Barclays Africa commits $500 mln to Power Africa initiative

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“Barclays Africa has a long-standing reputation in Africa, playing a significant role in realising African governments’ ambitions of sustainable and independent power supply,” Stephen van Coller, CEO of the corporate and investment banking division of Barclays Africa, said in a statement.

The Power Africa initiative, under the leadership of US president Barack Obama, aims to ramp up Africa’s power production and supply. Barclays Africa’s commitment is expected to increase the available power by up to 12,500 megawatts in countries that participate in the programme.

(READ MORE: US working to power Africa’s electricity goals)

Last year, Barclays managed to secure mandates to provide 10.8 billion rand worth of debt funding to a total of six projects in South Africa during the South African government’s third Independent Power Producer Procurement round.

Barclays is one of a number of international firms that have recently committed to heavily investing in sub-Saharan Africa’s energy production and distribution on the backdrop of the US-Africa Leaders Summit, which was held in Washington from August 4 to 6.

Firms such as General Electric, Dangote Industries, Standard Bank and the World Bank group have also pledged financial commitments to the continent’s power production.

(READ MORE: Private firms’ US$350 million pledge to Africa’s energy gap)

Philip Lindop, head of investment banking at Barclays Africa, was optimistic that this move would cement Barclays Africa’s presence as a major player in Africa’s banking and energy industry.

“Our sector focus and leadership demonstrates that we are well positioned to realise our vision of being the ‘go to’ corporate and investment bank in Africa. We expect the energy sector to continue to grow further in the coming decade,” said Lindop.

“Given the need for power on the African continent, combined with increasing knowledge of and experience in how to execute these transactions, we expect that Barclays Africa will remain well positioned to partner with our clients in realising their ambitions.”