Trump Terminated Power Africa, an Initiative to expand electricity in Africa

LONDON (Capital Markets in Africa) – The Trump administration has terminated Power Africa, a U.S. initiative launched in 2013 under President Barack Obama to enhance electricity access across Africa. This decision aligns with broader federal budget cuts aimed at reducing government spending.

Power Africa, managed by the U.S. Agency for International Development (USAID), aimed to bring electricity to tens of millions of African households, addressing critical infrastructure gaps across the continent. Since its inception, the program received just over $1 billion from the U.S., which facilitated approximately $29 billion in power project financing from other sources. These funds supported the development of renewable energy projects—including geothermal, hydro, wind, and solar power—and expanded power generation and transmission across Africa.

The termination of Power Africa has led to significant staff layoffs, with most programs marked for closure. Some initiatives, particularly those connecting projects with U.S. companies, may continue under different government agencies. A State Department spokesperson noted that the decision is part of a broader effort to reassess aid programs based on national interests, stating that programs serving U.S. interests will continue, while those that do not will be discontinued.

Power Africa was previously managed under USAID, the U.S. government’s foreign aid agency. It has now become one of the first high-profile casualties of federal budget cuts led by the Department of Government Efficiency, which is overseen by billionaire entrepreneur Elon Musk. This move is part of a larger restructuring effort targeting various federal aid programs for cost-cutting measures.

The closure of Power Africa marks a significant shift in U.S. foreign aid policy and raises concerns about the future of electricity access initiatives across Africa, where more than 600 million people—approximately 43% of the population—still lack reliable access to electricity.

Efforts to seek further clarification from the U.S. State Department were unsuccessful, as requests for comment remained unanswered at the time of reporting.