Description of the video:
WEBVTT 1 00:00:00.000 --> 00:00:07.360 2 00:00:07.360 --> 00:00:08.960 I'm Maria Grosz-Ngate. 3 00:00:08.960 --> 00:00:12.120 I'm the associate director of the African Studies Program 4 00:00:12.120 --> 00:00:15.000 at Indiana University Bloomington. 5 00:00:15.000 --> 00:00:20.600 And I'm here to welcome all of you to this "Doing Business 6 00:00:20.600 --> 00:00:24.000 in and with Africa Conference" today. 7 00:00:24.000 --> 00:00:27.360 I'm very delighted that my colleagues 8 00:00:27.360 --> 00:00:32.759 at the Center for International Business Education and Research 9 00:00:32.759 --> 00:00:35.120 organized this event. 10 00:00:35.120 --> 00:00:39.400 I think we'll have many interesting presentations 11 00:00:39.400 --> 00:00:43.360 and hopefully discussion, lively discussion. 12 00:00:43.360 --> 00:00:47.600 It's a very appropriate and timely topic. 13 00:00:47.600 --> 00:00:52.440 And Africa has a long history of trade and entrepreneurship, 14 00:00:52.440 --> 00:00:57.560 and that's often overshadowed by the negative events that 15 00:00:57.560 --> 00:01:00.870 come from the continent or the negative news 16 00:01:00.870 --> 00:01:03.790 that we hear about the continent. 17 00:01:03.790 --> 00:01:06.850 So thank you-- welcome, everyone. 18 00:01:06.850 --> 00:01:12.910 The audience, members of the panels, the invited speakers, 19 00:01:12.910 --> 00:01:15.070 and the moderators. 20 00:01:15.070 --> 00:01:18.790 I also want to thank the committee members who 21 00:01:18.790 --> 00:01:22.110 were involved in planning this event, Peter 22 00:01:22.110 --> 00:01:26.270 Kirkwood and Ansuyah Naiken of the International Center 23 00:01:26.270 --> 00:01:32.070 here in Indianapolis, and Tom Miller of the PNC Bank. 24 00:01:32.070 --> 00:01:35.590 And my very special thanks to Christine Everett 25 00:01:35.590 --> 00:01:42.190 and Vicky Dixon of the CIBER, the Center 26 00:01:42.190 --> 00:01:44.950 for International Business Education and Research. 27 00:01:44.950 --> 00:01:48.710 This is in the Kelley School of Business. 28 00:01:48.710 --> 00:01:53.230 Unfortunately, our keynote speaker, the original keynote 29 00:01:53.230 --> 00:01:58.070 speaker, Lida Fitts of the US Trade and Development Agency, 30 00:01:58.070 --> 00:02:00.270 was unable to come. 31 00:02:00.270 --> 00:02:04.070 She had a last-minute business in Ghana, 32 00:02:04.070 --> 00:02:07.350 so she had to leave on very short notice. 33 00:02:07.350 --> 00:02:12.270 But I don't think we are any worse of it 34 00:02:12.270 --> 00:02:15.510 because David Riposo will replace her 35 00:02:15.510 --> 00:02:18.910 and I will introduce him in a minute. 36 00:02:18.910 --> 00:02:22.990 I just want to mention that Monica Brown was to be 37 00:02:22.990 --> 00:02:26.830 on the first panel initially. 38 00:02:26.830 --> 00:02:33.150 She also was unable to come, but she is replaced by Patricia 39 00:02:33.150 --> 00:02:37.390 [? Seck. ?] And then in the afternoon, 40 00:02:37.390 --> 00:02:39.830 George [? Schriewer ?] was unable to attend, 41 00:02:39.830 --> 00:02:43.510 and unfortunately, we were not able to find a replacement 42 00:02:43.510 --> 00:02:45.670 for him. 43 00:02:45.670 --> 00:02:47.890 The event will be recorded. 44 00:02:47.890 --> 00:02:54.310 But if you need to go out for something, go ahead. 45 00:02:54.310 --> 00:02:57.740 It's not a problem. 46 00:02:57.740 --> 00:03:02.580 So I'm very delighted that David Riposo could join us here. 47 00:03:02.580 --> 00:03:06.620 He is the finance and implementation manager 48 00:03:06.620 --> 00:03:12.140 for sub-Saharan Africa at the US Trade and Development Agency. 49 00:03:12.140 --> 00:03:15.980 So Lida Fitts knew what she was doing when she recommended him 50 00:03:15.980 --> 00:03:18.660 as her replacement. 51 00:03:18.660 --> 00:03:22.340 And in his position, he helps energy ventures 52 00:03:22.340 --> 00:03:27.860 in sub-Saharan Africa achieve financial and commercial 53 00:03:27.860 --> 00:03:29.740 operation. 54 00:03:29.740 --> 00:03:35.260 Before joining the agency, he led donor-funded energy access 55 00:03:35.260 --> 00:03:39.180 programs in Africa and South Asia for five years. 56 00:03:39.180 --> 00:03:43.060 And before then, he was a strategy consultant 57 00:03:43.060 --> 00:03:46.180 advising companies and governments on clean energy 58 00:03:46.180 --> 00:03:49.340 markets and technologies. 59 00:03:49.340 --> 00:03:52.100 His professional experience also includes 60 00:03:52.100 --> 00:03:56.700 establishing a renewable energy consulting business in India 61 00:03:56.700 --> 00:04:01.380 and helping many wind and solar project developers 62 00:04:01.380 --> 00:04:04.540 define pre-construction energy generation 63 00:04:04.540 --> 00:04:06.780 potential of their projects. 64 00:04:06.780 --> 00:04:09.100 He has an MS degree from the University 65 00:04:09.100 --> 00:04:12.380 of Maryland in College Park. 66 00:04:12.380 --> 00:04:17.260 So let's welcome our keynote speaker, Mr. Riposo. 67 00:04:17.260 --> 00:04:19.839 And welcome Mr. Riposo. 68 00:04:19.839 --> 00:04:23.267 [APPLAUSE] 69 00:04:23.267 --> 00:04:27.660 70 00:04:27.660 --> 00:04:28.440 Great. 71 00:04:28.440 --> 00:04:30.720 Well, thanks again for the introduction. 72 00:04:30.720 --> 00:04:33.180 And thanks all to the CIBER team. 73 00:04:33.180 --> 00:04:34.920 It's a privilege to be here. 74 00:04:34.920 --> 00:04:39.380 And once again, Lida Fitts, my colleague, sends her regrets. 75 00:04:39.380 --> 00:04:41.700 She's presently about halfway to Nigeria 76 00:04:41.700 --> 00:04:43.740 where she will be attending a conference 77 00:04:43.740 --> 00:04:46.820 with the Africa Finance Corporation 78 00:04:46.820 --> 00:04:49.300 for the next several days. 79 00:04:49.300 --> 00:04:54.090 My objective with this talk is to hopefully set 80 00:04:54.090 --> 00:04:57.250 the stage for the conversation to come over 81 00:04:57.250 --> 00:05:00.770 the course of the day and discuss the challenges 82 00:05:00.770 --> 00:05:04.050 and opportunities associated with doing business 83 00:05:04.050 --> 00:05:05.970 in and with Africa. 84 00:05:05.970 --> 00:05:09.530 I would like to describe for you a little bit about what the US 85 00:05:09.530 --> 00:05:13.410 government is doing in this domain 86 00:05:13.410 --> 00:05:16.662 to try to improve the situation. 87 00:05:16.662 --> 00:05:18.370 And then I would like to describe for you 88 00:05:18.370 --> 00:05:24.450 what my very small agency is doing in our circumscribed role. 89 00:05:24.450 --> 00:05:27.170 I would like to describe for you what the US Trade 90 00:05:27.170 --> 00:05:29.770 and Development Agency is doing to help 91 00:05:29.770 --> 00:05:32.730 US businesses access opportunities 92 00:05:32.730 --> 00:05:34.310 in sub-Saharan Africa. 93 00:05:34.310 --> 00:05:37.970 94 00:05:37.970 --> 00:05:40.330 So I have a feeling we're going to be having 95 00:05:40.330 --> 00:05:43.010 a number of different versions of this conversation 96 00:05:43.010 --> 00:05:47.730 today, discussing the challenges and the opportunities associated 97 00:05:47.730 --> 00:05:51.650 with doing business in Africa. 98 00:05:51.650 --> 00:05:54.450 Vicky, et al, have asked me to focus in 99 00:05:54.450 --> 00:05:58.210 on power and for very good reason. 100 00:05:58.210 --> 00:06:02.190 USTDA, the broader US government and the business community, 101 00:06:02.190 --> 00:06:05.450 we all perceive this to be a real constraint 102 00:06:05.450 --> 00:06:07.090 to economic growth. 