GE to invest $2 billion in Africa by 2018
GE’s Distributed Power business will supply aeroderivative gas turbines in Algeria and Nigeria to increase grid reliability
General Electric (GE) will invest $2 billion in facility development, skills training, and sustainability initiatives across Africa by 2018. GE made the announcement in advance of President Barack Obama’s U.S.-Africa Leaders Summit, where GE is hosting African and global government officials, policy experts, NGOs, entrepreneurs and business leaders for a conference on investment and infrastructure in Africa.
Through partnerships and technology, GE is poised to help increase access, reliability, and affordability of core infrastructure throughout the continent. Africa has emerged as the most promising growth region for GE. Total GE revenues in Africa in 2013 were $5.2 billion and in the past year, GE has won more than $8.3 billion in orders across Africa.
GE will focus its investment in Africa in three strategic areas: building infrastructure; delivering localized solutions to customers; and capacity building, by providing skills training and growing supply chain development in local communities.
New GE commitments in Africa include:
· GE’s Distributed Power business will supply aeroderivative gas turbines in Algeria and Nigeria to increase grid reliability during peak power demands in Algeria and generate uninterrupted power at the Nigerian National Petroleum Corp.'s state oil refinery. As a founding partner for President Obama’s Power Africa initiative, GE committed to help bring online 5,000 MW of new electric generation capacity in cooperation with the Initiative’s government and other private sector partners across six partner countries, including Nigeria.
· GE’s “Country-to-Company” agreement with the Government of Nigeria, which encourages the development of infrastructure projects and the transfer of skills and technology, will be renewed for another five years.
· GE will supply about $1 billion in railway and power equipment to Angola, under a bilateral agreement signed this week between the Export-Import Bank and Angola’s Ministry of Finance to finance infrastructure development projects in the country.
· The GE Foundation will invest $20 million over the next five years in health programs across Africa — including Nigeria, Kenya, Ghana, Rwanda, Uganda, Tanzania and Malawi — to train nurse anesthetists and biomedical equipment technicians, among other healthcare initiatives.
Core infrastructure needs in Africa represent a $90 billion opportunity. GE is one of the leading American companies powering Africa. GE’s advanced technologies generate 25 percent of Africa’s gas power, and nearly 70 percent of the electricity distributed across Algeria.
· GE and Dangote Industries, one of the largest diversified industrial conglomerates in Africa, signed a strategic cooperation agreement last year, and a framework agreement for distributed power solutions this year. The partners will collaborate on major infrastructure projects — in power generation, rail transport, and the oil and gas sector.
· GE and the Tunisia Ministry of Development and International Cooperation signed a “Country-to-Company” MOU agreement, committing to develop local infrastructure through partnerships in transportation, healthcare, and electricity sectors.
· GE recently announced plans to invest in the Ghana 1000 project, which aims to bring 1,000 MW of power online over the next six years.
· GE South Africa Technologies has committed to supply Transnet with 233 locomotives, as well as develop a Supplier Development Fund with IDC and IFC that fosters the growth of subject matter experts throughout the GE supply chain in Africa. The partnership with Transnet has created hundreds of skilled jobs on both continents. With this new order, GE will be delivering 436 new locomotives operating in South Africa by 2017.
· In Algeria, GE is investing with partner, Sonelgaz, to build a new production plant manufacturing steam turbines, gas turbines, generators and control systems that will deliver about 2 GW per year to meet the country’s growing electricity demand.
· GE received orders in Mozambique for 100 locomotives between 2012 and 2014. In early 2014, GE Transportation delivered the first four of 10 C30ACi locomotives that were ordered in 2012 to CFM (Portos e Caminhos de Ferro de Moçambique). GE will provide services and skills training in Mozambique. For this order, the engines are made in Pennsylvania and the locomotives are assembled at Transnet Engineering plant in South Africa.
GE is working with partners in Africa to drive sustainable development and solve local challenges by investing in technology, building capital markets and developing technical skills within communities.
· In Calabar, Nigeria, GE is investing more than $1 billion over five years to build technical expertise and infrastructure capacity across various sectors of the Nigerian economy. The investment includes $250 million toward a new multi-modal facility for manufacturing and assembling machinery that will create 2,300 new local jobs.
· As part of a $500 million agreement with Egypt’s Carbon Holding, GE will deliver an integrated solutions package featuring technologies and equity in one of the world’s largest petrochemical projects.
· By 2017, GE will invest $70 million into a Customer Innovation Center for skills development in South Africa, as well as $19 million into supplier development funds to provide financial and technical support for emerging local businesses.
· GE will provide an additional $350 million in services and technology to Nigeria’s subsea industry, including hiring of local field engineers and deployment of solutions from GE’s Oil & Gas business.
· In collaboration with the U.S. Africa Development Foundation and USAID, GE launched the “Power Africa Off-Grid Energy Challenge” and awarded six $100,000 grants to local enterprises to develop and expand off-grid solutions. Now in its second phase, the challenge has expanded to cover all six Power Africa countries by including Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania.