Adeshina pushes AfDB new deal on energy for Africa at WEF 2016

The African Development Bank (AfDB) is pushing its New Deal on Energy for Africa aimed at providing a platform for coordinated action amongst private and public entities for innovative financing towards alleviating Africa’s energy challenges at the on-going World Economic Forum in Kenya.

Tagged “New Deal on Energy for Africa,” it seeks collaboration with governments, the private sector, and bilateral and multilateral energy sector initiatives to develop a Transformative Partnership on Energy for Africa – a platform for public-private partnerships for innovative financing in Africa’s energy sector.

AfDB President Akinwunmi Adeshina gave presentations on New Deal on Energy in Africa and Job creation for Africa’s youth, which are the bank’s key focus areas at the WEF.

According to the AfDB the plan will focuses on five key principles: raising aspirations to solve Africa’s energy challenges; establishing a Transformative Partnership on Energy for Africa; mobilizing domestic and international capital for innovative financing in Africa’s energy sector.

It is also be directed at supporting African governments in strengthening energy policy, regulation and sector governance; and increasing the African Development Bank’s investments in energy and climate financing.

“Building on the five principles, the development of the New Deal has focused on identifying and overcoming the obstacles to universal access. To make major strides towards delivering these programmes, the New Deal addresses seven strategic themes, each of which is supported by a series of flagship programmes that the Bank will launch,” said the Bank.

The bank aims to achieve this policy by setting up the right enabling environment by advising and supporting governments on setting up efficient sector regulation and governance, focusing on cost reflective tariffs and building counter-parties and ensuring appropriate allocation.

Utility companies will be enabled for success in the plan by getting technical assistance to utilities for restructuring through privatization and concessions and operating improvement

Also the bank plans to aggregate project development capital and channel it through highly capable private sector organisations which are involved in world-class project development, including private sector finance and legal institutions.

Other measures to be adopted include increasing the funding pool, Increasing the availability of financing to promote the development of both on- and off-grid project organisations, Identifying major regional projects, particularly those with regional interconnections included in their mandate, and systematically driving them to completion and a systematic implementation of full-country turnaround programmes.

The bank says it will coordinate major development institutions to launch end-to-end energy system turnarounds, in close collaboration with the Head of State, Minister of Energy and Minister of Finance in each country.

“These programmes will include energy system planning, restructuring of the national regulatory environments, matching donors to targeted interventions, and bringing in the private sector to drive development of capacity and connections,” stated the AfDB.

 

ISAAC ANYAOGU