There is no doubt American private sector in general and the energy sector players in particular have shown greater interest and are cautiously optimistic about Power Africa. They have responded positively and have expressed the desire to take a second look at business opportunities in Africa, not only in the energy but in other areas.
However, the skeptics were not going to have none of the kumbaya talk without raising doubts about the security of their investments and all nature of risks associated with doing business in Africa. Then suddenly a Congolese student ask why the Democratic Republic of Congo, the home of the Grand Inga dam that has the capacity to produce up to 400,000 MW, over twice the power produced by the Three Gorges Dam in China.
This brings me to another comment from an active player in the African energy scene who wondered why Ethiopia was on the list in the first place – a country he described as a Marxist-Leninist state that espouses central planning of the economy and has persistently rebuffed any and all proposals from IPPs.
Both questions point to the selection criteria employed by the Obama administration. What do Ethiopia, Liberia, Ghana, Tanzania, Nigeria and Kenya have in common. They are all emerging democracies, some with stronger credentials than others. But I think the more important factor they share in common is they are all strong partners with the U.S. on security matters, including Ethiopia.
National security guarantees national interest which trumps every consideration, every time. This is not particular to the U.S. but to every country on earth. The DRC will be a strong candidate in the next round provided the current program registers significant success that will allow for expansion of the program while it attracts more private equity investments, and Ethiopia will stay on as long as it continues to enjoy the status of being a close U.S. ally despite its politics.
Sidi Sanneh