Citibank to source $2.5bn to ‘Power Africa’

Citibank has pledged to source $2.5 billion in incremental capital to improve access to electricity for millions of people across Africa as part of the ‘Power Africa’ initiative.

Power Africa is a multi-stakeholder partnership between the US government, governments of several African countries and other public and private sector entities, working to accelerate investment in Africa’s power sector over the next several years.

Citi will also leverage its financing expertise in renewable energy to encourage the adoption and implementation of the appropriate technologies for specific markets.

The bank will work with key stakeholders in local capital markets to introduce innovative debt securities and to enhance financial infrastructure.

Accelerating the development of local capital markets will mobilise domestic savings and attract greater international financial resources to the power sector in Africa.

By deploying its systems and technology to enhance the payment and collection capabilities of the various providers in the “Power Africa” markets, Citi aims to increase efficiency and transparency along the entire supply chain.

Jim Cowles, CEO of Citi for the Europe, the Middle East and Africa region, said, “We are proud to be a partner in this phenomenal project, an initiative to double the number of people who have access to electricity across Africa. Citi has a unique footprint in Africa and a commitment to enabling progress on the continent through our technical expertise, financing and risk mitigation tools.”

Citi operates in over 40 countries in Africa with offices in 16 countries, including key markets such as Nigeria, Ghana, Kenya, Tanzania and South Africa. Over the past two years, Citi has enabled over $1.5 billion in funding for the power sector in Africa.