1、Autumn 2021Africa FocusTransitioning to new priorities in a post-pandemic eraContentsClimate change litigation in Africa:Current status and future developmentsPage 2Renewable energy in Africa:Update in the era of climate change Page 10M&A transaction terms:Comparing Africa to EuropePage 18African M&

2、A stages a comeback Page 22US government agencies focus on Africa Page 26Debt:Outlook for Africa brightens after challenging first half to the yearPage 34Acquisition financing in an era of energy transitionPage 38Southern Africas PGMs are on the rise Page 46Inside cover:artur carvalho/Getty ImagesCo

3、ver:Luanda Bay,Angola AdemarRangel/iStock/Getty Images Plus1Victoria Falls,ZambiaOur seventh edition of Africa Focus focuses on the potential for transformative changes within Africa during a time of historic global transitionnot just from a COVID-19 to post-COVID-19 world,but against the backdrop o

4、f the United Nations Climate Change Conference COP26 in Glasgow,Scotland.Issues around balancing greenhouse gas emissions against the development and use of natural resources as Africa industrializes and seeks to overcome roadblocks and challenges to growth(of which COVID-19 is only one)and climate

5、change-related challenges and vulnerabilities against GDP growth and increasing prosperity will be seen increasingly across sectors,industries and geographies in Africa.These discussions are already defining the way in which governments,investors,lenders and other stakeholders view opportunities in

6、Africa and will do so more directly and more frequently in the coming years.What does this mean for the world of business?Litigation related to climate change,a now well-established trend in Europe and North America,seems to have reached Africa,too.In“Climate change litigation in Africa:Current stat

7、us and future developments,”we outline signature cases and examine climate-related matters that might trigger challenges and disputes across Africa.Equally,we all recognize that there are increasing investment opportunities when it comes to renewable energy.Seven of the ten sunniest countries in the

8、 world are in Africa,and wind power is no longer a novel feature in the increasingly sophisticated energy landscape in Africa.In“Renewable energy in Africa:Update in the era of climate change,”we explore the significant opportunities for wind,geothermal and hydropower,too.US foreign policy toward Af

9、rica has undergone significant shifts under the Biden administration.In“US government agencies focus on Africa,”we provide an overview of the US government agencies active on the continent and their focus and how that ties in with both energy transition and renewable energy.In“Debt:Outlook for Afric

10、a brightens after challenging first half to the year,”we discuss recent successful loan and bond issuances by African borrowers,investor resilience and lender interest in high-quality credits throughout the region.Africa is experiencing a boom in M&A.In“M&A transaction terms:Comparing Africa to Euro

11、pe,”we contrast terms that typically apply to African M&A transactions,with those in Europe.And“African M&A stages a comeback”explores how African transactions appear to be highlighting a renewed sense of confidence among dealmakers.Acquisition and divestment strategies in Africa have become highly

12、sophisticated.As a case study,“Acquisition financing in an era of energy transition”describes the January 2021 sale of a 45 percent stake in Nigerian Oil Mining Lease 17(OML 17)and related infrastructure assets,using an innovative,first-of-its-kind hybrid financing structure.Finally,“Southern Africa

13、s PGMs are on the rise”explains how platinum group metals(PGMs)are increasing in southern Africa mining,on the back of demand for net-zero and the green economy.Transitioning to new priorities in a post-pandemic eraMukund Dhar Partner,White&Case LLPAfrica Interest Group Leader Our seventh edition of

14、 Africa Focus focuses on the potential for transformative changes within Africa during a time of historic global transition.1Africa FocusClimate change litigation in Africa:Current status and future developments Climate change litigation is increasing steadily worldwide,but few cases have been filed

15、 yet in Africa By Markus Burianski,Mark Clarke,Federico Parise Kuhnle and Gwen WackwitzClimate change litigation covers a range of different proceedings.Generally,it is defined as claims that expressly raise an issue of fact or law relating to the causes or impacts of climate change.Due to increased

16、 global urgency to tackle climate change,climate change litigation has dramatically increased in recent years,particularly in the US and Europe.More than 1,000 climate cases have been filed globally since 2015(approximately the past six years),compared to 834 cases filed in 1986 2014(approximately 2

17、8 years).1 Despite this global increase,only a few cases specifically related to climate change have been filed in Africa.The African continent is particularly vulnerable to the impact of climate change,as global warming is expected to increase droughts,desertification and flooding across the contin

18、ent.2 However,only ten climate change cases have been raised in African jurisdictions to date.3 This situation is unlikely to remain this way.As the scale and scope of climate change litigation continue to grow,with a notable rise in the number of strategic claims now intending to influence governme

19、nt policies and corporate investment decisions,litigation related to climate changing activities or effects on the African continent could increase significantly in the coming years.THE EVOLUTION OF CLIMATE CHANGE DISPUTESHistorically,climate change litigation principally focused on claims for Only

20、ten climate change cases have so far been raised on the African continent.Avenue de Baobabs in western Madagascardamages against large oil&gas companies,mainly on the basis that these companies produce and distribute products that directly relate to greenhouse gas(GHG)emissions.For instance,several

21、US states and municipal authoritiesincluding authorities from California,Colorado,Delaware,New Jersey,Rhode Island,South Carolina,Washington State and Marylandhave commenced proceedings against energy companies,seeking compensation for the alleged damages caused to local communities as a result of c

22、limate change.However,these claims have struggled to succeed against the complex energy sector,where myriad supply chains and consumer choices can make it difficult for claimants to establish direct causal links between the alleged harm and a specific companys GHG emissions.Consequently,claimants ha

23、ve sought to increase the scope of climate change claims by bringing claims for relief other than damages and basing their claims on alternative causes of action,which do not require them to prove a chain of causation between the defendants GHG emissions and the specific climate-related injury that

24、is alleged.Indeed,one of the most significant trends in climate change litigation has been the emergence of rights-based claims,in which claimants invoke their human rights as a means of trying to hold governments and corporations accountable for their climate change commitments.Urgenda Foundations

25、claim against The Netherlands4The well-publicized success of the Urgenda Foundations claim against the Netherlands,which was originally brought before the District Court of The Hague in 2015,has been triggered for other wide-reaching rights-based claims.The Urgenda Foundation(a Dutch environmental g

26、roup)claimed that the government of the Netherlands had failed to take sufficient action to reduce its carbon emissions,in violation of the governments duty of care to its citizens under Articles 2(Right to life)and 8(Right to respect for private and family life)of the European Convention on Human R

27、ights.This was the first decision by any court in the world to order a nation to limit its GHG emissions for reasons other than statutory mandates.The case was appealed twice,and the Supreme Court ultimately confirmed the decision in December 2019,ordering the government to reduce its GHG emissions

28、by at least 25 percent(compared to 1990 levels)by the end of 2020.52White&CaseFollowing this landmark judgment,national courts of at least four other European countriesincluding Ireland,France,Germany and Belgiumhave held that their governments failed to implement their climate commitments,in breach

29、 of human rights standards.6 Following a March 2021 decision by Germanys Federal Constitutional Court,7 the German legislature released an amended Climate Change Act with stricter emission targets.8 A further action of this nature was filed against the UK Prime Minister in May 2021.9 These claims sh

30、ow no sign of abating.Claimants are not only challenging governments and their climate commitments,but are increasingly advancing strategic litigation against large corporations in order to hold them accountable for their global activities,too.Claimants are not only challenging governments and their

31、 climate commitments,but also are increasingly advancing strategic litigation against large corporations in order to hold them accountable for their global activities.Milieudefensie et al.v.Royal Dutch ShellIn May 2021,a group of seven Dutch non-governmental organizations(NGOs)(Milieudefensie et al.

32、)successfully managed to extend the principles established in the Urgenda decision against a private corporation.Specifically,the District Court of The Hague found that Royal Dutch Shell(the UK-incorporated parent company of the Shell Group with its headquarters in the Netherlands)had a duty of care

33、 under the European Convention on Human Rights to do more to reduce carbon emissions,and thus ordered the company to reduce its carbon dioxide emissions by 45 percent by 2030,compared to 2019 levels.10 The Court also found that Royal Dutch Shell has a best-efforts obligation to reduce the emissions

34、of its suppliers and customers.This decision could require a significant organizational commitment from Royal Dutch Shell and substantial engagement with all the companies in its global supply chain and business network,across all of the 70 countries in which the group operates.This decision marks a

35、 critical turning point for global climate change litigation.For the first time,a climate change-related claim has successfully targeted the business of a corporation and its operations worldwide,focusing on a corporations obligations to society generally.The District Court of The Hague specifically

36、 noted that,as the policy-setting body for a major player in the global oil industry,“much may be expected of”Royal Dutch Shell by way of active steps to safeguard human rights in relation to climate change.11 Thus,the Court distinguished between the activities of Shell and its parent company,recogn

37、izing that Royal Dutch Shells responsibility for emissions from the Shell Group was higher than for emissions from the wider group of entities.INCREASED SCOPE FOR AFRICAN CLAIMANTS TO BRING CLIMATE CHANGE LITIGATIONThis recent shift toward parent company liability for climate change and/or human rig

38、hts violations has increased the potential for claimants in Africa to take legal action against entities based in Europe,as demonstrated by a recent decision before the UK Supreme Court(albeit only in relation to jurisdiction).Okpabi and others v.Royal Dutch Shell In this claim,brought by 40,000 cit

39、izens in the Niger Delta against Royal Dutch Shell,the claimants sought to hold the parent company responsible for the alleged environmental damage and human rights abuses by its Nigerian subsidiary,Shell Petroleum Development Company of Nigeria Ltd(SPDC).12 Specifically,the claimants alleged that o

40、il spills and pollution from pipelines operated by SPDC caused substantial environmental damage,with the result that natural water sources cannot safely be used for drinking,fishing,agricultural,washing or recreational purposes.While the merits of this claim are yet to be decided,the UK Supreme Cour

41、t determined that it was at least arguable,based on the degree of control and de facto management,that the parent company owed a duty of care to the claimant Nigerian citizens with respect to alleged environmental damage and human rights abuses by Shells Nigerian subsidiary.Lliuya v.RWE AGCorporatio

42、ns could also be sued in the country where they are registered for climate change-related damage caused elsewhere in the world.One case,in principle,could provide a precedent for claims concerning climate change-related damage in Africa.In 2015,a Peruvian farmer sued the German energy company RWE be

43、fore the District Court of Essen for damages caused by the melting of a glacier near his hometown of Huaraz,Peru.Although RWE did not operate near Huaraz,the claimant argued that worldwide GHG emissions caused climate change,which had resulted in the glacier melting,and pursued RWE for only 0.47 per

44、cent of the adaptation costs needed to contain the floodwater from the melting glacier(a percentage said to correlate to RWEs contribution to global GHG emissions).13 Although the District Court rejected the claim(on the basis that the claimant had not proven a causal link between RWEs emissions and