103 00:06:07.090 --> 00:06:11.890 And there are many ways in which access 104 00:06:11.890 --> 00:06:16.850 to electricity and lack of it constrains economic growth. 105 00:06:16.850 --> 00:06:20.270 600 million Africans, as is well known, 106 00:06:20.270 --> 00:06:22.970 are living without access to electricity. 107 00:06:22.970 --> 00:06:25.930 Those with access to electricity often 108 00:06:25.930 --> 00:06:29.690 don't have reliable access. 109 00:06:29.690 --> 00:06:32.550 If that feeder line is leading to your house, 110 00:06:32.550 --> 00:06:38.450 often it goes dark for however many hours or days at a time. 111 00:06:38.450 --> 00:06:42.230 And this is not only an inconvenience, 112 00:06:42.230 --> 00:06:45.850 but a serious constraint to economic growth. 113 00:06:45.850 --> 00:06:50.320 On the other side of that coin, each of those 600 million 114 00:06:50.320 --> 00:06:55.160 that lack access represents a kind of a business opportunity. 115 00:06:55.160 --> 00:06:58.020 If you're able to access that opportunity, 116 00:06:58.020 --> 00:07:01.080 the risk is tremendous. 117 00:07:01.080 --> 00:07:03.960 But the rewards, in turn, are also 118 00:07:03.960 --> 00:07:08.080 quite substantial if you're able to be successful. 119 00:07:08.080 --> 00:07:12.360 We feel quite strongly that US businesses are 120 00:07:12.360 --> 00:07:17.920 in a unique position to help unravel some of these challenges 121 00:07:17.920 --> 00:07:21.340 and do so in a way that's profitable. 122 00:07:21.340 --> 00:07:25.680 123 00:07:25.680 --> 00:07:30.520 And that position is widely held across the US government, which 124 00:07:30.520 --> 00:07:32.820 is foremost among the reasons why, 125 00:07:32.820 --> 00:07:36.040 in 2013, the previous administration launched 126 00:07:36.040 --> 00:07:39.040 the Power Africa program. 127 00:07:39.040 --> 00:07:41.700 If you're not familiar with the Power Africa program, 128 00:07:41.700 --> 00:07:45.040 a brief overview and I'll be happy to address any questions 129 00:07:45.040 --> 00:07:46.960 that you might have about it. 130 00:07:46.960 --> 00:07:53.400 This is an interagency effort that is US government sponsored, 131 00:07:53.400 --> 00:07:57.540 but convenes a number of other bilateral donors, 132 00:07:57.540 --> 00:08:01.040 a number of other multilateral development banks. 133 00:08:01.040 --> 00:08:03.760 And we are all motivated towards the shared 134 00:08:03.760 --> 00:08:13.920 objectives of helping 60 million Africans access energy. 135 00:08:13.920 --> 00:08:18.000 Building out the capacity of Africa to generate energy 136 00:08:18.000 --> 00:08:22.720 by 30,000 megawatts all by 2030. 137 00:08:22.720 --> 00:08:24.840 This is quite an ambitious undertaking. 138 00:08:24.840 --> 00:08:28.760 And although government is playing a leadership role, 139 00:08:28.760 --> 00:08:31.280 the private sector is really out front. 140 00:08:31.280 --> 00:08:36.419 The objective of Power Africa is to provide catalytic funding, 141 00:08:36.419 --> 00:08:39.240 to provide catalytic capacity building that 142 00:08:39.240 --> 00:08:41.679 will crowd in private sector money and private sector 143 00:08:41.679 --> 00:08:44.775 capacity in order to achieve these objectives. 144 00:08:44.775 --> 00:08:46.400 Now, this isn't about the US government 145 00:08:46.400 --> 00:08:51.310 trying to prescribe solutions and pay for them, rather 146 00:08:51.310 --> 00:08:53.670 to crowd in the private sector to help 147 00:08:53.670 --> 00:08:57.550 do some of that work for the benefit of the private sector 148 00:08:57.550 --> 00:09:00.310 and Africa. 149 00:09:00.310 --> 00:09:05.110 Many US government agencies are supporting this initiative. 150 00:09:05.110 --> 00:09:13.750 The export credit bank, the US EXIM Bank, for example, 151 00:09:13.750 --> 00:09:16.790 can provide very low interest loans 152 00:09:16.790 --> 00:09:20.870 to organizations that want to import US goods to Africa. 153 00:09:20.870 --> 00:09:24.030 The Overseas Private Investment Corporation, or OPIC, 154 00:09:24.030 --> 00:09:28.470 can provide very low interest concessional debt 155 00:09:28.470 --> 00:09:33.190 to US investors that want to do business in Africa. 156 00:09:33.190 --> 00:09:35.830 USAID and the Millennium Challenge Corporation 157 00:09:35.830 --> 00:09:38.750 are building the capacity of African institutions 158 00:09:38.750 --> 00:09:44.110 to incorporate more power into their power systems 159 00:09:44.110 --> 00:09:50.670 and to expand access, especially in rural areas. 160 00:09:50.670 --> 00:09:55.630 Our agency has a narrow role, but it's, 161 00:09:55.630 --> 00:09:59.430 I believe, quite important in the landscape of power project 162 00:09:59.430 --> 00:10:03.630 promotion-- of infrastructure project promotion very broadly, 163 00:10:03.630 --> 00:10:05.670 but in the context of today's discussion 164 00:10:05.670 --> 00:10:08.190 of power project promotion. 165 00:10:08.190 --> 00:10:12.810 So I would like to discuss the role of USTDA in all of this. 166 00:10:12.810 --> 00:10:17.110 First at a global level, but then let's drill down a bit 167 00:10:17.110 --> 00:10:21.750 and discuss what's going on in Africa, our Africa portfolio 168 00:10:21.750 --> 00:10:24.390 more broadly. 169 00:10:24.390 --> 00:10:30.750 The mission of USTDA, of the US Trade and Development Agency, 170 00:10:30.750 --> 00:10:35.310 is simply to promote US manufacturing. 171 00:10:35.310 --> 00:10:39.350 And we do that by extending grant capital 172 00:10:39.350 --> 00:10:42.870 to infrastructure ventures in emerging markets all 173 00:10:42.870 --> 00:10:44.620 over the world. 174 00:10:44.620 --> 00:10:49.780 We're a small organization, only about 45 full-time employees 175 00:10:49.780 --> 00:10:52.840 on two floors of an office building in suburban Washington, 176 00:10:52.840 --> 00:10:58.620 D.C., but we have supported over 500 infrastructure 177 00:10:58.620 --> 00:11:01.840 projects in Africa alone since our founding. 178 00:11:01.840 --> 00:11:09.420 179 00:11:09.420 --> 00:11:14.580 We support activities that will help shepherd infrastructure 180 00:11:14.580 --> 00:11:18.420 projects along from the conception stage 181 00:11:18.420 --> 00:11:21.180 to a stage where they will be able to seek 182 00:11:21.180 --> 00:11:23.520 public and private sector sources of funding. 183 00:11:23.520 --> 00:11:28.660 So from a conception stage to a place where they're bankable. 184 00:11:28.660 --> 00:11:30.900 And along that development journey, 185 00:11:30.900 --> 00:11:33.620 we are exposing infrastructure project promoters 186 00:11:33.620 --> 00:11:36.780 to what we consider to be the virtue of us 187 00:11:36.780 --> 00:11:41.900 enterprise, of US manufacturing so that when the project is 188 00:11:41.900 --> 00:11:47.260 finally built, the fraction of US export content 189 00:11:47.260 --> 00:11:50.260 will be very high. 190 00:11:50.260 --> 00:11:53.260 Often our grant-funded enterprises 191 00:11:53.260 --> 00:11:59.140 will include scope elements, such as the engineering 192 00:11:59.140 --> 00:12:01.500 technical analysis required to define 193 00:12:01.500 --> 00:12:04.740 the very technical parameters of the infrastructure that's 194 00:12:04.740 --> 00:12:05.980 proposed. 195 00:12:05.980 --> 00:12:09.300 We will help with the creation of environmental analysis 196 00:12:09.300 --> 00:12:12.100 to identify environmental risk and mitigate it 197 00:12:12.100 --> 00:12:14.780 wherever that's necessary. 