We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Why Africa's power partnership with the World Bank should attract investors
There’s a word frequently used at global convenings like the World Bank Group’s Spring Meetings held this week in Washington, D.C.—multistakeholder. It refers to an approach to problem solving that involves input from a wide range of players—governments, civil society, private sector corporations and investors.
It will take a multistakeholder approach to bring an ambitious new project announced Wednesday to fruition, an initiative to provide electricity to 300 million people in Africa by 2030.
Of the world’s nearly 800 million people living without power, an estimated 570 million are in Sub-Saharan Africa, according to the World Bank. The organization is partnering with the African Development Bank and its own International Development Association to provide up to $30 billion in funding, but is also banking on private sector investment to help make this plan a reality.
At the meetings this week, GZERO’s Tony Maciulis spoke to Lucy Heintz, Head of Energy Infrastructure at Actis Energy Fund, a global investment company focused on sustainability. Heintz expressed optimism in the announcement and explained the reasons why it could be attractive to investors.
“This is a great ambition and it's a huge plan,” Heintz said. “If it's met on the other side by a real intent to do business by government, wherever those governments may be, in those countries where energy access is still lacking, then I think you can start to see the pieces fall into place.”
Heintz explained there are already tools in place that mitigate risk for cross-border private investors, such as the Multilateral Investment Guarantee Agency (MIGA), a World Bank organization that provides insurance for noncommercial political and economic risk.
Success stories already exist globally, Heintz explained, with India being a prime example.
“India has put in place the right legislative frameworks, the right regulation,” she said. “It's also invested in the enabling environment. So, there's a very successful transmission grid investment program, which is led by the government, but then brings in private sector once those projects are de-risked.”
As for concerns about carbon emissions and environmental risk from expanding electricity generation, Heintz says there is a greater danger in not bringing more people to power.
“Reliable electricity supply is fundamental if you want to have any ability to mitigate the risks of climate change, whether it's refrigeration, cooling, the ability to earn a livelihood, it's fundamental,” she said. “I think that's the most important thing to have in mind.”
For more of our 2024 IMF/World Bank Spring Meetings coverage, visit Global Stage.
The big challenges facing the IMF and World Bank
As the International Monetary Fund and World Bank spring meetings wrap up Friday in Washington, the two crucial global lenders face a few important challenges in the year ahead. GZERO has been on the ground to bring you the big takeaways.
A tale of two recoveries. The IMF’s global economic outlook is fairly rosy as a whole. Inflation is easing in the US and Europe, and 3.2% growth of global GDP is a respectable clip – especially given recent fears of a recession. The US and Chinese economies are both growing, even if Beijing is still struggling with persistent debt and property market woes.
But the recovery has yet to reach every corner of the globe. One-third of the lowest-income countries are poorer today than in 2019, before the pandemic. And because inflation has pushed up interest rates, the costs of servicing sovereign debt have skyrocketed, an especially heavy burden for lower-income countries. Bringing financial stability to these fragile situations is a key focus for the IMF and the World Bank.
Power up. The World Bank announced it is launching a massive $35 billion plan to connect 300 million people in Africa to electricity. It’s the kind of fundamental development work the World Bank excels at, and it will help put the continent on track to drive an increasing share of global growth in the coming decades.
But many of the African students who might benefit from lightbulbs to study by also lack access to basic medical care – in fact, more than half the population of the globe finds themselves shut out of formal healthcare, and another two billion struggle to afford it. The World Bank plans to bring quality care to some 1.5 billion people and bolster public health systems to create sustainable improvements.
A new approach. World Bank President Ajay Banga stepped into a delicate situation succeeding David Malpass, who courted controversy with his skepticism about climate change. Banga is the first president in over a decade coming in from the private sector and he's attempting to streamline processes and make the institution more agile and flexible, which may include merging the Bank’s keystone conferences into one.
We’ll keep you up to date on progress during the Annual Meetings this fall.
For more on the big takeaways from this year’s conference, watch Senior Writer Matthew Kendrick’s interview with Tony Maciulishere.
How to tackle global challenges: The IMF & World Bank blueprint
The International Monetary Fund and World Bank’s Spring Meetings in Washington have told a tale of two economies: In the developed world, inflation is falling, and recession looks unlikely. But many of the world’s poorest countries are struggling under tremendous debt burdens inflated by rising interest rates that threaten to undo decades of development progress. That means these key lenders of last resort have their work cut out for them.
The good news? There’s a proven model, as GZERO Senior Writer Matthew Kendrick discussed with Tony Maciulis at a Global Stage event while reporting on the meetings. Somalia, once the byword for a failed state, managed to implement massive reforms to its financial system to meet the guidelines of the IMF’s Highly Indebted Poor Countries Initiative.
“Because they met those guidelines — while still in a very fragile environment where they were fighting Islamic extremists in the country, dealing with semi-autonomous zones in the north — they managed to discharge 90% of their debt,” said Kendrick. “It's proof that even in very fragile countries, if, as the Somali finance minister said yesterday, you build these projects into nationally unifying efforts to build a better future, they can have tremendous success.”
Kendrick also cited comments from experts calling for the IMF and World Bank to change how they view humanitarian work more generally and not back away from countries amid war. “Conflicts are becoming a day-to-day part of our lives all over the world,” he says. “That means that the IMF and World Bank, in order to make progress on development, have to figure out ways to work with the institutions in these countries as they are also in conflict.”
For more of our 2024 IMF/World Bank Spring Meetings coverage, visit Glogal Stage.
- IMF says economic picture is rosy, but how does it look from the bottom? ›
- Debt limits of rich countries hurt poor countries' growth, says World Bank's Malpass ›
- What We're Watching: Nigerians vote, Biden's World Bank pick ›
- World Bank economist: The poorest are getting poorer globally ›
- With electric bills soaring, should the EU cap natural gas prices? ›
- Why Africa's power partnership with the World Bank should attract investors - GZERO Media ›
World Bank announces plan to bring power to 300 million in Africa
World Bank Group is bringing power to the people. Literally.
This week, during the bank’s annual Spring Meetings, the group announced a major new initiative to provide electricity to 300 million Africans by 2030. It is estimated that nearly 800 million people globally lack access to power, and the vast majority of them, 600 million, live on the African continent.
GZERO’s Tony Maciulis met with the World Bank’s Director of Infrastructure for West Africa Franz Drees-Gross, to discuss the project's details.
Over the next six years, the World Bank aims to connect 250 million people using $30 billion of public sector funding largely drawn from its International Development Association. The development finance institution provides low-interest loans and grants to the poorest countries. The group has also partnered with the African Development Bank, which has committed to supporting an additional 50 million people.
The connectivity will come from a combination of sources, some existing and some to be created by the project.
“It turns out that the most cost-effective way to connect those 250 million people is to connect about half of them using off-grid solutions,” Drees-Gross said. “So that means solar home systems, it means mini-grids that aren't connected to the larger national grid, and the other half of that goal will have to be connected by grid extensions and grid densifications.”
The ambitious plan comes with challenges including fortifying and modernizing existing utility companies to be able to consistently provide power and collect customer payments.
“The problem in many Sub-Saharan African countries is that utilities aren't recovering their costs,” Drees-Gross said. “They lose 30, 40, sometimes 50% of electricity due to commercial and technical losses. Since they only invoice a fraction of what they buy from the generators and then fail to collect that entire amount, that leads to a deficit.”
That inconsistent business has made the utilities less attractive to private-sector investors. World Bank hopes its support in stabilizing the power industry in the region will be an opportunity that will bring in private investment, ultimately powering the growth of more economies in Africa.
For more of our 2024 IMF/World Bank Spring Meetings coverage, visit Glogal Stage.
Hard Numbers: Chechnya bans beats, Poland’s right stays strong, Biden cancels student debt (again), Argentina battles dengue, “Hardest Geezer” runs Africa
116: Can you feel the beat? If you’re in Chechnya, from now on you are only rocking between 80 and 116 beats per minute. That’s because a new law bans any music faster or slower than that range. The Goldilocks move, taken by the quasi-Islamist dictatorship of Ramzan Kadyrov, aims to shield the North Caucasus republic – which is part of Russia – from insidious Western influences. But don’t worry – as GZERO design captain Ari Winkleman points out, you can still listen to Radiohead’s “Creep” (92 bpm) on repeat in the streets of Grozny.
52.5: Polish PM Donald Tusk’s centrist governing coalition won just 52.5% of the vote in Sunday’s municipal elections, a narrow victory that underscored the persistent strength of the far-right Law and Justice Party, which took close to 34%, the largest share of any single party. Tusk’s coalition ousted Law and Justice from national power in bitterly fought general elections last fall but has continued to clash with the party over rule-of-law issues and appointments ever since.
25 million: The Biden administration on Monday announced a sweeping new program of student debt forgiveness that it said would give relief to some 25 million borrowers, including those who are either facing economic hardship, owe more now than they did at the start of their payback periods, or who have had debt for more than 20 years. The new plan replaces an earlier one that was struck down by the Supreme Court but is expected to face some legal challenges of its own.
232,996: Argentina is facing its biggest-ever outbreak of dengue fever, with some 232,996 cases of the virus already registered this season, nearly double last year’s figure. Experts say that warmer temperatures, potentially linked to global warming, are extending the breeding season for the mosquitos that carry the disease. Dengue is sometimes fatal and never fun – high fevers, severe body aches, vomiting, and it can be more lethal the second time you get it.
