Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

How to Profit From Africa’s $300 Billion Electricity Boom

Companies / Electricity Jul 05, 2013 - 12:25 PM GMT

By: Money_Morning

Companies

Greg Madison writes: President Obama is wrapping up a wide-ranging trip to Africa this week, one in which he talked about everything from human rights, the triumphs of Nelson Mandela, a return to growth in Zimbabwe and the prospects of an African renaissance.

But it was his comments about access to electricity that should have drawn the most attention. The President is setting the stage for a huge leap in Africa's standard of living - and most people probably didn't notice.


As we've reported before, there are plenty of reasons to be bullish here at the start of the African Century. It's true that, all across the continent:

Poverty rates are falling
Conflicts are winding down
Incomes are rising
Economic growth is accelerating
The middle class is growing, and
Investment is increasing

But there are some key infrastructure necessities that are still lacking. Chief among those is access to electricity.

The Need Is Painfully Clear
Earlier this week in Cape Town, South Africa, President Obama unveiled his "Power Africa" initiative, which sets the bar at doubling access to power in parts of Africa. At the same time, American power and energy management companies will see benefits, too.

Lack of power is a huge problem in countries all over Africa, even where economies are growing. The Lancet reports that 3.5 million Africans die every year due to indoor pollution, more than malaria and HIV/AIDS combined. This pollution comes from wood smoke, petroleum fumes, and other sources, because of a dearth of power-generated heat and light.

The Washington Post's Wonkblog
, who had stringers covering Obama's tour in Dar es Salaam, Tanzania, noted that the deluxe Hotel Kilimanjaro where they were staying had frequent blackouts. Wonkblog reported that a small contingent of reporters was trapped in an elevator in the otherwise ritzy hotel as the power cut out.

The brief pratfall underscored the President's point perfectly. It couldn't have been scripted any better than that. Africa needs power, and it needs lots of it in short order to continue its economic growth.
Money Well Spent

To that end, he promised nearly $7 billion over the next five years to governments in Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania. This money will go toward enhancing electricity access to some 20 million households in these countries and, what's more, some of the money will go to helping emerging energy producers like Angola and Mozambique develop their energy export sectors.

These pledged funds will come from the various government-backed U.S. Development Banks in stages. The funds will be used to attract American companies to contract with the various African countries in need of development.

The President is also stumping for American companies to get involved directly, lining up close to $10 billion in private sector commitments. General Electric Company (NYSE:GE) is the biggest player on board so far. But GE is only the first among the heavy hitters lining up to power Africa.

According to the White House statement on "Power Africa," the company has committed to bringing 5,000 megawatts of affordable energy to Tanzania and Ghana. In the latter country, GE has inked a deal to build a 1,000 megawatt plant already.

The power to actually run this new plant will be supplied by Anadarko Petroleum Corporation (NYSE:APC), which has just contracted to operate the struggling Jubilee offshore oil field off the coast of Ghana. Ghanaian companies have struggled to operate the field efficiently, and will be taking a back seat, watch-and-learn position to Anadarko on this.

The Race Is On
The United States is not alone in its desire to invest in Africa. In fact, as with many emerging markets, there's stiff competition to be the first in. Japan is financing a Sumitomo Corp (TYO:8053) 240 megawatt gas-fired plant in Tanzania, and China is spending $600 million to build a 400 megawatt hydroelectric facility. Netherlands-based Aldwych International, a private concern, is planning a wind farm in breezy Kenya. The race to power Africa - and profit from it - is most assuredly on.

But there's plenty of business to do in Africa. The White House estimates that some $300 billion will be needed to meet the goal of fully powering sub-Saharan Africa.

More than Just Light And Power

As in a case of what's good for the goose, is good for gander, the effort will yield benefits for both the African countries and American businesses. American know-how will be deployed on a large scale. In addition to the economic boost for America and Africa, American strategic interests will be very well-served by these investments.

When peoples' living standards rise, when more and more poor people come out of poverty, the danger of extremism and conflict diminishes in a real way. Al-Qaeda, for instance, has made significant inroads in Africa, as we're seeing in conflicts across Mali and Nigeria. We need to admit that they've beaten us to the punch in Africa in getting there first with the most power.

But the issue is far from settled. The United States has more to offer citizens of the region, with power, light, heat, jobs, economic development than Al-Qaeda does with all its killing, brutality, religious fundamentalism, and mindless destruction

But when these regions become developed, when their people become just a bit more hopeful, and a bit more secure, the dubious, the evil allure of extremist groups like Al-Qaeda loses quite a bit of power. In these terms, any investment the United States can make in Africa's build-out will pay big dividends.

Let us know what you think about #Obama's ambitious #Africa strategy. Can you see any benefit to investing in African energy infrastructure, or do you think we've got more pressing #foreignpolicy priorities. Follow us on Twitter, or drop us a line on our Facebook page.

Source :http://moneymorning.com/2013/07/03/heres-how-to-invest-in-africas-300-billion-electricity-boom/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules