AfDB to catalyze private sector investments into Africa's energy sector
Xinhua, September 22, 2016 Adjust font size:
Africa Development Bank (AfDB) plans to catalyze private sector investments into Africa's energy sector, officials said on Thursday.
Gabriel Negatu, AfDB's Regional Director in charge of the East African Regional Centre, told an energy forum in Nairobi that through a combination of grants, loans and guarantees, the bank will make it more attractive for the energy sector to attract private sector funding.
"The idea is to financially de-risk Africa's energy sector by putting in the first capital in energy projects, so that the private sector has confidence in the energy sector," said Negatu during the East African Power Industry Convention.
The two-day conference brings over 200 participants from over 30 countries to review ways to boost energy production in East Africa.
The pan-Africa bank is in the forefront of helping the continent achieve universal power access to electricity by 2025.
Negatu said approximately 650 million Africans do not have access to electricity and therefore use biomass and kerosene to light up their homes.
"These forms of energy have a heavy toll on the environment due to heavy pollution and deforestation," he said.
In Kenya, AfDB has already sunk 100 million U.S. dollars to purchase three rigs for geothermal steam exploration.
The bank will also help Africa nations reform their energy laws in order to provide a conducive environment for private sector investments. Endit