9,940: If you think your little 20-minute morning run is something special, consider the feat achieved by the UK’s Russ Cook, otherwise known as “The Hardest Geezer.” Cook just finished running from South Africa to Tunisia – ie, the entire continent of Africa. The 9,940-mile journey, which he ran for charity, took him almost a year to complete. To celebrate, the 27-year-old endurance athlete knocked back a strawberry daiquiri.Russia invites Africa to go nuclear
In sub-Saharan Africa, about 600 million people, half the total population, lack electricity. And with the volatility in oil prices of recent years and the need to transition toward cleaner sources of energy, many African governments now want to invest in nuclear power. Russia, beleaguered by Western sanctions, would like to help.
Today, there’s just one nuclear power station on the African continent – in Cape Town, South Africa. Egypt, Kenya, Uganda, and Rwanda have already announced construction plans. Rosatom, Russia’s state nuclear company, says it has signed cooperation agreements with Algeria, Burkina Faso, and Mali.
For Russia, commercial partnerships in Africa serve both economic and political purposes. They offer long-term revenue for a Russian economy saddled with sanctions and now deeply dependent for growth on wartime military production. They also provide political cover for a country that will remain isolated from the West for the foreseeable future.
For African countries that want to provide affordable electricity to hundreds of millions of people who need it – and without pumping more carbon into the atmosphere – it’s an opportunity for positive change.
But nuclear power plants generally take a decade or more to build, so it will be years before African countries benefit.
Somalia signs defense pact with Turkey amid tensions with Ethiopia
Turkey confirmed Thursday that it has signed a defense agreement with Somalia. The deal commits Ankara to defending Somali waters and to helping Mogadishu build up its navy against “foreign interference” – a veiled reference to rising tensions with Ethiopia.
Last month, Addis Ababa signed a memorandum of understanding with the breakaway state of Somaliland allowing Ethiopia to utilize the port of Berbera in exchange for recognizing Somaliland’s independence. Ethiopia is the world’s most populous landlocked country, so securing sea access is vital, but Mogadishu says the deal is an unacceptable violation of its sovereignty.
Could it come to war? The United States is certainly concerned, with Washington’s top Africa diplomat, Assistant Secretary of State Molly Phee, shuttling between meetings with Ethiopian Prime Minister Abiy Ahmed and Somali President Hassan Sheikh Mohamud and telling reporters “the region can ill-afford more conflict.” The European and African Unions, the Arab League, and Egypt are all echoing US and Turkish calls for Somali sovereignty to be respected.
But we’ve got our eye on the United Arab Emirates, which previously facilitated ties between Ethiopia and Somaliland and could lean on its growing military influence in the Horn of Africa to sway the course of events – particularly with African Union troops set to pull out of Somalia this year.9 fun facts about the Africa Cup of Nations
The Africa Cup of Nations is underway in Ivory Coast, with the gut-churning knockout stage set to begin on Saturday. The month-long continental soccer tournament happens every two years and recently expanded to accommodate 24 national teams – all of which began the competition hoping to prove they’re the best squad on a continent of 1.4 billion people. We have compiled a list of what you should know about this tournament, including the political backdrop of the event.
1. From the pitch to peace
Argentina's Roberto Ayala and Ivory Coast's Didier Drogba during the World Cup in Hamburg, Germany, on June 10, 2006.
Christian Liewig/Reuters
Soccer has played an important role in Ivory Coast’s recent history. In 2005, the country’s national team – particularly international superstar Didier Drogba – helped stop a bloody civil war that began in the West African country three years earlier. Right after Les Éléphants defeated Sudan and qualified for the World Cup for the first time, Drogba issued an emotional call for the warring parties to lay down their weapons for the sake of the country. Drogba’s speech was blasted across the airwaves and ultimately helped lead to a cease-fire.
2. China’s stadium diplomacy
Security forces officers stand guard in front of the Alassane Ouattara Olympic Stadium of Ebimpe in Abidjan, Ivory Coast, on July 11, 2023
REUTERS/Luc Gnago
Three out of six stadiums used for the tournament across Ivory Coast were either built or designed by China, highlighting Beijing’s efforts to expand its influence in Africa through infrastructure projects tied to its Belt and Road Initiative. The Stade Alassane Ouattara Ebimpe, where the final of the tournament will be played on Feb. 11, was built by the Chinese state-owned Beijing Construction Engineering Group.
3. Eyes on the prize money
Senegal's national team celebrates after winning AFCON in Feb. 2022.
REUTERS
The winners of AFCON will receive a $7 million prize, which is a 40% increase from what Senegal received when it won the cup two years ago. But it’s still far below what was raked in by the victors of other recent major tournaments. Argentina, for example, received a $42 million prize for winning the World Cup in Qatar in 2022. And all of the teams playing in this year’s UEFA European Championship get over $9 million each – just for taking part.
