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September 9, 2007

World Bank Hopes to Light African Continent

World Bank Hopes to Light Continent
NEWS
7 September 2007
Posted to the web 7 September 2007

By Elizabeth Guthrie
Washington, D.C.
The World Bank hopes to bring affordable and environmentally-friendly lighting products to up to 250 million Africans by the year 2030.

The “Lighting Africa” program was officially launched as part of the World Bank’s Development Marketplace grant program this week.

More than 350 international and local companies have declared interest as possible partners in connecting more Africans to the power grid. The World Bank will support lighting companies’ efforts to replace kerosene lighting, a polluting and poor-quality light source, with the most cutting-edge compact fluorescent light (CFL) and light-emitting diodes technologies.

Although “Lighting Africa” promises to make energy costs lower, the lighting alternatives proposed also present a host of new concerns.

Not least among these are environmental issues. CFL light bulbs, when broken or improperly disposed of, emit mercury into the atmosphere and pollute the water supply.

World Bank leading energy specialist Anil Cabraal told allAfrica in an interview that companies are working to decrease mercury levels and improve the lifetime of CFLs.

Cabraal also said that as LED technology, commonly found in stop lights and cell phones, continues to improve, this technology “will likely become the main focus of the ‘Lighting Africa’ initiative.”

“We do not do the development [of products],” Cabraal said. “That is up to the industry. But what we can do is tell the industry what we are looking for and help condition the market.”

In the meantime, the World Bank aims to educate local lighting companies and communities on how to dispose of CFLs safely.

Cabraal explains that this initiative is not concerned with “incremental changes.” Rather, the bank wants to use new technologies to help entrepreneurs “leap forward.” Although there have been smaller solar lantern projects in countries such as China, the lighting initiative is “new territory” for the bank.

Sub-Saharan Africa’s “limited infrastructure capacity” presents challenges, says Cabraal. But early consultations with the private sector and government met with a “strong and positive response.”

The World Bank says connecting new areas of Africa to power will serve consumers, support local commerce, create new jobs, enhance air quality, and improve health, safety, and quality of life.

Fuel for outdated lighting technology typically comprises up to 15 percent of a person’s annual income in Africa, the bank adds. Estimates show that only two percent of rural Sub-Saharan Africans have access to “modern energy” and electricity. That means at least 500 million people do not.

IFC Launches Plan for Infrastructure Growth in Africa

IFC Launches Plan for Infrastructure Growth
East African Standard (Nairobi)

NEWS
8 September 2007
Posted to the web 7 September 2007

By Tom Mogusu
Nairobi
The International Finance Corporation (IFC) has launched a multi-million shilling project aimed at transforming African financial markets.

IFC will also ask African governments to use bond markets to raise infrastructure funds on a long-term basis.

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The Efficient Securities Markets for Institutional Development (ESMID), is already being rolled out in Kenya, Uganda, Tanzania, Rwanda and Nigeria.

It will cost the corporation an estimated $5.5 million and is aimed at deepening the bond market.

“This project will be implemented over the next three years,” Mr Evans Osano, a Regional Manager with IFC, said on Friday.

“Through this project, we want to see how the bond market can be used to fund housing and infrastructure projects in Africa.”

The project comes at a time when Kenya and other African countries are grappling with the needs of their growing economies and the need to improve infrastructure.

East African nations have been growing at an average rate of 5 per cent over the past four years, but poor infrastructure has had a negative impact on the growth.

While the growth has been fuelled by service industries, there is demand for governments and the private sector to play a bigger role in infrastructure development.

Osano said the project was introduced after a research by IFC found out that Africa would need an estimated $250 billion over the next decade to meet growing infrastructure needs.

Osano was speaking in Nairobi during a day seminar on emerging markets sponsored by Strathmore University.

Other speakers included the Central Bank of Kenya Governor, Prof Njuguna Ndungu, presented a paper on monetary policy and capital markets.

Others speakers included Mr Jimnah Mbaru, CEO, Dyer & Blair Investment Bank and Chairman of Nairobi Stock Exchange (NSE) and Dr James McFie, a lecturer at Strathmore University.

The project would also seek to improve operating financial environment in the five target nations.

“We shall be looking at doing a market diagnosis in Nigeria so that we understand that region.”

Ndungu said there was room for more financial reforms in the country.

“The financial markets follow economic performance in the initial stages, but over the last few years, we have seen the sector moving away from bank domination to well functioning securities market.

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