45、 the alleged damage),an appeals court has allowed the Historically,climate change litigation principally focused on claims for damages against large oil&gas companies.4White&Caseclaim to proceed and is now receiving evidence on causation.Pending a decision on the merits of the case by the appeals co

46、urt,this case demonstrates that German courts are prepared to accept jurisdiction of cases against domestic corporations concerning climate change-related damage resulting in other,distant countries.The same principle could apply equally to countries in Africa.Friends of the Earth v.TotalIn addition

47、 to the widening scope of parent companies duty of care,newly enacted legislation in many European jurisdictions is also increasing the scope of potential liabilities for companies with activities in the developing world.For instance,in 2017,France introduced the Law on the Duty of Vigilance,which r

48、equires French companies to identify and prevent risks to human rights and the environment that could occur as a result of their business practices.In 2019,following the introduction of the Law on the Duty of Vigilance,six non-governmental organizations including Friends of the Earth commenced legal

49、 proceedings against Total,alleging that Total had failed to adequately assess the human rights and environmental impact of an oil project operated by Total in Uganda and Tanzania.14 In particular,the claimants alleged that Totals vigilance plan did not properly account for the projects potential li

50、fe cycle of GHG emissions.In January 2020,Frances Nanterre Civil Court declined jurisdiction to hear the claim on the basis that it was not competent to determine issues relating to the internal corporate management of the company with respect to the vigilance plan.Notre Affaire A Tous v.TotalHoweve

51、r,in a separate litigation brought against Total in February 2021 under the same law,15 the Nanterre Civil Court took the contrary view and ruled that it did have jurisdiction to determine the climate change-related claim.The Court noted that,although the vigilance plan affects the operations of a c

52、ompany,its purpose and the risks it is intended to prevent extend beyond this.Although the Court did not rule on the merits of the claim against Total,the fact that it confirmed its jurisdiction to do so is a major development,which is likely to encourage the commencement of further claims against F

53、rench companies related to the environmental impact of their operations,both within France and elsewhere in the world.The increasingly international harmonization of domestic legislation,in combination with the recent spate of unprecedented judgments that seek to bind governments and companies to th

54、eir climate change commitments,could potentially have far-reaching consequences.This may also hold true for the development of climate change disputes on the African continent,which so far has lagged behind other regions of the world.16CLIMATE CHANGE DISPUTES IN AFRICADespite the high levels of vuln

55、erability of its people and ecosystems to climate change,to date,there have been relatively few climate change-related claims brought before the courts of African countries.17There are two main reasons for this.First,many African countries have weak or functionally nonexistent legislative frameworks

56、 in relation to climate change.Second,prospective claimants in Aerial view on the green islands of Zambezi River5Africa Focuscompany would have to conduct a new EIA study in compliance with the recently enacted EIA Regulations(the Climate Change Act 2016,the Energy Act 2019 and the Natural Resources

57、 Act 2016)if it chose to pursue the project.In Earthlife Africa Johannesburg,which was commenced before the High Court of South Africa in March 2017,an environmental NGO brought a claim against the Minister of Environmental Affairs,the decision-makers of the Department of Environmental Affairs in ch

58、arge of granting the environmental authorizations,and the companies intending to build the 1,200 MW coal-fired Thabametsi power plant.The claimant argued that the EIA failed to adequately consider the climate change-related consequences of the project under the National Environmental Management Act

59、107(South African NEMA)of 1998.Although the South African NEMA does not expressly contemplate climate change,the High Court held that such considerations are relevant and their Management Authority&Amu Power Co Ltd21 in Kenya,and Earthlife Africa Johannesburg v.Minister of Environmental Affairs22 in

60、 South Africa.In Save Lamu,which was brought before Kenyas National Environmental Tribunal in November 2016,a community-based organization representing Lamu County and other individual claimants challenged the issuance of a license by the Kenyan National Environmental Management Authority(NEMA)to a

61、power company for the construction of the first coal-fired power plant in Kenya.The claimants argued that the Kenyan NEMA failed to conduct a proper EIA,and therefore contributed to the adverse effects on human health and biodiversity caused by climate change.In June 2019,the Tribunal set aside the

62、license issuance and decided that the Kenyan NEMA had violated the EIA regulations by granting it without proper and meaningful public participation in the process.The Tribunal also ordered that the power these countries often face obstacles,such as a lack of standing and limited access to financial

63、 resources to fund their claims.18 While there are ongoing efforts to improve the legislative frameworks,and civil society activism is growing in many African countries,19 climate change is not typically regarded as a standalone issue,but rather a secondary consideration in broader environmental dis

64、putes concerning issues such as land use,natural resources conservation and environmental protection in general.20Environmental impact assessmentsThat said,a number of noteworthy climate change disputes have been brought before the courts of certain African countries.The majority of these cases revo

65、lve around environmental impact assessments(EIAs),often for the construction of coal-fired plants.This has been the case,for example,in the cases of Save Lamu et al.v.National Environmental 1 56 1011 1516 2021 2565 70115 1201,345 1,350Notes:Cumulative figures to May 2021.Map created with Source:Auth

66、ors based on CCLW and Sabin Center dataFigure 1:Number of cases around the world,per jurisdiction,to May 20216White&CaseThe success of rights-based litigation in Europe is likely to influence the future of climate change-related disputes in Africa as well.courts,including SERAC et al.v.Nigeria,Gbemr

67、e v.Shell Petroleum Development Company of Nigeria Ltd.and Others,and Mbabazi&others v.The AG in Uganda,some of which were among the first cases addressing rights-based issues.In SERAC,two NGOs brought a claim in the African Commission on Human and Peoples Rights in 1996 alleging that the government

68、 of Nigeria was guilty of violations of the right to a clean environment,owing to its condoning and facilitating the operations of oil corporations on Ogoniland.In May 2002,the Commission ruled that the Nigerian government was in breach of the African Charter on Human and Peoples Rights and that the

69、 Ogoni people had suffered violations of their right to health(Article 16)and right to a general satisfactory environment favorable to development(Article 24)owing to the governments failure to prevent pollution and ecological degradation.While not strictly related to climate change,this case is not

70、eworthy as it recognized the absence from the projects EIA made its approval unlawful.The High Court cited several reasons,especially South Africas commitments under the Paris Agreement.Following the High Courts decision,the Minister of Environmental Affairs reconsidered the permit application in li

71、ght of a newly finalized climate change impact assessment and again approved the plants authorization in January 2018.In March 2018,the NGOs Earthlife Africa and Trustees for the Time Being of the Groundwork Trust challenged the Ministers decision,asking the court to set aside the decision for faili

72、ng to consider site-specific climate change impacts associated with the project.In November 2020,the High Court,following an agreement between applicants and defendants,issued an order setting aside all governmental authorizations for the coal-fired power plant.Rights-based claimsA number of rights-

73、based claims have been brought before African right to a healthy environment and established a range of qualitative human rights standards that the country must observe in order to protect its citizens.There is no reason why those standards cannot be applied,by extension,to climate change issues.In

74、Gbemre,Mr.Jonah Gbemre,a representative of the Iwherekan community in the Niger Delta,filed a claim in the Federal High Court of Nigeria in July 2005 against the Nigerian government and Shell.Mr.Gbemre alleged that,in the course of their exploration and 800180Of the climate cha

75、nge litigation cases recorded up to 2020,50 percent were filed between 2015 and 2020All other countriesUS28200020022004200620082001620182020Figure 2:Total climate change litigation cases recorded(1986 2020)Source:CCLE and Sabin Center data7Africa FocusFigure 3:In com

76、ing years,Africa will carry a disproportionately large share of the impact of climate change,likely triggering more disputesWest AfricaSouthern AfricaKey climate change riskssea-level rise/coastal degradationLoss of agricultural potential/droughtTropical cyclones/extreme weatherLoss of biodiversityM

77、igrationConflict and warfareSeveral major West African coastal cities are highly vulnerable to sea-level rise.Monsoon-like rainfall could cause flooding.Existing conflicts could escalate.Reduced rainfall in Botswana and southern Angola threaten the Okavango Delta;coastal areas are vulnerable to sea-

78、level rise and more severe tropical cyclones.Severe reduction in agricultural potential would be expected across the region.Central AfricaPressure on adjacent regions will likely increase pressure on Africas tropical rain forests,impacting CO2 emissions and biodiversity.Low-lying coastal areas are v

79、ulnerable to sea-level rise.Loss of agricultural potential could trigger migration.North AfricaThe highly populated Nile Delta is highly vulnerable to rising sea levels.Famine and conflict could cause a new wave of migration,including to Europe.Existing conflicts in Libya and across the Sahel could

80、escalate.East AfricaThe East African Coast is vulnerable to sea-level rise,severe weather events including tropical cyclones,flooding and drought.Increased pressure on protected areas could threaten biodiversity.The Zambezi Delta and other low-lying areas are especially vulnerable to rising sea leve

81、ls.Increased temperatures and lower rainfall would threaten agriculture.Simulated annual mean temperature change(C)relative to 1850 1900 at 2.0C global warming1.0 1.5 degrees Celsius1.5 2.0 degrees Celsius2.0 2.5 degrees Celsius2.5 3.0 degrees Celsius8White&Caseproduction activities,the defendant oi

82、l companies had engaged in massive and unceasingly intense gas flaring in the Iwherekan community,without considering the consequences,and alleged that these activities poisoned and polluted the environment,contributing to adverse and potentially life-threatening climate changes,including acid rain.

83、On that basis,the claimant argued that the actions of the oil companies constituted a gross violation of the guaranteed fundamental rights of life and dignity of human persons provided in the Nigerian Federal Constitution and the African Charter on Human and Peoples Rights.In November 2005,the Court

84、 agreed with the claimants allegations and ordered the oil companies to stop flaring gas in the Niger Delta.Finally,in Mbabazi,in September 2012,four citizens and a Ugandan NGO brought their claim against the Attorney General of the Republic of Uganda and the National Environment Management Authorit

85、y(Ugandan NEMA)before the Ugandan High Court.The claimants alleged that various damage and loss of life resulting from extreme weather events were linked to climate change inaction on the part of the government.They argued that(i)the Ugandan Constitution makes the government of Uganda a public trust

86、ee of the national resources,including its atmosphere,and imposes a duty to preserve those resources from degradation for present and future generations;and(ii)unless action is taken immediately,the current climatic patterns of prolonged droughts,floods,hurricanes and crop losses will escalate into

87、human catastrophe for both the present and future generations.After a preliminary hearing,the High Court ordered the parties to undertake a 90-day mediation process but since then has taken no further action.Nevertheless,this case is noteworthy because it involved the invocation of the public trust

88、doctrine,which has also been used by claimants in climate change disputes in other common law jurisdictions,for example,in the US in Juliana et al.v.the United States.23 THE FUTURE OF CLIMATE CHANGE DISPUTES IN AFRICAThe success of rights-based litigation in Europe is likely to influence the future

89、of climate change-related disputes in Africa as well,particularly in light of the precedents established by the SERAC and Gbemre cases.The growing number of African nations that are seeking to introduce specific climate change legislation could further boost this development.Human rights will likely

90、 continue to be intrinsic to future cases,considering the increasing acceptance of the impacts of climate change on health,livelihoods,access to clean water and other fundamental rights.Moreover,if the public trust doctrine gains traction in other large common law jurisdictions such as the US or the

91、 UK,it could also become an argument for plaintiffs in African common-law jurisdictions such as Nigeria,Ghana or Kenya.In any event,as the worlds attention becomes increasingly focused on climate change mitigation and adaptation strategies,climate change-related litigation concerning economic activi

92、ty or detrimental effects in African countries will inevitably increase.This could take many forms.Claims could be brought in courts outside the African continent in relation to operations of multinational corporations within the continent,whether those corporations are incorporated within Africa or

93、 elsewhere.Equally,claims could be brought in African national courts in relation to the physical impacts of climate change on the continent.Rights-based claims could be brought against governments or corporations in African countries,based on national or transnational conventions and treaties prote

94、cting the rights of the relevant countrys citizens.Recent developments in climate change-related litigation in Europe have provided precedents for each of these categories of claims.So any business with material levels of GHG emissions should be aware of the risks of lawsuits and potential liability

95、.Therefore,it is imperative that all such businesses carefully consider their climate strategies.1 https:/www.lse.ac.uk/granthaminstitute/wp-content/uploads/2021/07/Global-trends-in-climate-change-litigation_2021-snapshot.pdf,p.4.2 Kotz,L.J.,&Du Plessis,A.(2020).Putting Africa on the Stand.Environme

96、ntal Law,50(3),615-663(616-617).3 According to the search engine on (accessed on 3 August 2021).4 Urgenda Foundation v.The Netherlands C/09/456689/HA ZA 13-1396.5 Urgenda Foundation v.The Netherlands,19/00135.6 Friends of the Irish Environment v.Ireland 2017 No.793 JR(2017);VZW Klimaatzaak v.Kingdom

97、 of Belgium&Others(June 2021);Neubauer,et al.v.Germany,Germany Federal Constitutional Court(2021);and Notre Affaire Tous and Others v.France,No.1904967,1904968,1904972,1904976/4-1,Paris Administrative Court(February 2021).7 Neubauer,et al.v.Germany,Germany Federal Constitutional Court(2021).8 See Bu

98、rianski,M.,Hoffmann,S.,&Parise Kuhnle,F.(2021).The German Federal Constitutional Court on the German Climate Change Act.Environmental Law&Management,32(1),12-17(15).9 Plan B Earth and Others v.Prime Minister.10 Milieudefensie v.Royal Dutch Shell C/09/571932/HA ZA 19-379.11 http:/ 4.4.16.12 Okpabi an

99、d others v.Royal Dutch Shell Plc and another 2021 UKSC 3.13 Lliuya v.RWE AG,Higher Regional Court of Hamm 2017 5 U 15/17.14 Friends of the Earth et al.v.Total.15 Notre Affaire a Tous and Others v.Total.16 Kotz,L.J.,&Du Plessis,A.(2020).Putting Africa on the Stand.Environmental Law,50(3),615-663(617)

100、.17 Kotz,L.J.,&Du Plessis,A.(2020).Putting Africa on the Stand.Environmental Law,50(3),615-663(615).18 Adelman,S.,in:Alogna,I.,I.,Bakker,C.,Gauci,J.P.(eds.),Climate Change Litigation:Global Perspectives,2021,Chapter 12,p.274.19 Kotz,L.J.,&Du Plessis,A.(2020).Putting Africa on the Stand.Environmental

101、 Law,50(3),615-663(618);Rumble,O.,&Gilder,A.(2021).Climate Change Litigation on the African Continent.Konrad-Adenauer-Stiftung.Available at:https:/www.kas.de/documents/282730/0/Climate_Litigation_Africa.pdf/1450e939-d100-a70e-8a9d-315161f96024?version=1.0&t=07(last visited on 3 August 202

102、1),p.6.20 Adelman,S.,in:Alogna,I.,Bakker,C.,Gauci,J.P.(eds.),Climate Change Litigation:Global Perspectives,2021,Chapter 12,p.274.21 See case summary at http:/ visited on 3 August 2021).22 Earthlife Africa Johannesburg v.Minister of Environmental Affairs and Others(65662/16)2017 ZAGPPHC 58;2017 2 All

103、 SA 519(GP)(8 March 2017).23 Juliana et al.v.United States,United States District Court,District of Oregon,Eugene Division,docket no 6:15-cv-1517.9Africa FocusRenewable energy in Africa:Update in the era of climate change Africa offers vast potential for renewable energy deployment and investmentsBy

104、 Franois-Guilhem Vaissier,Jennifer Stolp and Joz CoetzerSolar panel in desert,Namib Desert,NamibiaThis article reflects changes in the rapidly evolving and crucial field of renewable energy in Africa.Currently,the International Renewable Energy Agency(IRENA)estimates that with the right policies,reg

105、ulation,governance and access to financial markets,sub-Saharan Africa could meet up to 67 percent of its energy needs by 2030.1 With the right policies in place and investments secured,nearly a quarter of those energy needs could be met through indigenous,clean,renewable energy.2Africas contribution

106、 to greenhouse gas emissions historically has been negligible,and currently comprises less than 2 percent of the worlds total.At the same time,African countries collectively are expected to commit to reduce the continents contribution to greenhouse gas emissions by 32 percent by 2030,through a strat

107、egy to be presented to the United Nations Framework Convention on Climate Change before COP26 in November 2021.3Unlike its contribution to emissions,the impacts of climate change on Africa have been disproportionately severe,and it is feared that the continent will carry a large share of the burden

108、of climate changeespecially if the world fails to limit further increases in average temperatures.This article explores the current outlook for investments in renewable energy projects across Africa.FACTORS DRIVING DEMAND FOR RENEWABLE ENERGY SOURCESAccording to the Brookings Institute,climate chang

109、es impacts in Africa will likely include lowered crop yields,reduced agricultural and labor productivity,and damage to human health.An increase of three degrees Celsius(the assumption if there are no major changes in the worlds social,economic and technological trends)is forecast to decrease Africas

110、 gross domestic product(GDP)by as much as 8.6 percent per year after 2100.Limiting the increase to the 1.5 degrees Celsius specified in the Paris Agreement will do significantly less harm,decreasing GDP by only 3.8 percent per year after 2100(see Figure 1).Yet,Africas energy demands are projected to

111、 triple by 2030.4 Lack of access to electricity is only one of the challenges that Africa faces,but it is one of the most significant obstacles to socio-economic development.And transitioning from energy generated through fossil fuels to energy generated through renewable resources contains its own

112、challenges.The impacts of the COVID-19 pandemic have driven African sovereign debt levels to unprecedented heights,at the very time that more investment is required in order to close the energy and infrastructure gap with renewable energy.The rationale for the developed world to help is both moral a

113、nd practical:moral,because industrialization in the developed world caused the climate-induced harm that Africa is suffering;and practical,because increased instability and conflict in Africa will impact the developed world,especially Europe,with increased migration and security concerns diffusing t

114、o well beyond Africa.The private sector is currently the driving force behind much of the renewable energy projects in Africa.However,regulatory regimes and“ease of doing business”can make these investments difficult at times.State-owned enterprises(SOEs)lag behind the private sector,and will likely

115、 continue unless more African governments reform their SOEs and their energy sectors more generally.For instance,competitive procurement for electricity supplies could offer opportunities in renewable energy to African institutions and markets and drive down the cost of power.As an example,South Afr

116、icas Renewable Energy Independent Power Producer Procurement(REIPPP)program and the World Bank and International Finance Corporations Scaling Solar Program have driven the price of solar-generated energy to as little as US$0.05 per kilowatt-hour.5Africa currently accounts for more than one-sixth of

117、the worlds population,but it generates only 4 percent of the worlds electricity.1%Africas share of global renewable energy investment.Source:Historically,Africas contribution to greenhouse gas emissions has been negligible.10White&Case500kW mini-hydro plant built into the wall of the Katse Dam,Lesot

118、ho12White&CaseFurthermore,South Africa and the countries north of the Sahara account for three-quarters of the continents energy consumption.6 Close to 600 million Africans have no access to electricity,7 and 780 million Africans rely on traditional solid biomass(mainly fuelwood and agricultural was

119、te)for cooking.8 Nearly 80 percent of those lacking access to power across sub-Saharan Africa live in rural areas.9OPTIONS FOR RENEWABLE ENERGY IN AFRICAWith its strong supply of wind,sunshine,hydropower and even geothermal resources,Africa offers great potential for renewable energy deployment and

120、investment.Enhancing access to power generally across the continent is a core objective of both the African Unions Agenda 2063 and the national development plans of nearly all African nations.Renewable energy technology has a crucial role to play in achieving these objectives(see Figure 2).Africa en

121、joys considerable opportunities to deploy renewable energy.A study by the University of California,Berkeley,mapping out the location and energy potential of renewable energy sources in Eastern and Southern Africa shows that,although the energy generation resources are vast,they are not evenly distri

122、buted (see Figure 3).Some of Africas most oil&gas-rich nations are leading the way in the move to renewable energy in order to diversify their economies from overdependence on and reduce demand for oil.Hydroelectricity offers viable solutions for up to one-third of the African nations.On a continent

123、 where frequent and severe droughts plague many regions,though,using rivers for power generation can be controversial.Environmental and socio-economic impacts of inundating large catchment areas also mitigate against large hydropower projects where other viable options exist.As with other models of

124、centralized power generation,distribution networks associated with large hydropower projects are expensive to both construct and maintain.They also represent security risks in parts of the continent where social unrest exists.Smaller,micro-hydro projects and other regional and local renewable power

125、generation projectsincluding wind,solar and geothermalpresent alternatives that may become more prominent in future power generation planning for Africa.As of July 2021,all but two African countriesEritrea and Libyahave ratified the Paris Agreement within the United Nations Framework Convention on C

126、limate Change(UNFCCC).11The Paris Agreement deals with greenhouse-gas-emissions mitigation,adaptation and finance,starting in the year 2020.It requires that each country determine,plan and regularly report on the contribution that it will make to mitigate global warming.Although no mechanism exists

127、to compel nations to set specific targets by a particular date,the expectation is that targets should exceed those previously established.Figure 1:The impact of climate change on sub-Saharan Africas GDPSource:Tom Kompas,Van Ha Pham and Tuong Nhu Che,“The Effects of Climate Change on GDP by Country a

128、nd the Global Economic Gains from Complying With the Paris Climate Accord,”Earths Future 6,no.8(2018):1153-73.0202020272037204720672100-2-4-8-10Percent change in GDP-60(no warming)1.5(Paris Agreement)23(business as usual)Africas adoption of renewable energy projects is accelerating.13Africa FocusDri

129、ven by the Paris Agreement and general concerns about the impact of climate change on the continent,African renewable energy initiatives are gaining momentum.Independent power producers(IPPs)in South Africa have initiated 95 projects since the commencement of the REIPPP.Existing projects concluded u

