015 Power Africa secured over $20 billion in private-sector commitments. The Electrify Africa Act, passed in 2016, boosted U.S. support for energy expansion in Africa.
After twelve years, many still debate Power Africa’s impact. While General Electric delivered equipment for 600 MW at power plants in Ghana, other projects struggled. Regulatory issues forced Husk Power Systems to shut down in Tanzania and focus on Nigeria and the Democratic Republic of Congo.
Power Africa’s final significant contribution to Nigeria involved a $75 million technical assistance programme with the Ministry of Power. Despite this, many still question the initiative’s overall impact on the country.
Inflated Successes, Unrealized Goals
Power Africa often exaggerated its achievements in discussions on African energy. A 2019 U.S. Inspector General report revealed significant gaps in data accuracy, with many claimed milestones stemming from future projections that never happened.
For instance, Power Africa announced in 2017 that it was on track to add 30,000 MW by 2030, but these figures relied on incomplete deals. The report also noted that 80% of the 10.6 million electricity connections claimed by Power Africa in 2017 came from handheld solar lanterns, not from actual grid-based power.
Power Africa changed its method of counting connections several times, which led to inflated results. In Nigeria, the absence of a reliable data verification system made it hard to confirm the programme’s successes.
Mixed Reactions to the End
African energy stakeholders reacted differently to Power Africa’s closure. Some credited the programme with raising awareness of energy challenges, while others criticized its limited results.
NJ Ayuk, Executive Chairman of the African Energy Chamber, strongly criticised Power Africa. “Power Africa has been a failure from Day 1. They focused on renewables but didn’t invest much. They did studies and workshops, and Africans received very little.”
What’s Next for Africa’s Energy Future?
With Power Africa over, many wonder what’s next for Africa’s energy ambitions. Although the programme didn’t entirely succeed, it highlighted the urgent need for sustainable energy solutions.
Moving forward, African nations may look to alternative funding models, private-sector partnerships, and local policies to drive energy expansion. Whether these new approaches will succeed remains uncertain, but Africa’s energy future will depend on its strategies rather than external aid.