The U.S. Government’s Millennium Challenge Corporation (MCC) and the U.S. Department of Commerce announced today that 10 American companies will join a trade and investment mission to Tanzania and Malawi from May 31 to June 5 to explore business opportunities in the energy sector.
The mission—announced last August at the U.S.-Africa Leaders Summit as part of the Doing Business in Africa initiative—is the first in MCC’s 11-year history. It will promote U.S. exports and expand U.S. companies’ presence in Africa by introducing American firms to opportunities in the energy sector. The mission contributes to the goals of Power Africa, a whole of U.S. Government effort designed to double access to electricity in all of sub-Saharan Africa. Currently, more than two-thirds of the population of sub-Saharan Africa is without electricity, including more than 85 percent of those living in rural areas.
The firms joining the mission have the expertise to help African countries develop and manage energy resources and systems, as well as build out power generation, transmission, and distribution infrastructure. In Tanzania and Malawi alone, companies can bid on more than $750 million in upcoming MCC-funded projects, along with parallel investments in the countries’ energy sectors.
“This mission underscores MCC’s private sector-driven approach to economic growth and poverty reduction, as well as our commitment to the U.S. Government’s Power Africa effort that aims to expand access to energy across the continent,” MCC CEO Dana J. Hyde said. “U.S. companies will see firsthand the opportunities that exist to expand and grow their businesses in new and emerging markets.”
MCC is committed to engaging the private sector to work with and alongside the agency in its partner countries. To increase awareness among U.S. firms about MCC’s investment opportunities, Hyde and other senior MCC officials are traveling the country to speak directly with American businesses.
MCC is a global leader in creating business-friendly energy sectors and expects to invest approximately $2 billion to support Power Africa through investments that improve the quality and reliability of electricity and promote climate-smart measures, such as energy efficiency and renewable energy.
MCC's first compact with Tanzania, an investment of $698 million from 2008 to 2013, rehabilitated distribution infrastructure and funded a new submarine cable to connect Zanzibar with the mainland. A potential subsequent compact that will focus on energy is currently under development.
MCC’s Malawi Compact will invest up to $350.7 million to revitalize the country’s power sector and improve the availability, reliability and quality of the power supply—ultimately attracting trade and investment and promoting economic growth.
Some of the companies participating in MCC’s first trade and investment mission include:
- Convalt Energy (New York)
- Hecate Energy (Nashville, Tennessee)
- GE (Fairfield, Connecticut)
- MacLean Power Systems (Mundelein, Illinois)
- New City Capital (Charlottesville, Virginia)
- NOVI Energy (Novi, Michigan)
- POWER Engineers (Hailey, Idaho)
- Symbion Power (Washington, DC)
- Synnove Energy (Dover, Delaware)
The Millennium Challenge Corporation, a U.S. Government agency designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people that promote economic growth and elimination of extreme poverty.