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Infrastructure critical to growth, but continent hampered by limited stocks and high costs Africa’s economic geography complicates infrastructure development Power is by far Africa’s largest infrastructure challenge
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100% 80% 60% 40% 20% Funding gap $31 Efficiency gap $17 Increasing cost recovery $4.7 Improving operational efficiency $7.5 Spending budgeted resources $1.9 Prioritizing public spending $3.3 Existing spending $45 0% Spending needs $93 All figures in US$ billion a year
How much to expect from private sector? Private finance limited to certain niches Significant investment in ICT ($28bn), thermal power generation ($3bn) and ports ($3bn) Minimal appetite for power and water utilities, rails and roads Makes significant contribution across country types Private management helps narrow efficiency gap Positive impact on railroads, power and water utilities
Increased funding Enhanced efficiency Innovative approaches Technology adaptations are all needed to redress Africa’s infrastructure deficit
Hydro power, developed responsibly and regionally, can have a big impact Enables energy mix to be cleaner at reasonable cost. Savings of US$2 billion a year (and 70 million tons of carbon) achievable from shifting to large scale hydro-power via regional trade Requires extraordinary political and economic cooperation among countries
Geothermal Power Development Kenya is scaling up, demonstrating that this can be done Current geothermal capacity is 110 MW --projected to more than double in the next 5 years The countries in the Rift Valley all have potential. Current efforts on to promote exploration and financing to realize the potential through private sector
Developing off-grid Solar Market Sustainable Solar Market Program is a delivery model that addresses African challenges high initial cost low affordability limited access to credit low population density and hence high transaction costs. Packaging tools to meet these specific constraints so as to attract private sector. SSMP being tested in Tanzania, Zambia and Liberia.
Energy Efficient Lighting Programs Rwanda: Distributed 400,000 CFL in exchange for incandescent bulbs Reduces peak demand by 7-10 MW Bundled with access program – 250,000 households connected and given CFLs with connection Energy savings are captured in Rwanda’s first carbon finance transaction CFL exchange programs are also underway in Ethiopia and Uganda
Catalyzing Markets for Modern Lighting The Lighting Africa Initiative Supports the private sector to develop, accelerate, and sustain the market for modern off-grid lighting technologies tailored to the needs of African consumers. Lighting Africa works closely with a range of key stakeholders along the supply chain and beyond, necessary for successful market formation Public goods in the form of market research, consumer preferences, quality standards and retailing strategies are developed and disseminated to promote entrepreneurs. Check out: