News24

Obama to unveil African power initiative

2013-06-30 09:02

Johannesburg - Pointing to Africa's crippling lack of electrical power, US President Barack Obama is due to announce on Sunday a $7bn initiative over five years to double access to power in sub-Saharan Africa.

"We see this as the next phase in our development strategy and a real focal point in the president's agenda going forward," deputy national security adviser Ben Rhodes told reporters travelling with the president.

Obama is midway through a three-country tour of Africa and is due to give what aides bill as his fullest description of his vision for the US relationship with the continent on Sunday.

The president has chosen historically resonant locations for the address, and is due to speak at the University of Cape Town after touring the prison on Robben Island.

Robert F Kennedy's 1966 speech at the university linked the struggles against apartheid and the US civil rights movement and was seen as giving encouragement to the movement, while Robben Island is where anti-apartheid icon Nelson Mandela was imprisoned for 18 of his 27 years in jail.

Movements of change

The president will cite South Africa's long struggle to defeat apartheid and the US civil rights movement's success in overcoming racial inequality as models of movements that brought about change in the face of daunting obstacles, aides said.

He will call on young Africans to summon similar energy to complete the work of those movements and to firmly establish economic growth, democratic government, and stable societies across the continent.

Obama has been faulted for lacking a grand programme to benefit Africa like the HIV/Aids initiative launched by President George W Bush or the broad reductions of trade barriers achieved by President Bill Clinton.

Many Africans have been disappointed at what they see as Obama's hands-off approach to the continent, noting that his first extended trip the continent has not come until his second term in office despite his African ancestry. Obama's father was a native of Kenya.

The president's aides say he has been held back by the need to wind down two wars and to right the US economy after the worst economic downturn since the Great Depression.

Despite severe US budget constraints, the power initiative could provide Obama with just such a signature programme.

'Continent of darkness'

Experts agree that the lack of electricity is a tremendous hindrance to Africa's advancement.

"Africa is largely a continent of darkness by night," said an official at a multilateral agency who spoke on condition of anonymity. "Every which way you look at this, Africa is behind the curve and pays more."

Roughly two-thirds of sub-Saharan Africa lacks power, a level that rises as high as 85% in rural areas, White House aide Gayle Smith said.

Lack of power inhibits business investment, prevents children from studying after dark, and makes it harder to keep vaccines from spoiling in rural areas, she said.

The United States will initially work with Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania to develop electric power generation, officials said. It will also co-operate with Uganda and Mozambique on oil and gas management.

The programme will draw on a range of US government agencies to achieve its goals. For example, the U.S. Overseas Private Investment Corp will commit as much as $1.5bn in finance and insurance to help U.S. companies manage the risks associated with the projects.

Similarly, the US Export-Import Bank will make up to $5bn available to support US exports to develop power projects, the officials said.

Africa's economic potential

The private sector will also be involved. Officials said General Electric Co has committed to power generation projects in Tanzania and Ghana, officials added.

The president's trip has taken him to Senegal and South Africa and will wind up in Tanzania on Monday and Tuesday. Although concerns over the ailing health of anti-apartheid hero Mandela have overshadowed much of the trip, the president has sounded the theme of Africa's economic potential at every stop.

In keeping with that emphasis, Obama will also announce that he plans to hold a summit of sub-Saharan African leaders in Washington next year.

"It's something other countries have done," Rhodes said. "What we want to do is continue the kind of high-level engagement we've had on this trip."

Comments
  • Nathan Lombard - 2013-06-30 09:15

    Hmmmm. Apparently my comment was deemed inappropriate. Will try saying the opposite. This money will be well invested, not stolen, and not used to fuel the gravy train.

  • Marz Smith - 2013-06-30 09:18

    This is good. More countries would start investing in South-Africa and help boost the rand. Quite funny, We have A small military base on the school grounds next to us. Took me 15 minutes to drive to the corner shop and have plenty of military aircraft flying up and down. Police on every single corner.

  • Martin Williams - 2013-06-30 09:24

    WTF? US is bankrupt. This is like the blind leading the blind.

      IAnon Ym - 2013-06-30 09:39

      HeHe - perhaps Obama is a bigger BS'ter than ZumZum, though the colour seems to match!

      Deon de Lange - 2013-06-30 10:40

      You're only bankrupt when your bank says so. And Obama's bank (China) has not yet said so.

  • Joseph Lefa Sobuthongo - 2013-06-30 09:35

    what a good initiative by the U.S PRESIDENT AND THE U.S GOVERNMENT,AS CITIZENS WE HAVE TO ACKNOWLEDGE SUCH INITIATIVES BUT WE ALL KNOW THAT THESE COUNTRIES COME TO AFRICA ONLY TO EXPLOIT OUR RESOURCES AND OUR UNDER-PRIVILAGED PEOPLE. AFTER ALL HE HAS SAID IT HIMSELF,ITS TIME FOR CHANGE AND LETS ALL SUPPORT SUCH INITIATIVES ON THE VITUE TO BENEFIT OUR UNDER-DEVELOPED SOCIETIES,ITS TIME WE USE OUR OWN RESOURCES TO BENEFIT OUR COURSE. LETS ALL RALLY BEHIND ACADEMIC EXCELLENCY AS IT IS OUR ONLY HOPE FOR ECONOMIC,POLITICAL AND SOCIAL CHANGE AND COHESION.

      Deon de Lange - 2013-06-30 10:38

      No need to shout.

  • Jacqui Daane Van Rensburg - 2013-06-30 11:46

    We see this as a next phase in competing with the Chinese would have been a more sincere answer. We all know that the growing Chinese influence in Africa, and elsewhere, is a thorn in America's side.

      kevin.brett - 2013-06-30 12:05

      I like this thought. There is always something in it for America, otherwise they wouldn't help. No such thing as a free lunch nor a debt forgotten. Take my money and my skilled people, I don't want anything back. Yes, believable. Kind of like old school mob tactics on a worldly scale.

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