130、nder the earlier bid rounds are now fully operational,with a new tranche of projects under Round 5 issued in 2021.12 A report by the South African National Energy Regulator indicates that these projects will have an achieved capacity of 3271.25 MWs when they are fully operational.The GET FiT Uganda

131、initiative aims to add an installed capacity of 158 MWs of clean renewable energy to Ugandas national grid by implementing 17 projects.To date,Uganda has commissioned 14 small power plants,with the last three expected to be commissioned in 2021.Three of the projects are small hydropower plants with

132、a total installed capacity of 36 MWs.13The main objective of the GET FiT Program is to assist East African nations in pursuing a climate-resilient low-carbon development path to promote growth,reduce poverty and assist in the best way possible with climate change mitigation.The Zambian government ad

133、opted GET FiT Zambia in October 2017 with the aim of procuring 200 MWs of renewable energy projects over three years.In 2015,Namibia introduced the Interim Renewable Energy Feed-In Tariff Program,which has attracted investments mainly in solar generation.The Batoka Gorge hydroelectric power project

134、is one way in which African countries are partnering to develop renewable energy sources.This US$5.2 billion hydroelectric project on the Zambezi River,that borders Zambia and Zimbabwe,is expected to generate 2,400 GWs of electricity,to be shared equally by both countries.14 The Zimbabwe Electricity

135、 Supply Authoritys(ZESA)generation capacity was measured in February 2016 as producing at only 845 MWs,against a projected national demand of 2,200 MWs and an installed capacity of approximately 1,940 MWs.15 Projects such as the US$1.5 billion Hwange Power Station,which is currently 65 percent compl

136、eted,16 and the Kariba South expansion venture will add approximately 900 MWs to Zimbabwes national grid.17 Once Batoka Gorge comes online,Zimbabwe is optimistic that it will generate sufficient capacity to sell power to neighboring countries,too.18Ethiopias main source of electricity generation is

137、hydroelectric power stations.The Grand Ethiopian Renaissance Dam,which started the second stage of filling in July 2020,19 will be able to generate 6,450 MWs and become one of the largest hydropower dams in Africa.20 Botswana imports a large percentage of its energy from the Southern African Power P

138、ool.As Southern Africa is now experiencing a power deficit,an initiative to enable Botswana to internally generate its own electricity is prominent.A 2016 amendment to the Electricity Supply Act enables private sector participation in electricity generation.Conversely,Mozambiques installed generatio

139、n capacity of approximately 3,001 MWs comes from a combination of hydro,solar,gas,wind,geothermal and coal sources,although only a third of the population has access to electricity.21 Morocco has targeted increasing its electricity generation from renewable energy sources to 52 percent of its total

140、generation capacity by 2030.22 Kenyas renewable energy sector is well established since December 2019,when Kenya brought a new 50 MW solar plant online,and renewable energy accounts for approximately 90 percent of its power.Geothermal and hydropower contribute the bulk of Kenyas renewable energy pro

141、duction.24In June 2018,Gigawatt Global Cooperatief signed a deal with the 15-nation Economic Community of West African States to build US$1 billion worth of renewable energy projects in the region,including installing 800 MWs of solar and wind farms in West Africa,beginning with Burkina Faso,Senegal

142、,Mali,Nigeria and the Gambia.25INVESTING IN AFRICAN RENEWABLE ENERGY PROJECTSAligning with the 2030 vision to energize and”light up”Africa and the African Unions Agenda 2063,more renewable energy sources are being actively explored.Funders are proving less inclined to finance coal-fired power statio

143、ns,driven by their own corporate governance concerns and the proven economic viability of renewable resources.Consequently,Africas adoption of renewable energy With an abundance of solar,wind and geothermal resources,Africa enjoys considerable advantages and opportunities for renewable energy.Figure

144、 2:Cumulative investment needs for African power generation,2015 to 2030Source:International Renewable Energy Agency(IRENA)(2015),Africa 2030:Roadmap for a Renewable Energy Future.IRENA,Abu Dhabi.www.irena.org/remapInvestment US$billion(2015 2030)RegionAll generationLarge hydoOther renewablesTransmi

145、ssion&distributionNorth Africa3422218186West Africa89363152Central Africa32131714East Africa72362149Southern Africa145189474Total684White&Caseprojects is accelerating.The World Bank has estimated that US$43 billion per year of investment is required for infrastructure in the power sector,

146、while the African Development Bank estimates a need for US$230 to US$310 billion until 2025,with an additional US$190 to US$215 billion required for 2026 to 2030.26So how does Africa secure these funds?Development finance institutions have expressed great interest in addressing the renewed urgency t

147、o light up and power the continent.Energy is at the core of the African Development Banks economic transformation agenda,and the Bank committed more than US$12 billion worth of investments to the sector between 2016 and 2020.27 The World Banks implementation of the Africa Climate Business Plan inclu

148、des a plan to apply US$16 billion toward renewable energy projects in Africa.28 Over the past decade,the World Bank has financed close to US$2.3 billion of investments in infrastructure and reforms to support the West Africa Power Pool.As recently as June 2021,it provided US$465 million to expand en

149、ergy access and renewable energy integration in West Africa.29 The Green Climate Fund(GCF),the worlds largest climate finance fund dedicated to supporting developing countries to mitigate and adapt to climate change,is extremely active in Africa.As of July 2021,it had committed US$3.29 billion to 70

150、 approved projects in Africa,52 of which are already being implemented.This constituted 37.2 percent of GCFs global portfolio.30Nevertheless,more investment is required.Significant potential exists for investors to invest in renewable energy technologies in Angola.Angolas 2025 goal is to provide mod

151、ern electricity to approximately 60 percent of its population,and the country has approximately US$18 billion of renewable energy investments underway as part of that strategy.31 The new Angolan government is taking steps to enhance the countrys attractiveness for foreign direct investment,including

152、 reforming its legislative framework to attract funding from the International Monetary Fund and other multilateral investment organizations.According to the African Development Bank Groups estimate,Angola has substantial opportunity to develop solar power and wind power,as well as huge hydropower p

153、otential:18.2 GWs,of which currently only 20 percent is being utilized.32Morocco is another example of an African country taking active steps to enhance investment in renewable energy projects.Morocco is liberalizing its renewables sector,including by increasing the minimum threshold for hydropower

154、plants from 12 MWs to 30 MWs and by establishing the Moroccan Agency for Solar Energy to carry out programs for solar energy generation for up to 2,000 MWs.33 The country has also begun projects to amend its renewable energy law.34Figure 3:The location and energy potential of African renewable energ

155、y resources in selected African countries(terawatt hours)South AfricaRwandaBurundiZimbabweBotswanaSudanEthiopiaUgandaKenyaDjiboutiEgyptLibyaTanzaniaMozambiqueMalawiCongo(DRC)AngolaNamibiaZambiaLesothoSwazilandWindResource qualityW/m2 400South AfricaRwandaBurundiEthiopiaUgandaKenyaDjiboutiEgyptLibyaT

156、anzaniaMozambiqueMalawiCongo(DRC)AngolaNamibiaZambiaLesothoSwazilandSouth AfricaRwandaBurundiEthiopiaUgandaKenyaDjiboutiEgyptLibyaTanzaniaMozambiqueMalawiCongo(DRC)AngolaNamibiaZambiaLesothoSwazilandSolarphotovoltaicResource qualitykWh/m2d 6.5Concentratedsolar powerResource qualitykWh/m2d 7.2SudanSu

157、danZimbabweZimbabweBotswanaBotswanaSource:UC BerkeleyUS$1 trillionneeded over the next 20 years to meet Africas power demand.15Africa FocusInvestor confidence is recovering in Zimbabwe under President Mnangagwas administration.Opportunities exist in many industry sectors for both developers and fina

158、nciers,particularly in renewable energy,although they should take care to minimize investment risks,especially where regulatory reform is at an early stage.Additional attention to marketing investment opportunities in African renewable energy is key to mobilizing these projects.African governments a

159、lso need to continue to improve their ability to attract financing for these crucial projects by improving their regulatory and political frameworks,creating a stable environment for funding institutions and investors to undertake projects,and becoming more environmentally sustainable in the long ru

160、n.Regulatory frameworks are an important lever for developing the renewable energy sector in Africa.Regulatory reforms have been the first step in the reform process for most African countries,through the creation of an electricity regulatory authority.In addition,establishing an independent regulat

161、ory authority can create a level playing field for producers,consumers and private operators in the renewable energy sector through clear rules and mechanisms for supervising the sector and cost-reflective tariffs for utilities.35Many countries have extensive legislative movements.For example,Gabon

162、initiated legislative reforms to develop codes related to its water and electricity sectors,in order to take into account challenges related to climate change and Gabons international commitments,by promoting clean and renewable energy.36 Senegal is considering a new Electricity Code,which could fac

163、ilitate universal access to electricity by 2025 by creating a reference framework that takes into account energy conservation,rural electrification and renewable energy.37 Malis government supports several projects whose expected or evaluated impacts will contribute significantly to achieve objectiv

164、es of the SEforALL Action Agenda.38 The World Bank largely supports Malis efforts to promote the use of renewable energies and to improve access to quality electricity services in rural areas.39 And in order to achieve the renewable energy objectives,a smart grid revolution is underway in Ivory Coas

165、t.These new technologies should allow the country to take a major step forward in terms of energy by focusing on renewable energies.40 Despite the number of projects being commissioned and the number of initiatives currently underway across Africa,the continent is still nowhere near bridging its gen

166、eration deficit.As current demands are met,demand for electricity across the continent Figure 4:Africas use of renewables is expected to significantly displace biomass as an energy source by 2030,compared to 201320132030 50%Firewood (used in efficient cookstoves)10%Residue(industry)4%Charcoal (used

167、in efficient cookstoves)1.5%Solar thermal1.2%Ethanol(used in cookstoves)1%Briquettes(used in cookstoves)43%Firewood (used in efficient cookstoves)7%Solar thermal 5%Charcoal (used in efficient cookstoves)4%Residue(industry)2%Briquettes(used in cookstoves)1%Ethanol(used in cookstoves)HeatPower 28%Hydr

168、opower 3%Biomass power 1%Wind 1%Geothermal power0.2%CSP 14%Hydropower 11%Wind5.6%CSP 4%Solar PV 2%Biomass power 1%Geothermal powerHeatTransport 2%Biofuels transportPower68%Heat32%Power61%Heat37%Power2%Transport1.1 EJ/hyrModernrenewableenergy9 EJ/hyrModernrenewableenergy11.8 EJ/yrTraditionaluse ofbio

169、mass4 EJ/yrTraditionaluse ofbiomassSource:International Renewable Energy Agency(IRENA)(2015),Africa 2030:Roadmap for a Renewable Energy Future.IRENA,Abu Dhabi.www.irena.org/remapEJ/yr=Exajoules per year(1 Exajoule=1018 joules of energy)16White&Casecontinues to grow.With African states recognizing th