198 00:12:14.780 --> 00:12:18.740 We will work with whatever policy and regulatory regime 199 00:12:18.740 --> 00:12:22.020 in the country context to help ensure that all of the licensing 200 00:12:22.020 --> 00:12:26.260 and documentation is in place at the end of our terms 201 00:12:26.260 --> 00:12:30.440 of reference so that once complete, 202 00:12:30.440 --> 00:12:35.280 that project is tied up with the bow and ready to seek financing. 203 00:12:35.280 --> 00:12:39.820 204 00:12:39.820 --> 00:12:42.830 We've been at this for a number of decades, 205 00:12:42.830 --> 00:12:45.570 since the early '80s, and we feel that we're quite good 206 00:12:45.570 --> 00:12:46.850 at it. 207 00:12:46.850 --> 00:12:56.290 Just last year, in the FY16, we identified about $3 billion 208 00:12:56.290 --> 00:13:00.250 in exports that were attributable in that year 209 00:13:00.250 --> 00:13:03.370 to our activities. 210 00:13:03.370 --> 00:13:07.210 Now, we have a staff that is of about three people who 211 00:13:07.210 --> 00:13:10.650 are devoted to monitoring this kind of thing full time. 212 00:13:10.650 --> 00:13:13.210 We have accountants that are essentially 213 00:13:13.210 --> 00:13:15.930 looking over their shoulders, making sure 214 00:13:15.930 --> 00:13:20.633 that the data are substantial and withstand scrutiny. 215 00:13:20.633 --> 00:13:22.050 And we have additional accountants 216 00:13:22.050 --> 00:13:23.690 looking over the shoulders of those accountants 217 00:13:23.690 --> 00:13:25.670 so we're quite certain of these numbers, 218 00:13:25.670 --> 00:13:29.170 that there are a great deal of exports 219 00:13:29.170 --> 00:13:32.210 that are directly attributable to the work that we do. 220 00:13:32.210 --> 00:13:34.970 We feel just as strongly that there are jobs, 221 00:13:34.970 --> 00:13:39.470 US manufacturing jobs, that are attributable to those exports, 222 00:13:39.470 --> 00:13:44.170 about 17,000, 18,000 in the most recent financial year. 223 00:13:44.170 --> 00:13:52.670 Since TDA was founded, we feel that about $57 billion 224 00:13:52.670 --> 00:13:57.890 of attributable exports have been realized. 225 00:13:57.890 --> 00:14:01.410 And the final number I think is the most important, 226 00:14:01.410 --> 00:14:06.490 a nice, succinct summary of who we are and the type of impact 227 00:14:06.490 --> 00:14:09.170 that we have. 228 00:14:09.170 --> 00:14:13.730 When a dollar of US taxpayer funding 229 00:14:13.730 --> 00:14:18.210 is appropriated to USTDA, we can attribute 230 00:14:18.210 --> 00:14:22.587 $85 of US export content as a result 231 00:14:22.587 --> 00:14:24.170 of the technical assistance that we're 232 00:14:24.170 --> 00:14:26.670 able to provide through our grant funding. 233 00:14:26.670 --> 00:14:31.530 234 00:14:31.530 --> 00:14:35.210 So that's a look at who we are from a global perspective. 235 00:14:35.210 --> 00:14:38.920 In Africa, we are an implementing agency 236 00:14:38.920 --> 00:14:43.520 of this much broader interagency effort of Power Africa. 237 00:14:43.520 --> 00:14:48.440 And we play a role really at the origination stage. 238 00:14:48.440 --> 00:14:53.440 Power Africa recall is all about new capacity, new connections. 239 00:14:53.440 --> 00:14:55.600 In a Power Africa context, we are 240 00:14:55.600 --> 00:15:01.080 responsible for identifying new power projects, all 241 00:15:01.080 --> 00:15:04.960 the way at the headwaters of the project development life cycle. 242 00:15:04.960 --> 00:15:07.680 We are responsible for identifying the infrastructure 243 00:15:07.680 --> 00:15:10.280 project promoters who have the highest likelihood of achieving 244 00:15:10.280 --> 00:15:13.760 financial close, identifying a scope of work that 245 00:15:13.760 --> 00:15:17.960 will help them get from wherever they are in their development 246 00:15:17.960 --> 00:15:23.040 life cycle to a stage where they are ready to be bankable. 247 00:15:23.040 --> 00:15:26.160 We have 57 projects today. 248 00:15:26.160 --> 00:15:29.040 As of later this afternoon, we will have 58 249 00:15:29.040 --> 00:15:31.480 if all goes well at our board meeting. 250 00:15:31.480 --> 00:15:37.230 And each of these projects is percolating 251 00:15:37.230 --> 00:15:42.950 towards financial close at one degree of maturity or another. 252 00:15:42.950 --> 00:15:48.370 That final figure of $3 billion, I must apologize for that. 253 00:15:48.370 --> 00:15:52.230 This is an old slide that I pulled in from a previous deck. 254 00:15:52.230 --> 00:15:55.510 The latest figure is more like 6.5. 255 00:15:55.510 --> 00:16:00.750 Just to be clear, that's $6.5 billion in potential exports 256 00:16:00.750 --> 00:16:04.270 that we anticipate we can realize through our Power Africa 257 00:16:04.270 --> 00:16:09.710 portfolio alone, which I'm quite proud of. 258 00:16:09.710 --> 00:16:12.070 But that's just on the US export content 259 00:16:12.070 --> 00:16:14.090 side, which is an important piece of the puzzle 260 00:16:14.090 --> 00:16:16.048 and it's the one that I think principally we'll 261 00:16:16.048 --> 00:16:17.910 be talking about today. 262 00:16:17.910 --> 00:16:23.630 The impact side of the story, I think is just as important. 263 00:16:23.630 --> 00:16:27.830 This is more than a gigawatt of potential new generation 264 00:16:27.830 --> 00:16:28.610 capacity. 265 00:16:28.610 --> 00:16:31.590 This gets us a long way down the field towards the objectives 266 00:16:31.590 --> 00:16:33.270 of Power Africa. 267 00:16:33.270 --> 00:16:35.150 And along the way, 2 million Africans 268 00:16:35.150 --> 00:16:40.030 will be connected to the grid, or otherwise 269 00:16:40.030 --> 00:16:43.350 have access to commercial, high-quality energy 270 00:16:43.350 --> 00:16:45.990 where they didn't before. 271 00:16:45.990 --> 00:16:48.430 And since anecdotes are kind of fun, 272 00:16:48.430 --> 00:16:52.830 I'll describe a little bit the picture on the right. 273 00:16:52.830 --> 00:16:56.630 This is one of a representation of one of the grantees, so one 274 00:16:56.630 --> 00:17:02.070 of the 58, plus or minus, in our portfolio presently. 275 00:17:02.070 --> 00:17:04.950 The grantee for this project, not pictured, 276 00:17:04.950 --> 00:17:08.069 is a gentleman named Caleb King. 277 00:17:08.069 --> 00:17:14.030 He is a medical doctor who is also an electrical engineer 278 00:17:14.030 --> 00:17:15.829 trained at MIT. 279 00:17:15.829 --> 00:17:17.970 He's also a Methodist missionary. 280 00:17:17.970 --> 00:17:23.990 And after the genocide in Rwanda in the middle '90s, he was 281 00:17:23.990 --> 00:17:28.590 inspired to pack up his family and move to a remote corner 282 00:17:28.590 --> 00:17:32.950 of Northern Rwanda, near the border with DRC. 283 00:17:32.950 --> 00:17:37.600 This is a conflict region that even before the genocide 284 00:17:37.600 --> 00:17:40.740 was wracked by generations of conflict, 285 00:17:40.740 --> 00:17:44.400 and the infrastructure was in a very sorry state, 286 00:17:44.400 --> 00:17:46.180 as you can imagine. 287 00:17:46.180 --> 00:17:50.020 Being a medical doctor, he took over a hospital. 288 00:17:50.020 --> 00:17:51.860 With his own equity, he rebuilt it 289 00:17:51.860 --> 00:17:53.740 essentially from the ground up. 290 00:17:53.740 --> 00:17:55.740 As the years went by, though, he noticed 291 00:17:55.740 --> 00:17:59.860 that not having access to a reliable energy source 292 00:17:59.860 --> 00:18:02.860 meant that he had to pull in diesel generators 293 00:18:02.860 --> 00:18:07.260 and the expense was doing violence to his bottom line, 294 00:18:07.260 --> 00:18:13.820 was making it really difficult for his self-funded medical 295 00:18:13.820 --> 00:18:16.500 enterprise to be sustainable. 