Power Africa Initiative strengthens economic ties

"US president Barack Obama's Power Africa initiative received new financial commitments worth $6 billion following the high profile US-Africa Leaders Summit in Washington in August, bringing the total amount committed to the project to more than $20 billion." (Saigal) Various banks in the United States have "banded" together to pledge vast amounts of financial support to President Obama's project.  Essentially Power Africa is an initiative to establish and provide electricity to the sub-Sahara region, but it also shows other businesses and investors that there is a new market that is free to be built upon.  Rather than pouring high interest loans to African nations, this program provides solid economic growth that will help create a long term solution to the problems of poverty in Africa.  Citi Bank has indicated their hopes of placing their "financial expertise" in energy sectors in African nations, mainly renewable resources. Power Africa was created when President Obama visited Cape Town in 2013, and aims to provide electricity for the 600 million people in sub-Saharan Africa. The  Power Africa initiative " plans to tap into opportunities in natural gas, wind, solar and hydropower in the region to encourage economic development and increase energy security throughout the region," (Saigal) and will focus on  Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania.  This new development of strengthening economic ties with Africa may partially be in response to the growing trade between Africa in China which grew to $210 billion in 2013, about 21 times more than in 2000.  As it stands only about 1% of exports from the Unites States heads toward Africa, and trade between the U.S. and Africa has been decreasing since 2011 (trade was $85 billion in 2013).  In order to adequately solve the financial problems in Africa the Unites States needs to strength, support, and develop economic ties by encouraging American corporations to invest in African industries, and develop concrete initiatives that go beyond handing African nations a large check for a "quick fix".

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