Solar panels file photo
SB Morgen (SBM) Intelligence, a geopolitical research firm, says the termination of Power Africa, a United States initiative to improve electricity on the continent, is a wake-up call for African leaders.
Citing sources familiar with the matter, Bloomberg reported last week that President Donald Trump’s administration dismantled the initiative more than a decade after it was launched.
The report added that some remaining programmes, especially those connecting projects with US companies, may be continued under different government agencies.
The abrupt termination is part of Trump’s decision to cancel billions in foreign aid as part of wider efforts to align international projects with US foreign policy priorities.
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In the report released this month, SBM Intelligence said the resolution to review the aid-driven initiatives has left African nations vulnerable to the whims of external actors and highlights the risks of over-reliance on donor-driven programmes.
“This moment serves as a wake-up call for Africa to take control of its energy future — not just to keep the lights on but to ensure long-term sustainability and self-sufficiency,” the report said.
“To achieve this, Africa must look elsewhere, including inwards and fast. The continent’s vast renewable energy potential —solar, wind, hydro, and geothermal — remains largely untapped.
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“By prioritising regional cooperation, African nations can pool resources, share expertise, and create interconnected energy markets that enhance efficiency and resilience.”
In Nigeria, Power Africa helped facilitate the development of solar mini-grids and off-grid solutions, bringing electricity to thousands of rural households.
It also supported the Nigerian government in reforming its power sector to attract private investment.
“Without the structured support and risk mitigation that Power Africa provided, African countries will need to strengthen local investment environments, develop alternative financing solutions, and build stronger regional energy markets to maintain investor interest and ensure continued progress in closing the electricity access gap,” SBM Intelligence advised.
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The report said countries like Russia and the Gulf states will likely see Power Africa’s withdrawal as an opportunity to strengthen their presence in Africa’s energy sector.
However, the research firm warned that while these investments provide much-needed capital, they often come with strategic and political conditions, such as securing access to resources or advancing specific agendas.
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