296 00:18:16.500 --> 00:18:19.540 So he worked with USTDA to essentially go 297 00:18:19.540 --> 00:18:21.180 into the power business. 298 00:18:21.180 --> 00:18:26.380 That corner of rural Rwanda is surrounded on all sides 299 00:18:26.380 --> 00:18:30.040 by rivers throughout the year. 300 00:18:30.040 --> 00:18:32.940 So there's no seasonality really to these rivers. 301 00:18:32.940 --> 00:18:37.200 They have really great power generation profiles, 302 00:18:37.200 --> 00:18:42.340 really steep hills and steady flow that doesn't really 303 00:18:42.340 --> 00:18:44.620 attenuate in the dry season. 304 00:18:44.620 --> 00:18:48.780 With USTDA's support, he established the feasibility 305 00:18:48.780 --> 00:18:53.880 of a whole cascade of hydropower projects that are quite close, 306 00:18:53.880 --> 00:18:56.140 not only to his hospital, which has now 307 00:18:56.140 --> 00:18:59.180 been electrified through the provision of power 308 00:18:59.180 --> 00:19:03.460 from the facility that you can see on the slide, 309 00:19:03.460 --> 00:19:06.220 but also several villages around the hospital 310 00:19:06.220 --> 00:19:08.180 have been electrified as well. 311 00:19:08.180 --> 00:19:13.480 These are villages where if they had power at all in the past, 312 00:19:13.480 --> 00:19:15.940 they'd had it from a diesel generator. 313 00:19:15.940 --> 00:19:19.140 So it was only available to them when the diesel 314 00:19:19.140 --> 00:19:22.700 itself was available to whoever was selling them the power. 315 00:19:22.700 --> 00:19:27.540 And if it was available, it was available at a very high cost. 316 00:19:27.540 --> 00:19:31.650 The cost that this hydropower represents 317 00:19:31.650 --> 00:19:35.450 is substantially lower than what these villagers were 318 00:19:35.450 --> 00:19:36.970 paying before. 319 00:19:36.970 --> 00:19:42.130 Now, this is a very small scale version of the work that we do. 320 00:19:42.130 --> 00:19:46.930 The facility you see is about 500 kilowatts only, 321 00:19:46.930 --> 00:19:50.050 which is not very large. 322 00:19:50.050 --> 00:19:53.330 And the cascade that we hope to develop 323 00:19:53.330 --> 00:19:56.430 won't be too much larger than that. 324 00:19:56.430 --> 00:19:58.930 But I think it's an interesting window into the kind of work 325 00:19:58.930 --> 00:20:01.810 that we do. 326 00:20:01.810 --> 00:20:05.490 The kind of opportunities that our work presents 327 00:20:05.490 --> 00:20:09.610 to US businesses and how the work that we do 328 00:20:09.610 --> 00:20:11.790 can be scaled up across the continent. 329 00:20:11.790 --> 00:20:14.410 330 00:20:14.410 --> 00:20:16.750 So in terms of scaling it up across the continent, 331 00:20:16.750 --> 00:20:19.530 let's just take a look at from a broader perspective what 332 00:20:19.530 --> 00:20:21.970 our portfolio looks like. 333 00:20:21.970 --> 00:20:24.930 We're very active in the gas sector, in part 334 00:20:24.930 --> 00:20:28.730 because the US enjoys such a strong competitive position 335 00:20:28.730 --> 00:20:30.690 internationally in the gas sector, 336 00:20:30.690 --> 00:20:32.170 but in part because it's a really 337 00:20:32.170 --> 00:20:35.030 good fit for a lot of the challenges, not all of them, 338 00:20:35.030 --> 00:20:39.370 but for a lot of the challenges that Africa is facing. 339 00:20:39.370 --> 00:20:44.610 This slide doesn't really do justice to our portfolio. 340 00:20:44.610 --> 00:20:47.090 There are a number of ventures in our portfolio 341 00:20:47.090 --> 00:20:49.250 that aren't represented here. 342 00:20:49.250 --> 00:20:53.570 For example, we're working with the Dangote Group, one 343 00:20:53.570 --> 00:20:57.130 of the most significant corporations in Africa 344 00:20:57.130 --> 00:21:02.930 on a refinery and pipeline project in Nigeria. 345 00:21:02.930 --> 00:21:07.170 We're also working on a compressed natural gas 346 00:21:07.170 --> 00:21:11.290 terminal for transportation project in Nigeria, 347 00:21:11.290 --> 00:21:12.670 and a few other odds and ends. 348 00:21:12.670 --> 00:21:15.530 But this is a useful of summary of the work 349 00:21:15.530 --> 00:21:18.930 that we're doing in natural gas. 350 00:21:18.930 --> 00:21:21.330 My hope is that your takeaway from this slide 351 00:21:21.330 --> 00:21:26.050 is the $5 billion in potential export opportunities 352 00:21:26.050 --> 00:21:31.540 for US businesses should all of these projects fructify. 353 00:21:31.540 --> 00:21:34.560 354 00:21:34.560 --> 00:21:37.560 In a lot of ways, the solar opportunities 355 00:21:37.560 --> 00:21:40.000 that we're pursuing around the continent 356 00:21:40.000 --> 00:21:41.880 are just as compelling. 357 00:21:41.880 --> 00:21:45.960 The export content possibilities for US businesses 358 00:21:45.960 --> 00:21:49.880 are certainly less so. 359 00:21:49.880 --> 00:21:55.560 But the opportunity for impact in Africa is really profound. 360 00:21:55.560 --> 00:21:59.320 Solar facilities can be built quickly, the cost of power 361 00:21:59.320 --> 00:22:06.040 is extremely low, and Africa in many corners of Africa 362 00:22:06.040 --> 00:22:08.902 are among the sunniest places on the planet. 363 00:22:08.902 --> 00:22:10.360 This is a very interesting resource 364 00:22:10.360 --> 00:22:12.520 to be harnessing in order to accomplish 365 00:22:12.520 --> 00:22:16.320 some of those previously stated objectives of providing 366 00:22:16.320 --> 00:22:19.800 power, facilitating access. 367 00:22:19.800 --> 00:22:21.880 The reason I like our solar portfolio 368 00:22:21.880 --> 00:22:25.480 so much is because of its breadth 369 00:22:25.480 --> 00:22:27.420 from a capacity standpoint. 370 00:22:27.420 --> 00:22:31.200 On one end of the spectrum, we're sponsoring a 100-megawatt 371 00:22:31.200 --> 00:22:33.120 solar CSP-- 372 00:22:33.120 --> 00:22:37.880 excuse me, a concentrated solar power project in the Western 373 00:22:37.880 --> 00:22:41.240 Cape of South Africa. 374 00:22:41.240 --> 00:22:45.360 This is quite a sophisticated technology. 375 00:22:45.360 --> 00:22:48.800 There are precedents for it around the world, but very few. 376 00:22:48.800 --> 00:22:50.240 When this thing is built, it will 377 00:22:50.240 --> 00:22:55.880 be a really fantastic machine that will provide 378 00:22:55.880 --> 00:22:58.080 20 to 24 hours of power. 379 00:22:58.080 --> 00:23:00.040 So that is to say this is solar power that 380 00:23:00.040 --> 00:23:02.360 will continue delivering electricity into the grid 381 00:23:02.360 --> 00:23:04.560 after the sun goes down. 382 00:23:04.560 --> 00:23:06.240 At the other end of that spectrum, 383 00:23:06.240 --> 00:23:10.440 we're also working with a small business based 384 00:23:10.440 --> 00:23:16.600 in suburban Atlanta that offers a containerized solar mini grid 385 00:23:16.600 --> 00:23:17.840 solution. 386 00:23:17.840 --> 00:23:22.920 These are 300- to 500-kilowatt machines, 387 00:23:22.920 --> 00:23:25.510 that is to say very small machines that can be loaded 388 00:23:25.510 --> 00:23:29.110 into a shipping container delivered to a village where 389 00:23:29.110 --> 00:23:33.150 previously there was no access to power and a mini grid can be 390 00:23:33.150 --> 00:23:35.810 essentially unfolded from the container. 