The United States of America (US) has reaffirmed their commitment to Africa to partner on matters of conservation, climate adaptation and a just energy transition.
During the US-African Leaders Summit, held December 13-15 in Washington DC, the United States affirmed and expanded its partnerships with African governments, the private sector, civil society and philanthropic actors in recognition of the pivotal role African governments, institutions and peoples will play in addressing one of the greatest global challenges of our time – climate change. Many of the most vulnerable countries to climate change are in Africa, and the partnerships highlighted at the summit will be essential to bolstering their resilience.
At the United Nations Climate Meeting (COP27) in November 2022, President Biden announced US plans to provide over $150 million in new funding to accelerate the President’s Emergency Plan for Adaptation and Resilience (PREPARE). He emphasised the US commitment to help vulnerable countries and communities in Africa adapt to and manage the impacts of climate change as part of PREPARE’s work across the African continent.
$1.1 billion invested to Africa’s climate and just energy transition efforts
Since January 2021, the US has invested and plans to provide at least $1.1bn to support African-led efforts to support conservation, climate adaptation and a just energy transition. These include infrastructure projects under the Partnership for Global Infrastructure and Investment (PGII).
New initiatives include:
- Power Africa: In 2021, Power Africa-supported renewable energy projects helped prevent 6.2 million tons of CO2 emissions, the equivalent of burning 6.8 billionn pounds of coal. Since 2013, Power Africa has helped deliver access to electricity to nearly 165 million people across sub-Saharan Africa. The US has invested $193m to support Power Africa and plans to provide another $100m in FY 2023.
- US.-Africa Clean Tech Energy Network (CTEN): Power Africa, in partnership with Prosper Africa, launched CTEN, which connects US and African clean tech energy companies to market opportunities where project-ready technology can increase access to reliable electricity. CTEN aims to facilitate up to $350m in deals within the first five years.
- Health Electrification and Telecommunications Alliance (HETA): Power Africa intends to operationalise a $150m public- private partnership to electrify 10,000 health facilities in sub-Saharan Africa, bolstering sector resources to advance pandemic resilience and digital connectivity and decarbonise health-sector footprint.
- Growing Green Jobs for Women: Power Africa will launch a new initiative focused in Nigeria to advance women’s participation in the energy sector’s transition to clean energy technologies.
- Accelerating Women’s Empowerment in Energy (AWEE): The Department of State announced the Accelerating Women’s Empowerment in Energy (AWEE) project with an initial investment of $1m to help secure women’s economic futures through green jobs, with a focus on Kenya and South Africa. The programme will provide grants to local organisations to address barriers to women’s entry, promotion, and retention in the clean energy sector and increase women’s participation in the clean energy workforce.
- The Climate Action Infrastructure Facility (CAIF): USAID intends to contribute $10m in Africa to facilities and funds that bring private investors and donors together to support large-scale climate solutions. CAIF will enable USAID to contribute to facilities and funds that bring multiple investors and donors together to invest in large-scale climate solutions in emerging and frontier markets.
- US. International Development Finance Corporation (DFC) investments: Since January 2021, DFC has committed more than $438m to climate-linked projects in Africa to advance renewable energy and related supply chains, electric mobility, ecosystem conservation, food security and agriculture, energy efficiency, green hydrogen, and green finance. At the US-Africa Leaders Summit, DFC announced:
- $25 million loan to Golomoti JCM Solar Corporation Limited in Malawi for the first solar power plant in sub-Saharan Africa with a grid-connected battery energy storage system that will help ensure dependable supply and reduce frequent blackouts. This Power Africa project builds on a previous USTDA-funded feasibility study and indirect MCC support.
- In FY 2022, more than $180 million in funds providing renewable energy solutions, including the Mirova Gigaton Fund, SDG Investment Fund, the Africa Renewable Energy Fund II and the SunFunder Solar Energy Transformation Fund.
- Millennium Challenge Corporation (MCC) Compacts: The MCC Compacts signed earlier this year with the governments of Lesotho and Malawi provide over $110m of adaptation financing.
- United States Trade and Development Agency (USTDA) Investments: Bolstering Power Africa, USTDA is investing nearly $4m to support a just energy transition across several African countries. These investments include:
- Biomass power plant in Cote d’Ivoire: A $1m grant to help develop a 25MW biomass powerplant in Cote d’Ivoire. The plant will supply power to the Ivoirian national grid by transforming agricultural waste to clean energy, easing the carbon footprint of the country’s flourishing cotton sector.
- Clean hydroelectric power in Sierra Leone: $857,000 to support supplementary engineering and environmental studies for the implementation of a 27MW run-of-river hydroelectric plant in Sierra Leone.
