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U.S. Int’l Development Finance Corp. funding for Ethiopia could benefit geothermal projects

Aluto Langano geothermal plant, Ethiopia (source: UNEP, ARGeo)
Alexander Richter 4 Apr 2020

Newly founded Development Finance Corporation (DFC) that replaced the former OPIC is earmarking up to $5 billion in private sector investment into Ethiopia. That could benefit development in the energy sector, last but not least geothermal development in the country.

As part of its readiness to invest up to $5 billion in Ethiopia, Eastern Africa, the newly created International Development Finance Corporation (DFC) in the U.S. aims to support private-sector reform and counter the influence of China in the country.

As reported by the Financial Times, the money is expected to be invested in the next three to five years, according to Ahmed Shide, the Finance Minister of Ethiopia. Interest of U.S. players for investments, lies among others in telecoms, geothermal energy and logistics.

“We are working in partnership with Ethiopia to implement reforms that will attract more capital from the private sector. If adopted, these reforms will make the country eligible for a significant commitment from the DFC which will mobilize several billion dollars from the private sector ”, said Adam Boehler, executive director of the DFC.

DFC has replaced the U.S. Overseas Private Investment Corporation (OPIC) last year and has a lending capacity of $60bn.

There are several private sector development efforts on geothermal projects, among them the large projects of Tulu Moye, Corbetti and others. There are American interests in several of the privately driven geothermal projects.

Source: Financial Times