Next week, the U.S. House of Representatives is expected to vote on the Electrify Africa Act, passed by the Senate under unanimous consent late last year. This bill directs the President to establish a multiyear strategy to assist countries in sub-Saharan Africa implement national power strategies and develop an appropriate mix of power solutions, including renewable energy, to provide access to reliable, affordable, and sustainable power in order to reduce poverty and drive economic growth.
On behalf of the African Energy Leaders Group (AELG), a high-level public-private partnership launched last year, we welcome the leadership of the U.S. Congress on this issue. It is our view that the Electrify Africa Act will provide a durable strategic framework to address the challenges of energy poverty on the continent by leveraging a private sector-led, market-based approach which is essential to the sustainability of this effort over time. If passed, Electrify Africa will be the most significant legislation to advance U.S. commercial relations with the continent of Africa since the initial passage of AGOA, 15 years ago.
A wide range of energy sources exist on the continent. Yet, more than 600 million Africans lack access to affordable, reliable and modern energy services. Hundreds of millions are also denied access to basic nutrition, quality education, medical services and sanitation due to lack of adequate energy supply. Recent surveys of African businesses reveal that energy costs account for 40-60 percent of operating expenditure (more than 10 times what it is in the United States), dramatically increasing the cost of doing business in Africa. The effect of the power deficit on our economies is damaging and tangibly constrains development.
We applaud the efforts of all those who have championed the Electrify Africa Act, and urge the House of Representatives to pass this legislation without delay. From our perspective, this bill would codify access to electricity in Africa as a long-term U.S. foreign policy priority, for the benefit of millions of Africans and for U.S. companies doing business on the continent.