170、eir renewable energy generation capacity and taking action to implement the necessary reforms to make foreign investment possible,opportunities for investment in Africa will continue to expand.Progressive regulatory reforms,especially establishing independent power producer programs,would accelerate

171、 that momentum.Attractive investment returns coupled with steadily decreasing risk profiles suggest that Africa will continue to attract investment into its renewable energy sector in the coming years.1 Obonyo R.,Push for renewables:How Africa is building a different energy pathway,Africa Renewal,6

172、January 2021.Accessed at https:/www.un.org/africarenewal/magazine/january-2021/push-renewables-how-africa-building-different-energy-pathway on 10 August 2021.2 Obonyo R.,Energies renouvelables:comment lAfrique construit une voie nergtique diffrente,Nations Unies,6 janvier 2021.Consult sur https:/www

173、.un.org/africarenewal/fr/magazine/janvier-2021/energies-renouvelables-comment-lafrique-construit-une-voie-%C3%A9nerg%C3%A9tique le 15 juillet 2021.3 Africa commits to cut 32%of emissions by 2030,Africa News,23 April 2021.Accessed at https:/ 10 August 2021.4 International Energy Agency,Africa 2030:Ro

174、admap for a Renewable Energy Future,p.6.Accessed at https:/www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA_Africa_2030_REmap_2015_low-res.pdf.5 Okonjo-Iweala,N.2020.Africa can play a leading role in the fight against climate change.In:Chapter 4-Combatting Climate Change:An urgent cal

175、l for comprehensive global and local action.In:Foresight Africa 2020 report.Brookings Institute.6 International Energy Agency,Africa Energy Outlook 2019.Accessed at https:/www.iea.org/reports/africa-energy-outlook-2019 on 26 July 2021.7 International Energy Agency,SDG7:Data and Projections,Access to

176、 electricity.Accessed at https:/www.iea.org/reports/sdg7-data-and-projections/access-to-electricity on 26 July 2021.8 International Energy Agency,SDG7:Data and Projections,Access to clean cooking.Accessed at https:/www.iea.org/reports/sdg7-data-and-projections/access-to-clean-cooking on 26 July 2021

177、.9 International Energy Agency,SDG7:Data and Projections,Access to clean cooking.Accessed at https:/www.iea.org/reports/sdg7-data-and-projections/access-to-clean-cooking on 26 July 2021.10 Wu G.C.,Deshmukh R.,Ndhlukula K.,Radojicic T.,Reilly-Moman J.,Phadke A.Kammen,D.M.and Callaway D.S.(2017).Strat

178、egic siting and regional grid interconnections key to low-carbon futures in African countries.PNAS April 11,2017.114(15)E3004-E3012;published ahead of print March 27,2017.Accessed at https:/europepmc.org/article/med/28348209 on 26 July 2021.11 United Nations Treaty Collection.Accessed at https:/trea

179、ties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XXVII-7-d&chapter=27&clang=_en.12 IPP Renewables.Accessed at https:/www.ipp-renewables.co.za/on 26 July 2021.13 GET FiT Uganda,Annual Report 2020.Accessed at https:/www.getfit-uganda.org/annual-reports/on 26 July 2021.14 NS Energy,Batoka Gorge H

180、ydroelectric Power Station.Accessed at https:/ 26 July 2021.15 GET.invest,Zimbabwe Energy Sector,27 December 2019.Accessed at https:/rise.esmap.org/data/files/library/zimbabwe/Documents/Energy%20Access/Zimbabwe_Get%20invest%20tariffs%20website.pdf on 26 July 2021.16 Hwange Power Station 65%complete

181、despite substantial delays,ESI Africa,21 May 2021.Accessed at https:/www.esi- 26 July 2021.17 NS Energy,Kariba South Power Station.Accessed at https:/ 26 July 2021.18 Kazunga O.,Hwange power station expansion contractor on site,Chronicle,1 May 2018.Accessed at http:/www.chronicle.co.zw/hwange-power-

182、station-expansion-contractor-on-site/on 26 July 2021.19 Peoples Dam Impounded,GERD-Locked Diplomacy,and Egypts Red Line for a Non-Deferent Ethiopia,Geopolitics Press,22 July 2021.Accessed at https:/www.geopolitics.press/gerd-electricity-export-tailrace-penstock-nis-kdf/on 26 July 2021.20 Internation

183、al Hydropower Association(Undated),Ethiopia-Grand Ethiopian Renaissance Dam(GERD).Accessed at https:/www.hydropower.org/sediment-management-case-studies/ethiopia-grand-ethiopian-renaissance-dam-gerd on 26 July 2021.21 US AID,Mozambique Power Africa Fact Sheet.Accessed at https:/www.usaid.gov/poweraf

184、rica/mozambique on 26 July 2021.22 International Energy Agency,Morocco Renewable Energy Target 2030.Accessed at https:/www.iea.org/policies/6557-morocco-renewable-energy-target-2030 on 26 July 2021.23 UPDATE 1-Renewables hit 90%of Kenyan power with new 50 MW solar plant,Reuters,13 December 2019.Acce

185、ssed at https:/ on 26 July 2021.24 Aglionby J.,Kenya shows renewables scope to plug Africas power supply gaps,Financial Times,23 May 2017.Accessed at https:/ on 26 July 2021.25 Hirtenstein A.,Renewable energy projects worth$1bn destined for West Africa,Business Live,8 June 2018.Accessed at https:/ww

186、w.businesslive.co.za/bd/world/africa/2018-06-08-renewable-energy-projects-worth-1bn-destined-for-west-africa/on 26 July 2021.26 African Development Bank Group,Estimating Investment Needs for the Power Sector in Africa 2016-2025,September 2019.Accessed at https:/www.afdb.org/en/documents/estimating-i

187、nvestment-needs-power-sector-africa-2016-2025 on 26 July 2021.27 African Development Bank,The New Deal on Energy for Africa:A transformative partnership to light up and power Africa by 2025.Accessed at https:/www.afdb.org/en/the-high-5/light-up-and-power-africa-%E2%80%93-a-new-deal-on-energy-for-afr

188、ica on 26 July 2021.28 World Bank,A Plan to Spur Climate Resilient Infrastructure in Africa,9 December 2015.Accessed at http:/www.worldbank.org/en/news/feature/2015/12/09/a-plan-to-spur-climate-resilient-infrastructure-in-africa on 26 July 2021.29 The World Bank,World Bank Group Provides$465 Million

189、 to Expand Energy Access and Renewable Energy Integration in West Africa,10 June 2021.Accessed at https:/www.worldbank.org/en/news/press-release/2021/06/10/world-bank-group-provides-465-million-to-expand-energy-access-and-renewable-energy-integration-in-west-africa on 26 July 2021.30 Green Climate F

190、und,July 2021,GCF Spotlight:Africa.Accessed at https:/www.greenclimate.fund/document/gcf-africa-factsheet on 10 August 2021.31 Sector briefing:Doing business in Angola 2018.Accessed at http:/www.angola.doingbusinessguide.co.uk/the-guide/sector-briefings/on 26 July 2021.32 African Development Bank Gr

191、oup,Angola Renewable Energy Program-Enabling Environment-SEFA Appraisal Report,21 December 2020.Accessed at https:/www.afdb.org/en/documents/angola-angola-renewable-energy-program-enabling-environment-sefa-appraisal-report on 26 July 2021;International Hydropower Association,Country Profile Angola.A

192、ccessed at https:/www.hydropower.org/country-profiles/angola on 26 July 2021.33 MASEN Brochure.Accessed at https:/www.masen.ma/themes/custom/masen/assets/files/Brochure_Fiches_Fr.pdf on 26 July 2021.34 Mourahib M.,nergies renouvelables au Maroc:une rforme attendue par les oprateurs,Clifford Chance,F

193、vrier 2020.Consult sur https:/ Banque Africaine de Dveloppement,Revue des rformes du secteur de llectricit en Afrique,25 septembre 2019.Consult sur https:/www.afdb.org/fr/documents/revue-des-reformes-du-secteur-de-lelectricite-en-afrique le 15 juillet 2021.36 Dzonteu D.,Eau&lectricit:Des rformes pou

194、r libraliser le secteur et amliorer le service,Gabon Review,31 dcembre 2020.Consult sur https:/ 15 juillet 2021.37 Agence Ecofin,Sngal:deux lois pour le secteur de llectricit en tude lAssemble nationale,11 juin 2021.Consult sur https:/ le 15 juillet 2021.38 Ministre de lEnergie et de lEau,Prospectus

195、 dinvestissement de lnergie durable pour tous SeforAll du Mali,Mai 2019.Consult sur https:/www.se4all-africa.org/fileadmin/uploads/se4all/Documents/Country_AAs/PI_SEforALL_MALI.pdf le 15 juillet 2021.39 Banque Mondiale,Mali:la Banque mondiale appuie lamlioration de laccs aux nergies renouvelables,29

196、 juillet 2019,Consult sur https:/www.banquemondiale.org/fr/news/press-release/2019/12/12/world-bank-supports-improved-services-for-peace-and-security-in-mali le 15 juillet 2021.40 La Cte dIvoire mise sur les nergies renouvelables,La Tribune Afrique,17 dcembre 2019.Consult sur https:/afrique.latribun

197、e.fr/entreprises/la-tribune-afrique-de-l-energie-by-enedis/2019-12-17/la-cote-d-ivoire-mise-sur-les-energies-renouvelables-835377.html le 15 juillet 2021.17Africa FocusM&A transaction terms:Comparing Africa to Europe Significant differences exist between terms that typically apply in M&A transaction

198、s in Africa and EuropeBy Kenneth Barry,Gary Felthun,Oji Adoh and Shannon NeillAlthough the underlying fundamentals of M&A transactions in Africa and Europe are essentially similar,significant differences exist.These reflect how the respective markets have developed and continue to develop,as well as

199、 investors risk appetites in light of where they source funds.Acquirers tend to view European markets as more seller-friendly than African markets.A range of geo-economic and socio-political factors underpin this perception,including that a wider variety of purchaser protections are typically open t

200、o negotiation in African markets.This applies to both public and private investments but can be especially significant to private equity(PE)investors.One of the key drivers behind the development of a more seller-friendly market in Europe is the impact that PE has had on the broader European market.

