|[August 04, 2014]
GE to Invest $2 Billion in Africa by 2018
WASHINGTON, D.C. --(Business Wire)--
GE (NYSE:GE) announced today that it will invest $2 billion in facility
development, skills training, and sustainability initiatives across
Africa by 2018. GE made the announcement in advance of President Obama's
U.S.-Africa Leaders Summit, where GE is hosting African and global
government officials, policy experts, NGOs, entrepreneurs and business
leaders for a conference on investment, infrastructure, and innovation
Through partnerships and technology, GE is poised to help increase
access, reliability, and affordability of core infrastructure throughout
the continent. Africa has emerged as the most promising growth region
for GE. Total GE revenues in Africa in 2013 were $5.2 billion and in the
past year, GE has won more than $8.3 billion in orders across Africa.
GE Chairman and CEO Jeff Immelt said, "I am proud of our 100-year
history in Africa. Through investments such as our new multi-modal
manufacturing facility in Nigeria, Algeria gas turbine manufacturing,
and our customer innovation center in South Africa, we remain a
committed partner to Africa's sustainable growth."
GE will focus its investment in Africa in three strategic areas:
building infrastructure; delivering localized solutions to customers;
and capacity building, by providing skills training and growing supply
chain development in local communities.
New GE commitments in Africa include:
GE's Distributed Power business will supply aeroderivative gas
turbines in Algeria and Nigeria to increase grid reliability during
peak power demands in Algeria and generate uninterrupted power at the
Nigerian National Petroleum Corporation's state oil refinery. As a
founding partner for President Obama's Power Africa initiative, GE
committed to help bring online 5,000MW of new electric generation
capacity in cooperation with the Initiative's government and other
private sector partners across six partner countries, including
GE's "Country-to-Company" agreement with the Government of Nigeria,
which encourages the development of infrastructure projects and the
transfer of skills and technology, will be renewed for another five
GE will supply approximately $1 billion in railway and power equipment
to Angola, under a bilateral agreement signed this week between the
Export-Import Bank and Angola's Ministry of Finance to finance
infrastructure development projects in the country.
The GE Foundation will invest $20 million over the next five years in
health programs across Africa - including Nigeria, Kenya, Ghana,
Rwanda, Uganda, Tanzania and Malawi - to train nurse anesthetists and
biomedical equipment technicians, among other healthcare initiatives.
Jay Ireland, President and CEO, GE Africa said, "GE has long been
committed to unlocking Africa's potential but, as our most recent deals
in the region demonstrate, we believe there is still more that we can
do. Our investments in infrastructure and people only strengthen our
role as a key partner in helping to build Africa's future."
Nabil Habayeb, President and CEO, GE Middle East, North Africa & Turkey
said, "Together with our regional partners, GE is elevating
transformative ideas that have the potential to solve local challenges
by lending scale and resources. GE is committed to empowering the
communities in which it operates across the continent."
Other commitments and recent announcements in Africa include:
Core infrastructure needs in Africa represent a 90 billion opportunity.
GE is one of the leading American companies powering Africa. GE's
advanced technologies generate 25 percent of Africa's gas power, and
nearly 70 percent of the electricity distributed across Algeria.
GE and Dangote Industries, one of the largest diversified industrial
conglomerates in Africa, signed a strategic cooperation agreement last
year, and a framework agreement for distributed power solutions this
year. The partners will collaborate on major infrastructure projects -
in power generation, rail transport, and the oil and gas sector.
GE and the Tunisia Ministry of Development and International
Cooperation signed a "Country-to-Company" MOU agreement, committing to
develop local infrastructure through partnerships in transportation,
healthcare, and electricity sectors.
GE recently announced plans to invest in the Ghana 1000 project, which
aims to bring 1,000 MW of power online over the next six years.