391 00:23:35.810 --> 00:23:38.350 392 00:23:38.350 --> 00:23:40.830 We see those two kinds of projects as solutions 393 00:23:40.830 --> 00:23:43.290 to very different kinds of problems, 394 00:23:43.290 --> 00:23:45.830 and we're proud to be playing a role 395 00:23:45.830 --> 00:23:48.310 in the delivery of those kinds of solutions 396 00:23:48.310 --> 00:23:49.730 all across the continent. 397 00:23:49.730 --> 00:23:52.910 398 00:23:52.910 --> 00:23:55.710 I thought it would be valuable to give you 399 00:23:55.710 --> 00:23:59.550 a tour of some of the specific US businesses that 400 00:23:59.550 --> 00:24:04.950 are benefiting from the kind of support that we provide. 401 00:24:04.950 --> 00:24:08.910 Starting up top is Rickly Hydropower. 402 00:24:08.910 --> 00:24:12.150 I visited the Rickly Hydropower factory 403 00:24:12.150 --> 00:24:16.950 in Columbus, Ohio, only a couple of months ago 404 00:24:16.950 --> 00:24:19.630 and met with the team to discuss a new project 405 00:24:19.630 --> 00:24:23.510 that they have in Tanzania. 406 00:24:23.510 --> 00:24:25.750 We have a number of grant-funded activities 407 00:24:25.750 --> 00:24:31.150 ongoing in Tanzania, and in particular, in the hydro space. 408 00:24:31.150 --> 00:24:34.270 In all of the activities that we fund, 409 00:24:34.270 --> 00:24:38.210 we throughout the development life cycle 410 00:24:38.210 --> 00:24:42.910 will work hard to expose project developers in Africa 411 00:24:42.910 --> 00:24:47.670 to opportunities to engage with US businesses. 412 00:24:47.670 --> 00:24:52.510 In the course of engaging with one project developer in Africa, 413 00:24:52.510 --> 00:24:55.070 We brought them to Columbus, Ohio, 414 00:24:55.070 --> 00:24:58.270 to tour the Rickly Hydropower facility and a number 415 00:24:58.270 --> 00:25:01.510 of other facilities in the neighborhood, such as a foundry 416 00:25:01.510 --> 00:25:05.750 in Springfield, Ohio, which was responsible for creating 417 00:25:05.750 --> 00:25:10.310 the castings necessary to manufacture some of the larger 418 00:25:10.310 --> 00:25:14.590 turbines that are exported by Rickly. 419 00:25:14.590 --> 00:25:17.470 They were quite impressed by what they saw, 420 00:25:17.470 --> 00:25:21.940 and they filled an order for about a megawatt 421 00:25:21.940 --> 00:25:26.020 worth of turbines which are presently being constructed. 422 00:25:26.020 --> 00:25:29.260 This will be anywhere from $500,000 to about $1 million 423 00:25:29.260 --> 00:25:31.460 worth of business. 424 00:25:31.460 --> 00:25:36.060 Not going to accomplish the objectives of Power 425 00:25:36.060 --> 00:25:39.860 Africa on its own, but I think it's an interesting anecdote. 426 00:25:39.860 --> 00:25:44.380 Alevo is a Swiss battery manufacturer 427 00:25:44.380 --> 00:25:49.300 with a significant manufacturing presence in North Carolina. 428 00:25:49.300 --> 00:25:50.980 A recently opened factory there has 429 00:25:50.980 --> 00:25:54.120 big ambitions not only to work in the domestic marketplace, 430 00:25:54.120 --> 00:25:57.300 but also to export its product abroad. 431 00:25:57.300 --> 00:26:02.260 We're working with Alevo to tie in what we think will be 432 00:26:02.260 --> 00:26:07.620 something like a 25-megawatt hour battery bank to a solar 433 00:26:07.620 --> 00:26:11.820 facility, a 40-megawatt photovoltaic solar facility 434 00:26:11.820 --> 00:26:17.740 in Kenya, that has reached financial close and is very 435 00:26:17.740 --> 00:26:21.620 likely to soon be interconnected to the grid. 436 00:26:21.620 --> 00:26:26.700 A 40-megawatt solar PV plant in Kenya with a 25-megawatt hour 437 00:26:26.700 --> 00:26:31.540 battery storage solution would be really novel across not just 438 00:26:31.540 --> 00:26:34.015 Kenya, but throughout sub-Saharan Africa. 439 00:26:34.015 --> 00:26:36.140 This is the kind of facility that has the potential 440 00:26:36.140 --> 00:26:39.980 to really demonstrate the utility of battery storage 441 00:26:39.980 --> 00:26:43.860 technology, the utility of solar, 442 00:26:43.860 --> 00:26:48.860 and the value proposition of US business in particular. 443 00:26:48.860 --> 00:26:51.440 We see storage as a real frontier 444 00:26:51.440 --> 00:26:54.180 and we're eager to make sure that US 445 00:26:54.180 --> 00:26:59.500 manufactured content has a role to play on that frontier. 446 00:26:59.500 --> 00:27:02.780 And Alevo is a key partner of ours in that regard. 447 00:27:02.780 --> 00:27:04.760 So I've discussed Renewvia a little bit. 448 00:27:04.760 --> 00:27:08.380 They offer a containerised solar solution. 449 00:27:08.380 --> 00:27:12.740 Standard Microgrid in Sacramento, California, 450 00:27:12.740 --> 00:27:14.620 offers a similar solution. 451 00:27:14.620 --> 00:27:18.730 It's quite a bit smaller than what Renewvia offers. 452 00:27:18.730 --> 00:27:21.850 While with Renewvia, we are sponsoring a pilot 453 00:27:21.850 --> 00:27:26.570 test of eight facilities throughout rural Kenya, 454 00:27:26.570 --> 00:27:29.090 with Standard Microgrid we're sponsoring a pilot test 455 00:27:29.090 --> 00:27:33.050 of about 150 facilities throughout Zambia, 456 00:27:33.050 --> 00:27:37.810 in much more rural locations, where smaller facilities are 457 00:27:37.810 --> 00:27:39.410 more appropriate. 458 00:27:39.410 --> 00:27:42.570 These are communities that have never had access 459 00:27:42.570 --> 00:27:45.410 to commercial energy for the most part, 460 00:27:45.410 --> 00:27:47.330 and there's very little demand. 461 00:27:47.330 --> 00:27:49.970 So a smaller facility, the kind of product 462 00:27:49.970 --> 00:27:53.130 that Standard Microgrid offers is much more appropriate 463 00:27:53.130 --> 00:27:55.850 in those kinds of contexts. 464 00:27:55.850 --> 00:27:58.210 Finally, Langson Energy. 465 00:27:58.210 --> 00:27:59.870 These guys are fascinating to me. 466 00:27:59.870 --> 00:28:04.330 What they offer is a system that can 467 00:28:04.330 --> 00:28:08.410 be incorporated into existing geothermal power generation 468 00:28:08.410 --> 00:28:10.090 technology. 469 00:28:10.090 --> 00:28:13.130 Langson Energy can capture heat that would otherwise 470 00:28:13.130 --> 00:28:18.450 be vented to the atmosphere and turn it into electricity. 471 00:28:18.450 --> 00:28:23.550 The technology has been deployed in the United States. 472 00:28:23.550 --> 00:28:27.610 It's been deployed in other developed world contexts. 473 00:28:27.610 --> 00:28:30.230 All of those contexts, for the most part, are mature. 474 00:28:30.230 --> 00:28:33.970 There's not very much greenfield geothermal development 475 00:28:33.970 --> 00:28:37.130 happening in the developed marketplaces of the world. 476 00:28:37.130 --> 00:28:38.970 For Langson Energy-- for companies 477 00:28:38.970 --> 00:28:43.370 like Langson Energy in the US, emerging markets 478 00:28:43.370 --> 00:28:46.330 represent their growth opportunities. 479 00:28:46.330 --> 00:28:49.050 They were excited to engage with USTDA 480 00:28:49.050 --> 00:28:52.570 because they didn't otherwise have an avenue into Africa. 481 00:28:52.570 --> 00:28:55.210 Through our grant funding, they are 482 00:28:55.210 --> 00:28:56.970 able to pilot test their technology 483 00:28:56.970 --> 00:29:00.210 in the African context, in this case, 484 00:29:00.210 --> 00:29:04.010 in a Kenyan context in the Olkaria field. 485 00:29:04.010 --> 00:29:05.210 Learn from it. 486 00:29:05.210 --> 00:29:07.730 Understand how to modify their business model in order 487 00:29:07.730 --> 00:29:14.190 to accommodate the country context and hopefully grow, 488 00:29:14.190 --> 00:29:17.660 hopefully expand into other adjoining marketplaces. 