201、A longer track record of PE transactions exists in Europe,and PE sellers have taken more aggressive stances to minimize deal conditionality and transaction tail risk.This has influenced non-PE sellers,who have begun adopting PEs approach to exits.Access to cheap credit and significant amounts of ava

202、ilable dry powder have also contributed to a seller-friendly market for private investors in Europe.This stands in marked contrast to African markets,where exits have been difficult to achieve,particularly in the PE space.European M&A and PE investments dwarf those of African markets.Still,Africa re

203、presents good opportunities for investors that understand the market realities and can mitigate risks.PE deal value for targets in Africa contracted sharply following the end of the commodity boom,from a record US$12.02 billion in 2014 to just US$1.44 billion in 2017.With the onset of the COVID-19 p

204、andemic,2020 saw such transactions contract further,to just US$1.25 billion.1History teaches us that when deal activity is depressed through external influences,and those influences dissipate,then a period of buoyant deal flow typically follows.In Africa,even though emerging from the COVID-19 pandem

205、ic is taking longer than in Europe,a recovery in deal flow is expected soon,hopefully persisting into 2022 and 2023.2This article outlines some of the key differences between M&A transactions that are implemented in Africa and those that are implemented in Europe.CONDITIONALITYIn European deals,the

206、only conditions typically included in transaction documents are for mandatory regulatory filings(such as those relating to antitrust).In Africa,conversely,deals tend to be far more conditional.Provisions frequently include:Material adverse change clauses,which allow the buyer(but also sometimes the

207、sellers)to walk away from the deal upon the occurrence of certain specified future events that would have a material impact on the business and/or its valuation The ability of buyers to walk away from a deal in the event of the breach of material terms,including gap controls or warranties given on t

208、he signature date Change-of-control conditions,where counterparties to key contracts are required to consent to the implementation of the deal as required in terms of the underlying agreementsIn addition,in African markets,obtaining regulatory approvals is far more unpredictable in terms of timing a

209、nd,to a lesser extent,outcome.For example,ministerial consents are often required to implement mining transactions.In South Africa,it can take three to 12 months(or even longer)to receive this consent.Antitrust approvals in a number of African jurisdictions can take similarly long periods to be gran

210、ted.The parties should bear this in mind when drafting transaction documentation,and ensure that a sufficiently long time period is provided to obtain these approvals.Otherwise,they run the risk that the deal will fail due to not obtaining approvals within the prescribed time period.LOCKED BOX VS.CO

211、MPLETION ACCOUNTSLocked box mechanismswhere there is a fixed price based on financial accounts prepared prior to completion,with no post-completion Conveyor belts feed broken rock into two different stockpiles(oxides and sulphides)at an open-pit copper mine in Zambia,Africa.Acquirers tend to view Eu

212、ropean markets as being more seller-friendly than African markets.18White&Caseadjustmentare standard in European deals.In African deals,though,the picture is much more mixed.These deals use both completion accountswhere an estimated price is agreed pre-completion,with post-completion accounts prepar

213、ed and the transaction consideration adjusted accordinglyand locked box mechanisms.SCOPE OF WARRANTIESThe scope of warranties provided differs from deal to deal,regardless of where transactions take place.They are also affected by risk appetite of the parties involved.Still,the warranty protections

214、offered by sellers to purchasers does differ between Africa and Europe.Generally,it is common in both Africa and Europe for a broad range of substantive warranties to be offered across most relevant business areas.However,African deals between parties based on the continent focus less on anti-money

215、laundering(AML)and anti-bribery and corruption(ABC)issues,whereas foreign investors investing into the continent usually seek strong warranty protection in these areas,as well as general compliance with law warranties.This is usually a result of foreign investors fund requirements and well-establish

216、ed internal compliance teams.In European deals,it is rare that PE sellers offer any warranties other than those relating to title and capacity,with the sellers who are also members of management giving broader,business-related warranties.The typical rationale is that PE investors are not involved in

217、 the day-to-day running of businesses and therefore are not in a position to give substantive,business-related warranties.However,in African deals,it is not uncommon for PE investors to offer limited business warranties in addition to basic title and capacity warranties.LIMITATIONS ON LIABILITY AND

218、WARRANTY,AND INDEMNITY INSURANCEIn Europe,a sellers financial liability with respect to warranties is usually capped at 10 to 25 percent of the total transaction consideration.However,this is far from standard in African deals,where a sellers financial liability with respect to Communications tower

219、silhouette,South Africa20White&Casewarranties is typically far more extensive.The applicable financial cap is usually 50 percent or more of the total transaction consideration and,in some occasions,is even 100 percent of the total transaction consideration.A similarity in both African and European d

220、eals are the financial thresholds before a purchaser can bring a claim with respect to warranties.Generally,the de minimis and basket thresholds are 0.1 percent and 1 percent of transaction consideration.In addition,the time periods within which a claim can be brought are similar:12 to 24 months for

221、 breaches of business warranties or other claims under a sale,and purchase agreement and seven years for breaches of tax warranties.Warranty and indemnity(W&I)insurance is commonly used in European deals,particularly in PE.W&I insurance allows sellers to exit divestments cleanly with limited tail li

222、ability and allows purchasers to claim against insurers.W&I insurance is less common in African deals,but it is becoming increasingly more prevalent for PE sellers,particularly in South Africa.However,insurers typically charge higher premiums with African deals(2 to 3 percent of consideration compar

223、ed to approximately 1 percent in European deals),and they exclude ABC from the scope of the W&I policies.EXITSIn the African and European markets,exits most commonly take place through auction processes,resulting in sales to either trade buyers or financial sponsors.Exits occasionally also take plac

224、e through bilateral negotiations between two parties.However,exits in the form of a listing or initial public offering are rare in Africa,while public M&A markets are more active in Europe.CONCLUSIONOn the whole,the M&A market in Africa is generally more buyer-friendly than the market in Europe,part

225、icularly in the PE space.In Africa,unlike Europe,PE sellers are often expected to provide general business warranties,and the limit on the financial liability of sellers for breach of warranty is far higher.This makes it more difficult for PE sellers to make a“clean exit”from an African deal,althoug

226、h it is becoming easier to do so with the increasing prevalence of W&I insurance on the continent.In addition,unlike in Europe where seller-friendly locked box mechanisms are the norm,African deals frequently use completion account mechanisms as well.At the same time,there is less deal certainty wit

227、h African deals,compared to deals in Europe.Some of this conditionality works to the benefit of buyers,such as material adverse change conditions and walkaway rights.1 White&Case M&A Explorer.2 El Fihri,S.,Omary,O.,Nielsen,J.,Dupoux,P.and Bour,A.(2021)Whats new and next for M&A in Africa.Boston Cons

228、ulting Group at https:/ See White&Case Merger Explorer.4 AVCAs 2020 Annual African Private Equity Data Tracker.5 See White&Case Merger Explorer.6 African Private Equity and Venture Capital Association(2021)Sector Snapshot:Technology.7 The Africa Report,2020.Tech Hubs Across Africa to Incubate the Ne

229、xt Generation.8 Based on the ITU WTI Database,December 2020 edition.IN H1 2021,AFRICAN TELECOMMUNICATIONS,MEDIA AND TECHNOLOGY(TMT)DEAL FLOW BY VALUE OVERTOOK ENERGY,MINING AND UTILITIES,MEASURED BY DEAL VALUEGlobal M&A deal value targeting African investments expanded by 131 percent during 2009 201

230、5,but then contracted by 19 percent during 2016 2020.3 In 2020,investments in technology-enabled companies accounted for 55 percent of the overall deal volume recorded in Africa,overtaking the energy,mining,utilities and consumer sectors.4 US$16.06 billion was invested in TMT deals in Africa from 20

231、16 to 2021(YTD).5 While technology-focused funds represented 2 percent of the total value of final closed PE and venture capital funds in Africa in 2015 2017,this had increased to 7 percent by 2018 2020.6 Factors that have proved important to attract deal flow over the years include natural resource

232、s,gross domestic product size and growth,financial market maturity,urban agglomeration and regulatory considerations.This has tended to concentrate deal flows in South Africa,Kenya,Nigeria and North Africa.Interestingly,though,recent M&A in the TMT sector involves a wider spectrum of countries.Ethio

233、pia stands out,following Prime Minister Abiy Ahmeds initiatives to liberalize various sectors of the economy,including the telecommunications sector.Rwanda is also noteworthy for its Kigali Innovation City,a multi-purpose knowledge and innovation hub established in the countrys capital.The number of

234、 technology hubs in Africa is growing rapidly,from 442 in 2018 to 643 in 2020.7Mobile tower networks are also expanding rapidly across the continent.Africa reached 33.1 active mobile broadband subscriptions per 100 inhabitants in 2019,far behind the world average of 75 per 100 inhabitants.On the oth

235、er hand,active mobile broadband subscription rates per 100 inhabitants in South Africa,Ghana,Gabon,Seychelles,Botswana,Mauritius and Cabo Verde exceed the global average.Twelve African countries already have greater mobile telephone penetration than the global average,and in some of the lagging coun

236、tries,subscriptions are growing rapidly.Global technology giants are investing in African digital infrastructure assets,especially data centers and cloud projects.8 Investment into a wide range of digital sub-sectors is likely to continue as Africas digital transformation unfolds.This expansion of t

237、he TMT sector across Africa creates potential for digital dividends in other industries,too,in turn creating further attractive investment opportunities.21Africa FocusAfrican M&A stages a comeback H1 2021 dealmaking within the continent appears to be turning a cornerBy Kenneth Barry,Mukund Dhar,Gary

238、 Felthun and Lionel ShaweLast year was a challenging one for M&A in Africa,with both deal value and volume dropping to their lowest figures on record.Yet 2021 has shown signs of a resurgence,with H1s total of 87 deals marking a 15%increase compared to H1 2020.Deal value shot up to US$56.7 billion in

239、 the first half of the year,largely thanks to the US$46.1 billion share swap agreement between South African multinational Naspers and its Dutch-listed investment unit Prosus.The deal pushed African deal value to its highest H1 total on record.Even without the Naspers deal,H1 2021 deal value would s

240、tand ahead of 2020s record low annual total of US$9.7 billionhighlighting a renewed sense of confidence among dealmakers.SOUTH AFRICA STORMS AHEADSouth Africa continued to be the most active country for dealmaking,in terms of both value and volume.A total of 41 deals in South Africa worth US$46.56 b

241、illion were announced during the first half of the yearalready higher than any annual value total on Mergermarket record(since 2006).Deal value was pushed up due to the highest-valued deal of the yearProsus acquisition of a 45.4%stake in Nasperswhich was the highest-valued deal targeting a South Afr

242、ican firm on Mergermarket record.The deal between Naspers and its Dutch-listed investment unit was structured via a share swap agreement,in a move aimed to reduce the impact of its 29%holding in Chinese internet giant Tencent on local financial markets.Johannesburg sunrise with telkom communications

243、 tower cityscape2021 has shown signs of a resurgence in deals in Africa.Figure 1:M&A activity:Top sectors by volume Q1 2021 Q2 202105101520Energy,mining and utilitiesTMTFinancial servicesIndustrials and chemicalsConsumerBusiness servicesPharma,medical and biotechTransportationLeisureReal EstateM&A v

244、olume(No.of deals)Source:White&Cases M&A ExplorerTarget location:Africa Bidder location:Global Sectors:All22White&CaseCopper rock24White&CaseWhile the Naspers deal stood far above the rest of the pack in terms of value,deal volume also saw an uptick year-on-year,reflecting a strong foundation of act