GE South Africa Technologies has committed to supply Transnet with 233
locomotives, as well as develop a Supplier Development Fund with IDC (News - Alert)
and IFC that fosters the growth of subject matter experts throughout
the GE supply chain in Africa. The partnership with Transnet has
created hundreds of skilled jobs on both continents. With this new
order, GE will be delivering 436 new locomotives operating in South
Africa by 2017.
In Algeria, GE is investing with partner, Sonelgaz, to build a new
production plant manufacturing steam turbines, gas turbines,
generators, and control systems that will deliver approximately 2 GW
per year to meet the country's growing electricity demand.
GE received orders in Mozambique for 100 locomotives between 2012 and
2014. In early 2014, GE Transportation delivered the first four of 10
C30ACi locomotives that were ordered in 2012 to CFM (Portos e Caminhos
de Ferro de Moçambique). GE will provide services and skills training
in Mozambique. For this order, the engines are made in Pennsylvania
and the locomotives are assembled at Transnet Engineering plant in
GE is working with partners in Africa to drive sustainable development
and solve local challenges by investing in technology, building capital
markets and developing technical skills within communities.
In Calabar, Nigeria, GE is investing more than $1 billion over five
years to build technical expertise and infrastructure capacity across
various sectors of the Nigerian economy. The investment includes $250
million toward a new multi-modal facility for manufacturing and
assembling machinery that will create 2,300 new local jobs.
As part of a $500 million agreement with Egypt's Carbon Holding, GE
will deliver an integrated solutions package featuring technologies
and equity in one of the world's largest petrochemical projects.
By 2017, GE will invest $70 million into a Customer Innovation Center
for skills development in South Africa, as well as $19 million into
supplier development funds to provide financial and technical support
for emerging local businesses.
GE will provide an additional $350 million in services and technology
to Nigeria's subsea industry, including hiring of local field
engineers and deployment of solutions from GE's Oil & Gas business.
In collaboration with the U.S. Africa Development Foundation and
USAID, GE launched the "Power Africa Off-Grid Energy Challenge" and
awarded six $100,000 grants to local enterprises to develop and expand
off-grid solutions. Now in its second phase, the challenge has
expanded to cover all six Power Africa countries by including
Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania.
Together with the Federal Ministry of Health and USAID, GE Healthcare
has entered into a $20 million five-year initiative to reduce
child-maternal deaths in Nigeria. This partnership entails forming a
new healthymagination Mother and Child Initiative as well as
supporting the ongoing efforts of the Ministry of Health's "Save One
Million Lives" program, which tackles maternal and infant mortality in
GE empowers the communities in which it operates by providing skills
training and developing leaders through partnerships with local
governments, schools, and hospitals. We are investing in capacity
building that will ensure sustained growth.
Through its Apprenticeship program, over the next four years, GE
Africa will spend up to $45 million to develop local Angolan talent.
As part of its work with the Young
African Leaders Initiative (YALI), GE will support YALI Regional
Leadership Centers curriculum development, provide facilitated
leadership training, and volunteer GE staff members to serve as
mentors to youth.
In Algeria, GE is partnering with the Ministry of Health to improve
emergency care, modernize hospitals and support the government in
developing 10 new teaching hospitals. GE launched its
healthymagination program in Algeria in May, focused on consumer
education and awareness of disease prevention.
In partnership with AMIDEast, GE is investing in teacher training
programs focused on increasing capabilities in the public education
system in Libya, Tunis and Egypt.
GE, Dangote Foundation and other partners are collaborating to create
a skilled workforce in Nigeria. Both organizations are focused on
training young people in order to maximize their potential for
employment. Garages is designed as a convention for hands on training,
work placement opportunities, and a leadership program designed for
graduate students in manufacturing and various service industries.
"Over the last few years, we have expanded in growth markets by 15
percent each year," Immelt said. "Our capability and culture give us
great momentum in Africa and other developing regions around the world.
We are solving problems for our customers and countries where we invest."
GE (NYSE:GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com.
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