489 00:29:17.660 --> 00:29:21.640 490 00:29:21.640 --> 00:29:24.940 So I've talked a lot about our global portfolio. 491 00:29:24.940 --> 00:29:27.160 I've talked about our Africa portfolio. 492 00:29:27.160 --> 00:29:28.840 I don't want to lose sight of the fact 493 00:29:28.840 --> 00:29:31.740 that we work with businesses in 50 states, 494 00:29:31.740 --> 00:29:36.280 and Indiana is certainly among them. 495 00:29:36.280 --> 00:29:41.360 We over our institutional life, have 496 00:29:41.360 --> 00:29:45.960 attributed about 60 million, plus or minus, 497 00:29:45.960 --> 00:29:48.680 to Indiana businesses. 498 00:29:48.680 --> 00:29:53.640 That is to say we have attributed about $60 million 499 00:29:53.640 --> 00:29:58.400 in exports from Indiana businesses around the world-- 500 00:29:58.400 --> 00:30:00.960 to emerging markets around the world that 501 00:30:00.960 --> 00:30:04.760 are attributable to the work that USTDA has done. 502 00:30:04.760 --> 00:30:07.340 So we're very proud of that legacy. 503 00:30:07.340 --> 00:30:11.480 We're proud of those activities and we 504 00:30:11.480 --> 00:30:14.960 hope to find new ways to engage with businesses 505 00:30:14.960 --> 00:30:18.460 throughout the US and, of course, in Indiana as well. 506 00:30:18.460 --> 00:30:22.440 507 00:30:22.440 --> 00:30:25.960 So this brings me to the end of my presentation here. 508 00:30:25.960 --> 00:30:27.420 Since this is such a small crowd, 509 00:30:27.420 --> 00:30:29.920 I was hoping that we could engage in something 510 00:30:29.920 --> 00:30:31.440 like a conversation. 511 00:30:31.440 --> 00:30:33.440 So I would welcome any questions that you have, 512 00:30:33.440 --> 00:30:37.920 either about USTDA, the role that we play in Africa 513 00:30:37.920 --> 00:30:41.800 or in other emerging market places. 514 00:30:41.800 --> 00:30:42.917 Sir. 515 00:30:42.917 --> 00:30:44.500 [male speaker 1] My question would be, 516 00:30:44.500 --> 00:30:47.660 how does an Indiana company interact with USTDA? 517 00:30:47.660 --> 00:30:49.360 I think that's the essential question 518 00:30:49.360 --> 00:30:53.040 that most people would say, OK, this sounds interesting. 519 00:30:53.040 --> 00:30:56.600 How do I take advantage of it as a small company 520 00:30:56.600 --> 00:30:58.740 if I'm not the size of companies, for example, 521 00:30:58.740 --> 00:30:59.600 here locally. 522 00:30:59.600 --> 00:31:00.378 What do I do? 523 00:31:00.378 --> 00:31:00.920 [DAVID] Sure. 524 00:31:00.920 --> 00:31:04.063 525 00:31:04.063 --> 00:31:05.480 There are a lot of large companies 526 00:31:05.480 --> 00:31:09.080 on this list, no doubt, but some small ones as well. 527 00:31:09.080 --> 00:31:12.510 The small companies that we've engaged with in Indiana 528 00:31:12.510 --> 00:31:14.310 around the world-- 529 00:31:14.310 --> 00:31:17.490 excuse me, around the United States, for the most part, 530 00:31:17.490 --> 00:31:20.910 they have participated in our reverse trade missions. 531 00:31:20.910 --> 00:31:24.070 And this is not something that I went into too much detail 532 00:31:24.070 --> 00:31:27.230 about, of course, in my talk, but they're 533 00:31:27.230 --> 00:31:29.950 a key part of what we do. 534 00:31:29.950 --> 00:31:32.990 The Department of Commerce sponsors trade missions 535 00:31:32.990 --> 00:31:35.510 from time to time, where delegates 536 00:31:35.510 --> 00:31:38.590 will go to marketplaces abroad to learn more about what's 537 00:31:38.590 --> 00:31:40.850 going on in those marketplaces. 538 00:31:40.850 --> 00:31:43.390 What TDA does is really very different. 539 00:31:43.390 --> 00:31:48.550 We will take delegates from, let's say, procurement agencies 540 00:31:48.550 --> 00:31:51.430 in emerging market governments. 541 00:31:51.430 --> 00:31:55.630 We will take business leaders from target emerging markets 542 00:31:55.630 --> 00:32:00.190 themselves and give them a tour of the value 543 00:32:00.190 --> 00:32:01.770 proposition of US business. 544 00:32:01.770 --> 00:32:04.610 We will take them to Columbus, Ohio, for example, 545 00:32:04.610 --> 00:32:06.910 to visit with Rickly Hydropower. 546 00:32:06.910 --> 00:32:09.670 We'll take them to Carson City, Nevada, 547 00:32:09.670 --> 00:32:13.660 to visit with Langson Energy. 548 00:32:13.660 --> 00:32:14.960 We do that regularly. 549 00:32:14.960 --> 00:32:18.100 That's a key component of the work that we do. 550 00:32:18.100 --> 00:32:21.500 And it's a great way for small businesses 551 00:32:21.500 --> 00:32:23.820 to get engaged with emerging marketplaces 552 00:32:23.820 --> 00:32:25.940 without ever leaving the zip code. 553 00:32:25.940 --> 00:32:29.980 We advertise our reverse trade mission activities months 554 00:32:29.980 --> 00:32:31.580 in advance. 555 00:32:31.580 --> 00:32:33.180 The best way to keep up with that 556 00:32:33.180 --> 00:32:38.660 is certainly on our website. 557 00:32:38.660 --> 00:32:43.340 My contact information is on this slide. 558 00:32:43.340 --> 00:32:46.740 I can refer you directly to the spot on our website 559 00:32:46.740 --> 00:32:49.740 where we tend to park this information. 560 00:32:49.740 --> 00:32:53.700 In addition to that, if there is a Indiana business, if there 561 00:32:53.700 --> 00:32:59.260 is a domestic business anywhere in the US that is working with, 562 00:32:59.260 --> 00:33:04.420 let's say, an African enterprise on an infrastructure venture, 563 00:33:04.420 --> 00:33:09.460 we can examine a proposal for grant funding 564 00:33:09.460 --> 00:33:10.880 on an ongoing basis. 565 00:33:10.880 --> 00:33:14.580 We don't publish periodic calls for proposals. 566 00:33:14.580 --> 00:33:16.780 We are always receptive to proposals 567 00:33:16.780 --> 00:33:18.980 from qualifying entities. 568 00:33:18.980 --> 00:33:22.800 A brief note about what might qualify as a prospective offer 569 00:33:22.800 --> 00:33:25.260 from USTDA's perspective. 570 00:33:25.260 --> 00:33:31.860 We have to engage with an entity in an emerging market, that 571 00:33:31.860 --> 00:33:34.300 has to be our grantee. 572 00:33:34.300 --> 00:33:38.420 But no USTDA funds ever go directly to that grantee. 573 00:33:38.420 --> 00:33:42.860 We help that grantee enter into a contract with a US business 574 00:33:42.860 --> 00:33:46.620 who will provide scope of services to that grantee, 575 00:33:46.620 --> 00:33:49.820 and all of the USTDA funds go to pay the invoices 576 00:33:49.820 --> 00:33:51.740 of that contractor. 577 00:33:51.740 --> 00:33:54.200 If there are Indiana service providers, 578 00:33:54.200 --> 00:33:58.980 let's say an engineering firm, eager to work with, let's say, 579 00:33:58.980 --> 00:34:02.520 a special-purpose vehicle developing a ring fenced, 580 00:34:02.520 --> 00:34:07.140 100-megawatt, gas-fired power project in Nigeria, 581 00:34:07.140 --> 00:34:11.070 we could review a proposal from that entity, 582 00:34:11.070 --> 00:34:14.969 so from that Indiana contractor, from that gas-fired power 583 00:34:14.969 --> 00:34:19.290 project promoter for grant funding. 584 00:34:19.290 --> 00:34:22.850 Our grant packages typically are on the order of about a half 585 00:34:22.850 --> 00:34:26.330 million to $1.5 million. 586 00:34:26.330 --> 00:34:28.142 The larger the grants themselves, 587 00:34:28.142 --> 00:34:29.850 the more scrutiny they would tend to draw 588 00:34:29.850 --> 00:34:31.570 from our executive board. 