Trade & Industry

US Discontinues Power Africa Initiative, Ends Over a Decade of Efforts to Expand Electricity in Africa

The US government has officially dismantled the Power Africa initiative, a program designed to expand electricity access across Africa, after over a decade of work, according to a report by Bloomberg News on Wednesday. The move marks the conclusion of a major effort launched by former President Barack Obama in 2013 to provide electricity to

US Discontinues Power Africa Initiative, Ends Over a Decade of Efforts to Expand Electricity in Africa

US Discontinues Power Africa Initiative, Ends Over a Decade of Efforts to Expand Electricity in Africa

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US Discontinues Power Africa Initiative, Ends Over a Decade of Efforts to Expand Electricity in Africa
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The US government has officially dismantled the Power Africa initiative, a program designed to expand electricity access across Africa, after over a decade of work, according to a report by Bloomberg News on Wednesday. The move marks the conclusion of a major effort launched by former President Barack Obama in 2013 to provide electricity to millions of African households.

Sources familiar with the decision revealed that nearly all of Power Africa’s programs are set to be terminated, and most of its staff have been laid off. However, some programs, particularly those aimed at fostering partnerships with US companies, might be preserved under different US government agencies, the report added.

Power Africa, which operated through the US Agency for International Development (USAID), was a significant part of the US’s foreign assistance to Africa. The initiative’s goal was to help provide reliable electricity to underserved regions, benefiting millions of people across the continent.

A State Department spokesperson confirmed that each program under Power Africa is undergoing a review, with the aim of restructuring assistance to align with US interests. “Programs that serve our nation’s interests will continue, but those that do not align with our national interests will be discontinued,” an official stated.

The decision to dismantle Power Africa is part of a broader effort under the Trump administration to cut federal government spending, with particular scrutiny placed on foreign aid programs. USAID, a key player in the initiative, has been one of the main targets of this push, which has been championed by figures like billionaire Elon Musk, who advocates for government efficiency.

An inquiry sent to the State Department for further comment on the termination of the initiative has yet to receive a response.

Main Image: Eskom

Trade & IndustryAfrican startups
Greg Stewart

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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