245、ivity in the South African deal market.A total of 41 deals were announced during H1 2021an increase of six deals year on year.Telecommunications,media and technology(TMT)was the most active sector for South African dealmaking,with a total of 10 deals recordedalmost overtaking the 11 deals announced

246、throughout the whole of 2020.South African TMT deal activity had been on the rise before COVID-19 hit,reaching a peak of 24 deals in 2019.H1s activity is a promising sign of the beginning of a potential dealmaking resurgence.The highest-valued South African TMT deal in H1 was Volaris Groups US$88 mi

247、llion acquisition of software and IT firm Adapt IT.The Canadian software group was forced to increase its offer following competition from rival suitor Huge Group,a South African telecommunications firm.ENERGY,MINING&UTILITIES DEALMAKING BOUNCES BACKEnergy,mining and utilities(EMU)dealmaking display

248、ed an impressive rebound in the first half of the year.The sector generated the highest number of deals in Africa across all sectors,with a total of 24 announced dealsup by 14 year on year.A total deal value of US$5.8 billion,meanwhile,has already overtaken 2020s annual figure of US$2.6 billion.Perf

249、ormance was boosted by some big-ticket domestic tie-ups,including Zambia Consolidated Copper Mine(ZCCM)s acquisition of a 90%stake in the Mopani copper mines owned by Swiss mining giant Glencore.Global demand for copper is rising,with the metal trading at over US$8,000 per ton,according to reports.D

250、emand is being driven by decarbonizationthe boom in electric vehicles(EVs)has boosted the need for copper as the metal is used widely in EV production.Another EMU deal to make the top five of the year was Eni,Shell and Total E&Ps US$800 million sale of a 45%stake in oil mining lease(OML)17 to Nigeri

251、an investment company Heirs Holding and its affiliate Transnational Corp.OVERSEAS DEALMAKERS TURN TO AFRICAInbound interest in African assets dropped to a record low in 2020 as the COVID-19 pandemic put deals on hold across the globe.There are signs that international confidence in African deals is

252、on the rise.A total of 46 cross-border deals took place in H1an increase of 12%year on year.While the Prosus/Naspers deal ensured that the Netherlands was on top in terms of deal value,the UK topped the volume table chart,having been involved in seven deals valued at US$1.24 billion during the first

253、 half of the year.The largest of these deals was Cairn Energy Plc and Cheiron Petroleum Corporations purchase of Shells Egypt-based upstream oil and gas assets,valued at US$646 million.OUTLOOKDealmaking within the continent was undeniably hit hard by the global pandemic.Many dealmakers who would hav

254、e previously viewed Africa as a growth opportunity were suddenly forced to grapple with extreme logistical challenges and unprecedented economic uncertainty.Now dealmaking within the continent is on the rise,with international interest in Africas energy and mining assets a promising sign of things t

255、o come.Domestic tie-ups are also a sign of growing confidence,as local firms look to take advantage of high-growth assets.Dealmaking on the continent is on the rise,with international interest in Africas energy and mining assets a promising sign of things to come.25Africa FocusUS government agencies

256、 focus on Africa Africa is a priority for several Biden administration agencies working in development finance By Martin Menski and Suzanne PerryThis article examines recent initiatives by US government agencies to strengthen their presence in African markets.A broad array of US agencies actively su

257、pport the development and financing of large energy and infrastructure projects in Africa(see Table 1).This article focuses on the United States International Development Finance Corporation(DFC),the US lead development finance agency,and the Export-Import Bank of the United States(EXIM),the US lead

258、 export credit agency,in supporting private sector investment in Africa.RECENT US AGENCY INITIATIVESAfrica is a priority for a number of different US government agencies working in development finance.In particular,DFC and EXIM have undertaken various initiatives to build their presence and offering

259、s in Africa.As of the end of 2020,DFC had invested approximately US$8 billion(approximately 25 percent of its total portfolio)across more than 300 projects on the continent.These investments include building critical infrastructure;expanding access to healthcare,energy and technology;and advancing f

260、inancial inclusion,particularly for small businesses and women entrepreneurs.Africa is also the focus of multiple DFC initiatives,including Connect Africa,2X Africa and the Health and Prosperity Initiative.In the past two years,DFCs deal-making capabilities in Africa have improved in multiple ways:1

261、.The BUILD Act provided DFC with new capabilities for equity investments and for partnering with other US agencies to provide technical assistance.DFCs predecessor,the Overseas Private Investment Corporation(OPIC),provided mainly senior debt products and political risk insurance,both of which were w

262、ell suited to relatively mature companies and projects that can provide immediate cash flow for repayment.OPIC nonetheless found ways to help entrepreneurs and early-stage innovators,including through loans to investment funds(which,in turn could invest in innovative companies)and the Portfolio for

263、Impact,which allows smaller and higher-risk loans for highly developmental projects.DFC has continued these programs,and now can also provide technical assistance to scope out and test innovative ideas,and provide equity,to help a company get on its feet.2.DFC and its peer agencies have increased th

264、eir collaborations,lately driven by COVID-19 concerns.Historically deal-sourcing in Africa has been a challenge,with development finance institutions(DFIs)from various countries pursuing a limited number of high-quality infrastructure and energy projects.However,during the COVID-19 crisis,DFC began

265、meeting weekly with peer DFIs to coordinate approaches and leverage their combined resources,with concrete results.Evidence of DFC and European DFIs working together include transactions arranged by the International Finance Corporation(IFC,the private sector arm of the World Bank Group)and DFC on-l

266、ending to Africa Finance Corporation(AFC),an Africa-based multilateral,to tackle-infrastructure deficits on the continent.This partnership combines DFC funding with AFCs regional know-how and builds on the collaborative approach the two agencies have taken in the past,including to help source deals

267、for the Power Africa initiative.3.DFC has increased its on-the-ground presence through the Africa Investment Advisors Program.DFC deploys regional officers across Africa to provide a local presence for deal origination.Meanwhile,the agency continues its efforts to better pursue a“whole government”ap

268、proach,building on the past decades work with other US agencies,such as Millennium Challenge Corporation(MCC),US Agency for International Development The Modern Architechture of the Marrakech International AirportAfrica is a leading priority for a number of different US government agencies working i

269、n development finance.26White&Caserailways,ports and airports.4 One notable project is a recent US$100 million loan to Africell to increase mobile phone and internet service in the Gambia,Sierra Leone,Uganda and the Democratic Republic of the Congo.5 2X AfricaDFC seeks to catalyze US$1 billion of in

270、vestment in projects that are owned by,led by or provide a product or service that empowers African women.6 Notable projects include loans that help small-holder farmers(more than half of whom are women)improve their yields,insure their crops,bring products to market and increase resilience in the f

271、ace of climate change and the COVID-19 crisis.Health and Prosperity InitiativeThrough its Health and Prosperity Initiative,the agency is working to invest US$2 billion worldwide in projects that bolster health systems,support infrastructure development and expand access to clean water,sanitation and

272、 nutrition.7 Examples include a US$781,000 guarantee for Embu Water and Sanitation to improve the water supply for 100 schools,15 clinics and 50,000 people in rural Kenya,8 a US$5 million loan for dialysis centers across East Africa,9 loans for entrepreneurial companies supporting innovations in vac

273、cine distribution10 and multi-lender-supported facilities to support medicine production.EXIMEXIM is the export credit agency(ECA)for the United States.Its mission is to support US jobs by financing the export of goods and services from the US to international markets.During 2009 2019,EXIM supported

274、 US$12.4 billion of transactions to sub-Saharan Africa,11 and the region is home to EXIMs largest commitment to date.Moreover,EXIM is a long-time player in Africa,with experience dating back to the 1940s.The agency is currently open for business in 44 of the 49 countries across sub-Saharan Africa.It

275、s products include export credit insurance,working capital loans and term loans.(USAID)and US Trade and Development Agency(USTDA),including in the Power Africa initiative.1 More recently,DFCs Chief Development Officer,a veteran of the Power Africa program,has coordinated closely with US embassy and

276、consular staff to connect town halls with business leaders across Africa.2 These programs raise awareness of DFCs activities and provide the agency with insights into local financing needs.4.DFC has refocused its priorities to encompass not only lower-and lower to middle-income countries but also se

277、ctors that show great potential across the continent.These include healthcare,information,communications&technology,off-grid energy and women-led investments.As a result,Africa is the focus of multiple DFC initiatives,including:Connect AfricaThrough Connect Africa,DFC seeks to invest US$1 billion to

278、 strengthen connectivity to further Africas integration with the global economy.Areas of focus include telecommunications and internet access,3 value chains that connect producers of raw materials with end-users and essential infrastructure such as roads,DFIS AND ECAS AS TOOLS OF STATECRAFT Developm

279、ent finance institutions(DFIs)and export credit agencies(ECAs)are“soft power”tools of global influence with differing missions.A DFIs goal is to support economic development in countries that face challenges.Their results are evaluated not only on their ability of investments to return capital but a

280、lso on the way in which the investments strengthen the target countrys economy.An ECAs goal is to support job growth in the agencys home country by providing financing support for exports(in this case exports into Africa).In 2020,ECAs provided US$35.3 billion in overall lending for projects in Afric

281、a.Notably,both DFI and ECA financing in Africa have increased financing for water and sanitation,healthcare and hospitals,and green loans.The Mohammed VI Bridge28White&Case29Africa FocusTable 1:US agencies active in AfricaAgency and functionKey capabilitiesExport-Import Bank of the United States(EXI

282、M)Assists in the financing of US goods and services to international marketsIssues fixed-rate financing to credit-worthy international buyers in both the private and public sectorProvides loan guarantees for financiers of foreign buyers in the purchase of US capital equipment and servicesSupports ex

283、port credit insurance to cover risk of buyer non-payment for commercial risks(e.g.,bankruptcy)and certain political risks(e.g.,war or the inconvertibility of currency),US government support capabilities,project development,project structuring,project financing,post-financing support and policy refor

284、mMillennium Challenge Corporation(MCC)Partners with developing countries that are committed to good governance,economic freedom and investing in their citizens,to reduce poverty through economic growthIncreases access to electricity by investing up to US$1 billion in African power systems through MC

285、C grantsMotivates partner countries to implement regulatory,governance and utility reforms to improve the commercial viability of the power sectorProvides technical assistance and management support for ministries,regulators and utilitiesUtilizes country-led solutions and implementation to provide f

286、inancial support for energy infrastructure projectsUS African Development Foundation(USADF)Funds African-owned and managed enterprises,cooperatives and community-based organizations to build capacity and expand economic activitiesAwards grants for seed funding,capacity building and expansion of up t

287、o US$250,000 to catalyse groups for future growth by funding technical,managerial and organizational improvementsProvides due diligence research,project design and business planning,and monitoring and evaluation oversightThrough the Off-Grid Energy Challenge,in partnership with GE Africa,grants of u

288、p to US$150,000 are awarded to African-owned and managed organizations for off-grid solutions that deploy renewable resources and stimulate economic activity through productive uses of energy,including in vulnerable and displaced communities like refugee settlementsUS Agency for International Develo

