USAID, Power Africa, African Development Bank broaden cooperation on fighting energy poverty and climate change in Africa

The United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, and the African Development Bank, have signed an extension and expansion of their existing Regional Development Objectives Agreement (RDOAG) on the margins of the Africa Energy Forum in Nairobi.

The move deepens the strategic partnership and expands the basis for cooperation in developing innovative and sustainable solutions to combat energy poverty, climate change, and strengthen energy systems in sub-Saharan Africa.

Specifically, the agreement, targets ending energy poverty by 2030; accelerating the Just Energy Transition in Africa; and strengthening the enabling environment for clean energy.

The five-year extension, running through September 2028, paves the way for up to $500 million in future contributions from the United States to further RDOAG’s objectives. To date, about $388 million has been channeled through the RDOAG, including direct support for the African Development Bank-managed Sustainable Energy Fund for Africa (SEFA) and the Bank’s Desert to Power initiative.

The agreement will also enable the partners to provide financial, technical, and operational support to public, private, civil society and other stakeholders, including grants, equity and debt investments, and risk mitigation measures.

During the signing at the Africa Energy Forum, Power Africa’s Acting Coordinator David Thompson highlighted the role of partnerships in accelerating and sustaining the just energy transition. He said: “The importance of our partnership with the AfDB, as evidenced through this agreement, in achieving our shared ambition of universal access to energy cannot be overemphasized. We effectively leverage one another's strengths to accomplish much more jointly than either institution could do on its own.”

Dr. Daniel Schroth, African Development Bank Director of Renewable Energy and Energy Efficiency, who signed the extension on behalf of the Bank’s Vice President for Power, Energy, Climate and Green Growth, echoed the importance of partnerships. “Power Africa is a long-standing and key partner of the African Development Bank, and a central pillar of our collaboration focuses on mobilizing increased private sector investments, which are quintessential to achieving our joint objectives of universal access to energy and a just energy transition in Africa,” Schroth said.

Activities executed under the expanded agreement will align with the Power Africa Strategic Framework, the Bank Group’s New Deal on Energy for Africa, and Sustainable Development Goal 7, all aiming to secure access to affordable, reliable, sustainable, and modern energy for all.

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