4. Near-empty stadiums, full-on scandal
Cameroon during the TotalEnergies Caf Africa Cup of Nations Afcon 2023 match between Gambia and Cameroon at Stade De La Paix on January 23, 2024 in Bouake, Cote d Ivoire.
Didier Lefa/REUTERS
Before the tournament, the African soccer governing body CAF announced staggering numbers of ticket sales to whet the appetites of fans and to show sponsors how viable their flagship product was. But when the tournament kicked off and games were played in almost empty stadiums, people started questioning those numbers. Fans found tickets hard to purchase, and allegations of black market activities swirled across social media — a claim the scandal-plagued CAF has since denied. It attributed the setback to a “printing issue” due to a spike in orders at the last minute.
5. Broadcast battle
Algeria during the Africa Cup of Nations match between Mauritania and Algeria at Stade De La Paix on January 23, 2024 in Bouake, Cote d Ivoire.
Didier Lefa/Reuters
Just before the tournament began, fans faced the possibility they might miss the highly anticipated event altogether. Africa's largest pay-TV company, MultiChoice, withdrew from an agreement to broadcast the competition to over 20 million subscribers. New World TV, a relatively unknown broadcaster headquartered in Togo, initially outbid the South African company for the rights. They subsequently managed licensing for other broadcasters but couldn’t reach a deal with their South African counterpart. Ultimately, all parties involved hurried to secure a MultiChoice deal just three days before the opening game.
6. Give or take a year
January 13, 2024. AFCON 2023, Ibrahim Sangare, Ivory Coast vs Guinea Bissau, at the Stade Olympique Alhassane Ouattara, Abidjan, Cote D Ivoire
Ebenezer Amoakoh/Reuters
Why is it called AFCON 2023 when it’s 2024? Since 2019, the competition has been planned for the summer to ease scheduling conflicts with the European soccer calendar, where Africa’s biggest stars ply their trades. Planned for the 2023 summer, the competition was postponed in July 2022 due to concerns about weather in Ivory Coast, which promised a torrent of downpours during the Northern Hemisphere’s summer — which even the newly designed Chinese stadiums couldn’t handle. Rather than change its name to AFCON 2024, the initial iteration was maintained for sponsorship purposes. This was also the case with the previous edition, AFCON 2021, which was held in 2022 in Cameroon.
7. Chaos undoes predictions
January 22, 2024. AFCON 2023, Pablo Ganet celebrates his goal in the final round of group stage match between Equatorial Guinea vs Ivory Coast, Stade Olympique Alhassane Ouattara, Abidjan, Cote D Ivoire.
Ebenezer Amoakoh
The AFCON defies logic. It is pure chaos. Once the competition commences, most pre-tournament punditry/projections become irrelevant. Ivory Coast, an African football heavyweight and the tournament host, faced the prospect of an early exit after being humiliated by Equatorial Guinea, a country led by a 34-year-old who plays in Spain’s lower league. Ghana is out. Tournament record winner Egypt pulled out all the stops to progress to the knockout stage. 2019 champs Algeria finished bottom of its group after a string of embarrassing results, compounded by a loss to Mauritania — which had never won a game at the competition and is ranked 105th best soccer team in the world. True to tradition, the tournament continues to humble giants.
8. White Elephant project?
Ivory Coast President Alassane Ouattara during the AFCON opening ceremony.
REUTERS/Stringer
Ivory Coast President Alassane Ouattara seems to have borrowed from the African dictator's playbook: hosting a big, popular sporting event to try to launder his undemocratic image. Ouattara, who is winding down a controversial third-term presidency, knows a thing or two about being autocratic, though it is unclear whether the 82-year-old will try to tighten his grip on power in 2025. But at least through CAF, he’s given Ivorians palpable joy and pride in exchange for popularity. He even grabbed Washington’s attention: Sec. of State Antony Blinken attended one of the games this week as America’s top diplomat was touring the region to hawk America’s soft power.
9. Questionably ‘energizing’ soccer
The Africa Cup of Nations match between Cape Verde and Egypt at Stade Felix Houphouet-Boigny on January 22, 2024 in Abidjan, Cote d Ivore.
Didier Lefa/Reuters
Global brands are also notorious for using huge sporting events to whitewash their images, and the AFCON is no different. French oil and gas giant TotalEnergies, controversial for its dealing on the continent, has been the title sponsor of CAF’s flagship competition (and its other tournaments) since 2016.
Interestingly, it still retains this position even as African leaders are increasingly taking a prominent role in the global climate conversation, an issue with severe implications for the continent's 1.4 billion people. What a time to have a global oil giant dominate pitch-side advertising boards and maintain a ubiquitous presence across its endless social media posts to millions of fans.