289、pment(USAID)Provides targeted technical assistance,grants,program support and risk mitigation to advance specific development objectivesPosts transaction advisors in Power Africa countries to assist in advancing agreements between public and private sector partnersContributes to multi-donor funds su

290、ch as the African Unions Geothermal Risk Mitigation Facility,the African Legal Support Facility and the African Development Banks Sustainable Energy Fund for AfricaHelps governments adopt and implement policy,regulatory and other reforms necessary to attract private sector engagement in the energy a

291、nd power sectorsProvides technical assistance to support mission-led energy initiatives in Power Africa countriesUS Department of Agriculture(USDA)Promotes sound policies and provides technical assistance to support national and international agriculture,energy,environmental and trade issuesConducts

292、 assessments,reviews,capacity building and training for host-country governments,for the development and management of infrastructure including hydropowerUS Department of Commerce(Commerce)Facilitates global trade and strengthens the international economic position of the USAssists US companies in r

293、esearching and selecting overseas markets for export of goods and services by identifying market barriers and expanding the availability of trade financingProvides trade data and methodology to expand international sales and marketingIdentifies potential foreign agents,distributors,and buyers for US

294、 companiesCommercial Law Development Program Improves the legal environment for doing business in sub-Saharan Africa by serving as a resource for federal agencies,US businesses,foreign governments and foreign businesses on complex issues such as power purchase agreements(PPAs),project finance agreem

295、ents,and moreAdvocacy Center Coordinates US government interagency advocacy efforts on behalf of US exporters bidding on public sector contracts with overseas governments and government agencies30White&CaseAgency and functionKey capabilitiesUS Department of Energy(DOE)Provides technical expertise to

296、 US agencies and African governments to improve energy systems and help better meet emerging needsProvides technical expertise supporting the development and modernization of energy systems in developing countries,through both bilateral cooperation and multilateral initiativesProvides expertise in p

297、olicy planning,energy market analysis,energy system modeling,and technical analysis to incubate enabling environments that encourage US private sector investmentPromotes development and application of innovative energy technologies in Africa through collaboration with its National Laboratory system,

298、and helps move these technologies to commercializationUndertakes assistance for regulatory reform by fostering relationships between appropriate focus-country agencies and US national and state regulatorsUS Department of State(DOS)Advances the political and economic dialogue on transformational ener

299、gy policies through diplomacy,trade&investment-promotion services,technical assistance,partnerships and bilateral programsConducts diplomacy at all levels with host governments to advance legal,regulatory and institutional reforms that contribute to robust enabling environments to encourage private

300、sector trade and investmentEncourages good governance and revenue management,which leads to economic growth and attracts private sector investmentProvides technical assistance to support regulatory and legal reform through the Energy Governance and Capacity Initiative(ECGI)and promotes reliable and

301、affordable energy supply through power sector reform and development through the Power Sector Program(PSP)Increases electricity access in both urban and rural areas through on-and off-grid connections by promoting advances to the enabling environment through engagement with governments and utilities

302、Utilizes public diplomacy resources to highlight and share US expertise through in-person and virtual visits of Africans to the US and US experts to Africa to promote dialogue and sharing of best practicesUS Department of Treasury(Treasury)Works bilaterally and through multilateral institutions to p

303、romote policies and institutional capacity that lay the foundations for economic growth and financial sustainabilityProvides technical assistance to finance ministries and central banks to strengthen their ability to manage public finances and safeguard their financial sectors,including in the areas

304、 of budget,revenue,debt management,infrastructure finance and financial servicesLeads engagement with the World Bank,African Development Bank and the International Monetary Fund,which support countries to promote inclusive growth,poverty reduction,sound economic management,debt sustainability and go

305、od governanceUS International Development Finance Corporation(DFC)Provides financing and insurance for private companies developing projects in developing marketsProvides direct equity financing and support for investment fundsProvides direct loans and guarantees of up to US$1 billion for tenors of

306、as long as 25 years,with specific programs targeting small and medium-size US businessesProvides political risk insurance coverage of up to US$1 billion against losses due to currency inconvertibility,government interference and political violence including terrorism;also offers reinsurance to incre

307、ase underwriting capacityProvides feasibility studies and technical assistance to accelerate project identification and preparation,and to better attract and support private investment in development outcomesUS Trade and Development Agency(USTDA)Provides grant-based project planning assistance to mo

308、bilize capital for infrastructure in developing and middle-income countriesSupports feasibility studies and pilot projects to provide the required comprehensive analysis for major infrastructure projects to achieve successful financing and implementationOffers gap funding to support late-stage devel

309、opment needs,such as front-end engineering design,lenders due diligence and other components to move an infrastructure project to financial closeProvides technical assistance to support legal and regulatory reform related to commercial activities and infrastructure development,the establishment of i

310、ndustry standards and other market-opening activitiesHosts reverse-trade missions to the US for overseas project sponsors to observe the design,manufacturing,demonstration,and operation of American products and services that can help the officials achieve their development goalsOrganizes sector and

311、region-specific events to connect US firms with foreign buyers,highlight upcoming infrastructure projects overseas,and showcase US goods and services31Africa FocusPromptly following its re-authorization,EXIM approved two prominent deals in Africa.In March 2020,it approved a US$91.5 million transacti

312、on for electrification in Senegal.12 Two months later,the agency approved its largest transaction to date:a US$4.7 billion credit(direct loan)supporting exports of US goods and services with more than 60 US suppliers to assist the development and construction of an integrated liquefied natural gas p

313、roject on the Afungi Peninsula in northern Mozambique.13 EXIM made its commitment alongside those from almost 20 other ECAs and DFIs,which offered an aggregate of US$16 billion in loans.Africa also is a key to EXIMs program on Transformational Exports,which was established by law in December 2019 an

314、d provides the agency with tools to help US exporters compete more effectively with Chinese exporters.14 The programs aim is to support US innovation,employment and technological standards globally in ten transformational export industries,including artificial intelligence,5G,quantum computing,biome

315、dical sciences,biotechnology and renewable energy.The law charges EXIM with a goal of reserving at least 20 percent of the agencys total financing authority(i.e.,US$27 billion out of a total US$135 billion)for support made pursuant to the program.In announcing the Mozambique transaction described ab

316、ove,EXIM noted that this type of support was important to help counter Chinese and Russian influence in Africa.15 This program shows great promise.Its realization will require some adjustments though,notably a re-thinking of US content requirements that make it hard to support high-tech solutions,th

317、e value of which includes globally sourced computer code and know-how.Cloud computing,mobile payment solutions and similar technologies have great potential in Africa,as do technological advancements in energy storage and smart infrastructure.But it can be difficult Aerial view of roads amid forest

318、in Langeni,South Africa32White&Caseto properly value the role of US content in many of these projects.EXIM staff have been actively reviewing the agencys policies in this area,but they do not yet have high-level political appointees or board members in place,and bold action seems likely to take plac

319、e only once those milestones are achieved.Another challenge for EXIM is to source deals without a presence on the ground on the African continent.The agency overcomes this challenge by working closely with staff in US embassies,and EXIM plays a leading role in whole-of-government initiatives,includi

320、ng Prosper Africa and Power Africa.The agency also benefits from guidance from a sub-Saharan Africa Advisory Committee,made up of government and industry representatives with extensive experience in Africa.16 This committee meets two times a year to examine EXIMs programs and policies designed to su

321、pport the banks engagement in sub-Saharan Africa.CONTINUITY AND CHANGE:EVOLUTION OF AGENCY FOCUS UNDER THE BIDEN ADMINISTRATIONGiven the considerable changes taking place in US politics,it can seem as if every federal agencys outlook is bound to change significantly from one presidential administrat

322、ion to another.This would present a challenge for securing funding from US agencies for infrastructure in Africa,since it takes a good deal of time to develop any project.17Fortunately,both DFC and EXIM have shown continuity in their focus on African deals,with a gradual building of momentum and imp

323、rovement in inter-agency coordination from one recent administration to another.In particular,the Prosper Africa initiative during the end of President Trumps term built on,and did not supplant or replace the Power Africa initiative started under the Obama Administration.And all signs point to the B

324、iden administrations continued support for the principles underlying both of these programs and to the goal of better aligning various US agenciesincluding DFC,EXIM,USAID,the MCC,the USTDA and othersto address challenges in the region.Moreover,these agencies have demonstrated that they are reliable

325、partners in closing commitments that originated during a different prior administration.This trend continues today.The Biden administrations focus on climate change has ambitious goals,including DFC achieving net-zero by 2040.Unlike some peer DFIs and ECAs in Europe,both DFC and EXIM will likely con

326、tinue supporting some carbon-intensive projects,while seeking to increase investments in renewable energy and climate resilience.Recent statements from DFCs Chief Operating Officer suggest that the agency will continue to support,on a selective basis,highly developmental,high-quality fossil fuel-bas

327、ed projects through 2030,mostly in Africa.He also stated:Sub-Saharan Africa is not part of the climate problem.If you take the entire sub-Saharan African region,and you tripled electricity consumption tomorrow,and all 100 percent of that came from natural gas,sub-Saharan Africa would only contribute

328、 1.2 percent of global carbon emissions.gamers in California consume more electricity in a year than the entire country of Ethiopia consumes in a year.”18 This approach can be compatible with the International Energy Agencys much-heralded recent advice on the narrow path to net-zero,19 although it i

329、s not easy.This approach requires hard work.For example,calculating expected emissions over the future life of legacy projects as well as new ones can leave the agencies open to criticism from both ends of the political spectrum.Still,this balanced approach,coupled with the gradual building of momen

330、tum across multiple administrations toward investing in Africa,suggests that US agencies may play more of an active role in promoting industrial growth in Africa across a broader range of sectors than they did historically.1 https:/www.usaid.gov/powerafrica.2 COO David Marchick discussed this progra

331、m in his April 23,2021 debrief with the Center for Global Development.https:/www.cgdev.org/event/elevating-dfcs-climate-ambition-debrief-coo-david-marchick.3 Investments in mobile connectivity have important follow-on effects(see,e.g.http:/documents1.worldbank.org/curated/en/8875888/pdf/1

332、02955-WP-Box394845B-PUBLIC-WDR16-BP-Exploring-the-Relationship-between-Broadband-and-Economic-Growth-Minges.pdf)and this is particularly true in Africa,where mobile payments solutions have increased financial inclusion but availability is uneven and still out of reach in some of Africas poorest coun

333、tries and communities.See,e.g.,https:/ 400 million consumers in sub-Saharan Africa use mobile payment banking systems to handle US$300 billion worth of mobile money transactions).4 https:/www.dfc.gov/our-work/connect-africa.5 https:/www.dfc.gov/investment-story/expanding-mobile-connectivity-sub-saharan-africa-0.6 https:/www.dfc.gov/our-work/2x-womens-initiative.7 https:/www.dfc.gov/our-work/health