589 00:34:31.570 --> 00:34:34.810 But there is plenty of precedent for us extending grants 590 00:34:34.810 --> 00:34:39.449 on the order of about $1 million for power project promotion-- 591 00:34:39.449 --> 00:34:43.610 for infrastructure project promotion more broadly. 592 00:34:43.610 --> 00:34:44.633 Sir. 593 00:34:44.633 --> 00:34:46.050 [male speaker 2] I'm just curious, 594 00:34:46.050 --> 00:34:50.050 I want to know more about the mini grid [INAUDIBLE]? 595 00:34:50.050 --> 00:34:55.530 596 00:34:55.530 --> 00:34:58.253 [DAVID] So the question was concerning the mini grid? 597 00:34:58.253 --> 00:34:59.170 [male speaker 2] Yeah. 598 00:34:59.170 --> 00:35:05.610 [DAVID] Well, the objectives of the Power Africa Initiative, 599 00:35:05.610 --> 00:35:09.110 very broadly, are to help establish new capacity. 600 00:35:09.110 --> 00:35:14.910 So new megawatts at centralized generating stations, 601 00:35:14.910 --> 00:35:21.090 but also to expand access to customers that presently aren't 602 00:35:21.090 --> 00:35:24.490 connected to any central grid. 603 00:35:24.490 --> 00:35:28.250 USTDA accomplishes that second objective in part 604 00:35:28.250 --> 00:35:31.650 by sponsoring mini grid activities. 605 00:35:31.650 --> 00:35:33.930 Now, mini grids in this context are 606 00:35:33.930 --> 00:35:39.050 defined as enterprises where a generating 607 00:35:39.050 --> 00:35:41.850 station, an electrical generating station, 608 00:35:41.850 --> 00:35:44.750 isn't interconnected with any sort of central grid. 609 00:35:44.750 --> 00:35:47.530 It's just a standalone generating and power 610 00:35:47.530 --> 00:35:49.930 distribution enterprise. 611 00:35:49.930 --> 00:35:52.850 There are several models that we are exploring 612 00:35:52.850 --> 00:35:56.010 through feasibility studies and through pilot tests 613 00:35:56.010 --> 00:35:57.570 throughout our portfolio. 614 00:35:57.570 --> 00:35:59.530 And the two that I mentioned, which 615 00:35:59.530 --> 00:36:02.410 I think are among the most compelling, 616 00:36:02.410 --> 00:36:05.800 are the Standard Microgrid model that 617 00:36:05.800 --> 00:36:11.000 were pilot testing in Zambia, and the Renewvia model 618 00:36:11.000 --> 00:36:13.480 that we're pilot testing in Kenya. 619 00:36:13.480 --> 00:36:18.440 Standard Microgrid delivers a very small kilowatt scale 620 00:36:18.440 --> 00:36:22.680 solution that rolls into the village on a trailer 621 00:36:22.680 --> 00:36:25.520 in an intermodal shipping container, 622 00:36:25.520 --> 00:36:30.320 and can be deployed once again at a kilowatt scale 623 00:36:30.320 --> 00:36:36.360 to several hundred villagers-- can establish several hundred 624 00:36:36.360 --> 00:36:37.520 new connections. 625 00:36:37.520 --> 00:36:40.360 The Renewvia model is only a little bit different. 626 00:36:40.360 --> 00:36:42.100 It is also containerized. 627 00:36:42.100 --> 00:36:45.680 It is also solar generating technology, 628 00:36:45.680 --> 00:36:52.480 but it can deliver power to perhaps 1,000 people. 629 00:36:52.480 --> 00:36:55.600 We feel like there is probably a role in the marketplace 630 00:36:55.600 --> 00:36:59.180 for certainly these two types of solutions, 631 00:36:59.180 --> 00:37:01.520 and probably many others as well. 632 00:37:01.520 --> 00:37:04.560 So we feel it's a small part of our mandate 633 00:37:04.560 --> 00:37:07.480 to provide a venue just to get those marketplaces 634 00:37:07.480 --> 00:37:09.280 out-- excuse me, get those technologies out 635 00:37:09.280 --> 00:37:11.080 into the marketplace to see what works 636 00:37:11.080 --> 00:37:16.760 and what doesn't, and to help US businesses understand 637 00:37:16.760 --> 00:37:19.240 the utility of what they're doing. 638 00:37:19.240 --> 00:37:21.960 Modify, course correct, and hopefully deploy 639 00:37:21.960 --> 00:37:23.020 at a larger scale. 640 00:37:23.020 --> 00:37:28.720 641 00:37:28.720 --> 00:37:31.640 Any other questions? 642 00:37:31.640 --> 00:37:32.200 Ma'am. 643 00:37:32.200 --> 00:37:33.200 [female speaker 1] Yeah. 644 00:37:33.200 --> 00:37:33.880 One question. 645 00:37:33.880 --> 00:37:37.380 You talked about the US, but what about other countries, 646 00:37:37.380 --> 00:37:41.440 for example, China [INAUDIBLE] portfolio infrastructure. 647 00:37:41.440 --> 00:37:45.200 How does the US compete [INAUDIBLE] 648 00:37:45.200 --> 00:37:49.098 with some of the other players [INAUDIBLE]? 649 00:37:49.098 --> 00:37:49.640 [DAVID] Sure. 650 00:37:49.640 --> 00:37:52.560 So it's an excellent point. 651 00:37:52.560 --> 00:37:55.880 China is a very strong competitor 652 00:37:55.880 --> 00:37:58.240 across sub-Saharan Africa. 653 00:37:58.240 --> 00:38:03.870 Often when there are competitive tenders released by governments, 654 00:38:03.870 --> 00:38:06.130 the Chinese can be quite competitive. 655 00:38:06.130 --> 00:38:10.110 They typically come in with a much lower cost. 656 00:38:10.110 --> 00:38:17.590 The Chinese have the benefits of being state enterprises often, 657 00:38:17.590 --> 00:38:20.270 enjoying economies of scale that the US private sector 658 00:38:20.270 --> 00:38:22.470 doesn't necessarily enjoy. 659 00:38:22.470 --> 00:38:24.990 We feel, and we feel this quite strongly, 660 00:38:24.990 --> 00:38:28.110 that US businesses can articulate 661 00:38:28.110 --> 00:38:30.230 a certain kind of a value proposition 662 00:38:30.230 --> 00:38:34.190 that Chinese businesses struggle to articulate, 663 00:38:34.190 --> 00:38:38.950 that US businesses have a lower life cycle 664 00:38:38.950 --> 00:38:46.350 cost, even if Chinese products may have a lower upfront cost. 665 00:38:46.350 --> 00:38:51.350 A big push of USTDA, over the last few years, 666 00:38:51.350 --> 00:38:55.310 has been to try to articulate that message directly 667 00:38:55.310 --> 00:38:58.830 to procurement agencies in target emerging markets 668 00:38:58.830 --> 00:39:00.590 around the world. 669 00:39:00.590 --> 00:39:03.190 For example, in an African context, 670 00:39:03.190 --> 00:39:07.570 in both Ethiopia and Botswana presently, 671 00:39:07.570 --> 00:39:11.150 we have advisors who are working with very 672 00:39:11.150 --> 00:39:16.030 sensitive, procurement-oriented agencies 673 00:39:16.030 --> 00:39:21.650 and advising them in terms of the unique value proposition, 674 00:39:21.650 --> 00:39:26.910 not just of US businesses, but of incorporating best value 675 00:39:26.910 --> 00:39:31.010 decision making into their procurement activities. 676 00:39:31.010 --> 00:39:34.590 So ensuring that it's not just the lowest cost that 677 00:39:34.590 --> 00:39:38.270 wins the award, but it's the lowest life cycle 678 00:39:38.270 --> 00:39:42.350 cost and the greatest value that wins the award. 679 00:39:42.350 --> 00:39:45.750 We feel pretty strongly that the more agencies that 680 00:39:45.750 --> 00:39:49.428 begin to focus on best value procurement out 681 00:39:49.428 --> 00:39:51.470 there in sub-Saharan Africa and in other emerging 682 00:39:51.470 --> 00:39:55.310 marketplaces, the stronger the competitive position of US 683 00:39:55.310 --> 00:39:57.290 enterprises will be. 684 00:39:57.290 --> 00:40:00.340 685 00:40:00.340 --> 00:40:03.180 Ma'am, I believe you had a question as well. 686 00:40:03.180 --> 00:40:08.140 [female speaker 2] How is the education model [INAUDIBLE] 687 00:40:08.140 --> 00:40:10.980 for vocational [INAUDIBLE]? 