Momentum gathering in Power Africa initiative across Africa

JOHANNESBURG, South-Africa, August 6, 2014/ -- Standard Bank Group Africa’s largest lender by assets, has renewed its commitment to the Power Africa Initiative, a multi-stakeholder project driven by US President Barack Obama, which aims to double access to power in Africa by significantly accelerating investment in the sector over the next five years. The US government has committed more than US$7 billion dollars in financial support to Power Africa over five years.

(from left to right) Dr Donald Kaberuka President of AfDB, David Mark Rubenstein co-founder and co-chief executive officer of The Carlyle Group and Mr Sim Tshabalala, Chief Executive of Standard Bank Group, during the panel discussion at the African Leaders Business Forum

 Power Africa aims to add more than 10 000 megawatts of cleaner, more efficient electricity generating capacity, and in the process electrifying at least 20 million new households and commercial entities with on-grid, mini-grid, and off-grid solutions.  The six initial partner countries - Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania - have set ambitious goals to boost their power generating capacity with the ultimate aim of enhancing energy security, decreasing poverty and fostering economic growth.

“We are seeing an increasing pipeline of power projects across sub-Saharan Africa,” said Mr Sim Tshabalala, Chief Executive of Standard Bank Group. “In 2013 we committed to arrange funding of at least $150m of debt in the near term across the Power Africa countries, while more recently that amount has risen to over $400m, principally in Kenya and Nigeria, with smaller transactions in Ghana and Tanzania.”

Standard Bank is using its extensive balance sheet and on-the-ground presence across 20 markets across sub Saharan Africa to help finance projects under the Power Africa initiative while at the same time actively leading the policy reform process required to facilitate increased private sector investment in Africa’s power sector. The bank expects more than $1bn in commercial projects to be realised across the six Power Africa partner countries by 2018, and as much as $5bn when one includes the rest of sub-Saharan Africa.

“Standard Bank will strive to arrange or underwrite at least half of the debt required for these projects,” said Mr Tshabalala. “As such, our commitment to Power Africa is to help fund an additional $600m of debt in the Power Africa countries through 2018, taking our total since joining the initiative a year ago to $1bn, and another $2bn across the rest of sub-Saharan Africa over the same timescale.”

The Ghana Power Compact (GPC) is the largest US Government transaction to date under the Power Africa banner. The GPC takes a system-wide approach to Ghana’s energy challenges with six projects across three areas: distribution, generation and access to energy.

The GPC also supports Ghana’s efforts to mitigate climate change by funding major energy-efficiency initiatives and improving the investment climate for renewable energy. At the heart of the GPC is a strong commitment from the Government of Ghana to change the laws and regulations needed to transform its power sector and put it on a path to profitability and sustainability.

The Millennium Challenge Corporation (MCC) will invest up to $498m over the next five years, to support the transformation of Ghana’s energy sector, helping the country provide a safe, reliable source of power to households and businesses. The Government of Ghana will contribute an additional $37m, bringing the total investment to $535m. This initial investment is expected to catalyse at least $4.6bn in additional private sector energy investment and activity from American firms in the coming years.

“Ghana is one of Africa’s most dynamic and exciting economies and the GPC will make a significant contribution towards putting the country on a sustainable long-term economic growth path,” said Mr Tshabalala. “Standard Bank will use its presence in Ghana and the rest of the continent to further support the Power Africa Initiative as well as other power projects across the continent.”

CNN'S Richard Quest ;President Uhuru Kenyatta's Interview Video !

Richard Quest seems to capture the Kenyan President Uhuru Kenyatta thoughts in a coincise manner in this interview.There's more to it than simply peddling the mantra that Terrorism is a global threat.Specifically i find  President Uhuru on point when he points that "Travel Advisories"  following specific threats  are ill advised and work against international corporation. Think of it such travel advisories by Western States amount to scoring an own goal and giving terrorist the power and effect they so desire.Interesting interview by Richard Quest during the Ongoing Africa /United States of America Summit!

You can watch the video UHURU KENYATTA CNN INTERVIEW 
 

Able Wireless: Why Government(Communications Authority)Should Enable Rather Than Disable Local Entrepreneurship !

Its hardly two months since the Government re branded the statutory regulatory body  Communications Commission of Kenya to the Communications Authority of Kenya. The move was hailed as "a new dawn" for in the ICT sector in Kenya. At the Launch His Excellency the President stated and i quote  “In establishing an independent regulator, we gather to mark a new beginning for the Information and Communications Technology sector and indeed for the whole Nation”As with any other statutory body i am a bit apprehensive and pessimistic as to whether Kenyans and foreign investors are experiencing a new dawn with regards to service delivery.Case in point :The Able Wireless Company.

A lot of verbal pep talk has been made about vision 2030, empowering the youth, making it ideal for local investors to get an enabling environment with little legal impediments ...etc.But time and again you read of local start ups by vibrant young men being hounded and frustrated left right center in Government  offices trying to get regulatory approvals and that is repeated time and again and you wonder is it all talk and little or no action with our systems?Do we ever take audit of what our leaders say and what happens in  practice shortly thereafter?

 Speaking of which note the tone of frustration and economic sabotage that has faced Able Wireless( a company founded by a young Kenyan entrepreneur) in their quest to roll out their services due to regulatory impediments ...and i quote from their blog

But in Kenya, despite the push to help enable youth driven businesses, The Regulatory atmosphere has failed to adapt. Come August 2nd 2014, we will have spent a year seeking Regulatory Approval to start operating in Kenya. This Regulatory overhead means that every month, we have to meet financial commitments to our suppliers per contractual agreements without having earned a single shilling. August 1st marks the 2nd time The Regulator will have delayed our launch owing to their own internal processes. Despite us being gazetted on March 21st 2014, we only know that the process is still ongoing, and approval is due soon, but this is proving to be a protracted endeavor. Two months ago, it seemed impossible that we would be forced to wait longer than August. We were wrong.

Able Wireless TopBox

Able Wireless is a Company that seeks to revolutionize content delivery and connectivity in the local market by streaming Video On Demand (VOD) content and other services at an all time low fee of Kshs 500 per month(See the video interview  explaining the service)The founder is a pioneer blogger and techie  Kahenya Kamunyu a brilliant chap and a friend. Therefore when i read his blog post on 31 July, 2014 detailing the  bottlenecks he is facing as he tries to realize his venture and create value for Kenyans. I had to throw in my support and highlight that its time we changed our modus operandi if we expect to improve the collective livelihoods of fellow Kenyans.

 
Its imperative to note that often it may not be the policy of a Government body to stifle investment but individually Government staff have a responsibility to be thrifty and hardworking in their duties and service delivery.Corruption ,bureaucracy ,tribalism and other malignant  practices are a shot at ones own foot;self defeatist at best.Once an investor meets the required statutory requirements thresh-hold , the Licenses  should be issued promptly.To keep people visiting your offices as if that is their daily occupation is ethically, economically and morally unsound.

I hope someone from the "newly" re branded Communications Authority of Kenya picks up on this issue and grant s Able Wireless the opportunity to start providing services  to Kenya and enable us to have a cheaper local alternative to the foreign based content providers that  have dominated the entertainment industry in Kenya for a considerable period.

To Kahenya Kamunyu....don't let that stop you soldier on, sky is the limit!