The investment is part of US President Barack Obama’s unveiled power plan for Africa, and would be made through his pan-African proprietary investment company Heirs Holdings, which is the single largest investor to be included in the white house initiative.
The US president on Sunday announced a $7 billion power plan for the black continent, aimed at upgrading the continent’s power network and ending blackouts that deter business investments and activities.
“The investment we are making demonstrates our intent to become a significant player in the power sector.” Mr Elumelu said in a statement. “We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits.”
Earlier this year, the investment company, through its investee company, Transnational Corporation of Nigeria (Transcorp), acquired the Ughelli power plant, one of Nigeria’s largest power assets, which it plans to restore to its full generating capacity of 1000 megawatts. Also, the Africa Finance Corporation (AFC), another African partner in the power Initiative, will invest about $250 million in Ghana, Kenya and Nigeria’s power sectors, with an additional $1 billion investment in sub-Saharan Africa energy projects. Daily Times reported.
The announcement had earlier caused an influx of heated online exchanges as critics believe the initiative would prove a massive failure.
America’s real estate mogul Donald Trump who took to twitter after the pronouncement claimed corruption within the developing continent would scupper the process, alleging that the entirety of the funds will be embezzled.
However Uganda’s billionaire Ashish Thakkar could not hide his discontent at Trump’s claims, labelling his statement as “ignorant”.