688 00:40:10.980 --> 00:40:15.740 689 00:40:15.740 --> 00:40:19.080 [DAVID] That's certainly a critical area. 690 00:40:19.080 --> 00:40:22.260 The question concerned capacity building 691 00:40:22.260 --> 00:40:25.180 and workforce development. 692 00:40:25.180 --> 00:40:30.540 This isn't an area where USTDA plays a direct role. 693 00:40:30.540 --> 00:40:34.620 More typically, we're involved in the feasibility study 694 00:40:34.620 --> 00:40:37.900 for the infrastructure project itself, 695 00:40:37.900 --> 00:40:40.220 not necessarily building the capacity, 696 00:40:40.220 --> 00:40:41.900 building the enabling environment 697 00:40:41.900 --> 00:40:45.140 around that facility. 698 00:40:45.140 --> 00:40:46.980 With the exception, I would say, of the work 699 00:40:46.980 --> 00:40:49.460 that we're doing around procurement reform, the work 700 00:40:49.460 --> 00:40:51.660 that we're doing, let's say, evangelizing 701 00:40:51.660 --> 00:40:56.500 about the benefits of best value procurement versus lowest cost 702 00:40:56.500 --> 00:40:57.320 procurement. 703 00:40:57.320 --> 00:41:00.800 704 00:41:00.800 --> 00:41:01.300 Sir. 705 00:41:01.300 --> 00:41:04.980 [male speaker 3] [INAUDIBLE] grants that come in and you 706 00:41:04.980 --> 00:41:10.300 talked about the building, is it new structures or the expansion 707 00:41:10.300 --> 00:41:14.900 of an existing facility in Africa as well? 708 00:41:14.900 --> 00:41:17.540 [DAVID] We certainly do both kinds. 709 00:41:17.540 --> 00:41:21.660 The small hydropower project from several slides 710 00:41:21.660 --> 00:41:24.420 ago, you might recall, that was a rehabilitation 711 00:41:24.420 --> 00:41:26.740 of an existing facility. 712 00:41:26.740 --> 00:41:28.620 More frequently, I'll say that we 713 00:41:28.620 --> 00:41:30.280 work with greenfield projects. 714 00:41:30.280 --> 00:41:32.660 So we're developing infrastructure ventures 715 00:41:32.660 --> 00:41:37.100 from scratch, but we're more than receptive to rehabilitating 716 00:41:37.100 --> 00:41:40.160 existing facilities as well. 717 00:41:40.160 --> 00:41:43.200 I think we have time for maybe one or two more questions. 718 00:41:43.200 --> 00:41:47.060 719 00:41:47.060 --> 00:41:47.580 Sir. 720 00:41:47.580 --> 00:41:51.562 721 00:41:51.562 --> 00:41:52.520 [male speaker 4] Sorry. 722 00:41:52.520 --> 00:41:54.060 There's one more question. 723 00:41:54.060 --> 00:41:57.250 I was the curious about-- 724 00:41:57.250 --> 00:42:01.390 you were particularly concerned not to impose this on Africa. 725 00:42:01.390 --> 00:42:03.530 And that's a reasonable concern, and I 726 00:42:03.530 --> 00:42:06.530 know that they're really needed with the work 727 00:42:06.530 --> 00:42:08.210 that we do there ourselves. 728 00:42:08.210 --> 00:42:11.930 But I was wondering whether you guys are considering 729 00:42:11.930 --> 00:42:15.690 helping African states and government 730 00:42:15.690 --> 00:42:22.830 have a policy structure in place that will be able, in fact, 731 00:42:22.830 --> 00:42:27.550 to appreciate all the work that has been done to Power Africa. 732 00:42:27.550 --> 00:42:31.890 733 00:42:31.890 --> 00:42:34.010 [DAVID] The Power Africa Initiative 734 00:42:34.010 --> 00:42:37.610 more broadly is working quite closely, directly 735 00:42:37.610 --> 00:42:41.530 with governments throughout the continent. 736 00:42:41.530 --> 00:42:45.410 USTDA doesn't tend to engage directly with governments, 737 00:42:45.410 --> 00:42:46.570 although we do. 738 00:42:46.570 --> 00:42:49.010 And in fact, we work with governments from time 739 00:42:49.010 --> 00:42:52.250 to time as grantees. 740 00:42:52.250 --> 00:42:58.650 In Kenya, for example, the KPCL, excuse me 741 00:42:58.650 --> 00:43:00.370 if I have the acronym incorrectly, maybe 742 00:43:00.370 --> 00:43:03.930 someone in the room can correct me, but the utility in Kenya 743 00:43:03.930 --> 00:43:05.730 is among our grantees. 744 00:43:05.730 --> 00:43:09.650 We're developing a small solar power project 745 00:43:09.650 --> 00:43:12.970 with the government of Kenya directly. 746 00:43:12.970 --> 00:43:16.130 But the larger Power Africa Initiative 747 00:43:16.130 --> 00:43:22.010 is much more engaged with host country governments. 748 00:43:22.010 --> 00:43:27.330 For example, USAID, the key implementing agency 749 00:43:27.330 --> 00:43:31.330 of Power Africa, that's the US Agency for International 750 00:43:31.330 --> 00:43:34.530 Development, they have a whole network 751 00:43:34.530 --> 00:43:39.810 of advisors who are embedded within key ministries 752 00:43:39.810 --> 00:43:42.610 in several countries. 753 00:43:42.610 --> 00:43:44.890 And they are probably in the best position 754 00:43:44.890 --> 00:43:48.890 to be describing the value of the work 755 00:43:48.890 --> 00:43:52.880 that we're doing, which the good news is that I 756 00:43:52.880 --> 00:43:56.180 believe is widely accepted. 757 00:43:56.180 --> 00:44:01.080 I believe that the countries where both USTDA and the broader 758 00:44:01.080 --> 00:44:03.160 Power Africa Initiative are most active 759 00:44:03.160 --> 00:44:05.880 are quite receptive to the work that we're doing, 760 00:44:05.880 --> 00:44:11.920 aware of its value and eager to continue to engage with us. 761 00:44:11.920 --> 00:44:12.742 Sir. 762 00:44:12.742 --> 00:44:15.200 [male speaker 5] I'm related to a university in the capital 763 00:44:15.200 --> 00:44:18.200 city of Burundi, Bujumbura. 764 00:44:18.200 --> 00:44:21.040 I wonder what your attitude is toward the more troubled parts 765 00:44:21.040 --> 00:44:24.558 of Eastern Congo and countries like Burundi. 766 00:44:24.558 --> 00:44:25.100 [DAVID] Yeah. 767 00:44:25.100 --> 00:44:27.960 I had a compelling conversation earlier this morning 768 00:44:27.960 --> 00:44:30.600 about the DRC. 769 00:44:30.600 --> 00:44:33.640 Unfortunately, there are some marketplaces 770 00:44:33.640 --> 00:44:36.440 where it's very difficult for us to do business. 771 00:44:36.440 --> 00:44:40.840 DRC and for the time being, Burundi, are among them. 772 00:44:40.840 --> 00:44:46.560 The simple problem being that it seems to us 773 00:44:46.560 --> 00:44:50.120 that the financial community regards Burundi 774 00:44:50.120 --> 00:44:55.080 as a very problematic place to extend capital, to extend debt, 775 00:44:55.080 --> 00:44:56.120 in particular. 776 00:44:56.120 --> 00:45:02.120 And as a result of that, it's viewed as certainly much more 777 00:45:02.120 --> 00:45:04.520 risky. 778 00:45:04.520 --> 00:45:06.580 That's a situation we continue to monitor. 779 00:45:06.580 --> 00:45:10.240 I would love an excuse to work in Burundi, particularly 780 00:45:10.240 --> 00:45:11.972 their small hydropower marketplace. 781 00:45:11.972 --> 00:45:13.680 There's an enormous amount of opportunity 782 00:45:13.680 --> 00:45:17.320 there to build out capacity, to extend access, 783 00:45:17.320 --> 00:45:20.320 but for the time being, we can't work there. 784 00:45:20.320 --> 00:45:22.480 Other countries in that category would 785 00:45:22.480 --> 00:45:28.480 include Zimbabwe and the other usual suspects 786 00:45:28.480 --> 00:45:31.580 of Eritrea and South Sudan. 787 00:45:31.580 --> 00:45:34.640 788 00:45:34.640 --> 00:45:36.720 I think one more question and then 789 00:45:36.720 --> 00:45:39.820 we'll have to move on if, in fact, there is another question. 790 00:45:39.820 --> 00:45:44.000 791 00:45:44.000 --> 00:45:45.297 No more questions. 792 00:45:45.297 --> 00:45:46.380 Well, thank you very much. 793 00:45:46.380 --> 00:45:49.500 [APPLAUSE] 794 00:45:49.500 --> 00:45:50.000