Obama

announced his

Power Africa

initiative in

2013, US is

investing more

than $9 billion in the initiative.

Obama Africa Initiative

and

Alstom GE Siemens

Among the private companies that the

president said have “committed more than

$9 billion in investment” to the Power Africa

project, G.E. appears to be front and center.

27th April 2014 Osvaldo Coelho

Why GE Wants Alstom?

GE may want Alstom

energy business to go

beyond English

speaking countries and

own to engage an

energy enterprise with

African experience.

French companies

strong in French

speaking Africa US initiative focus in English-speaking countries :

Tanzania, Kenya, Ethiopia, Ghana, Nigeria and Liberia.

27th April 2014 Osvaldo Coelho

What GE Wants?

• GE wants to quick capitalize on Obama’s initiative.

• Buys Alstom

• No financing problem since it has 57 billions cash reserves outside the US

• Large infrastructure contracts increasingly require bidders to put up

financing, putting Alstom at a disadvantage.

• Siemens does not want Alstom to boost US power sector and

proposes a deal for Alstom.

Two issues play against GE and in Siemens favor:

1) France prefers a European 'action among friends' "two European and global

champions in the energy and transport domain,"

2) Siemens is also playing with the France cultural traits: and warned that the

government on which Alstom relies for much of its business would not accept a sale

of Alstom's power business - especially the sensitive nuclear portion - "in haste".

27th April 2014 Osvaldo Coelho

Africa Potential Electricity Needs

it would take around 300 billion

dollars to grant all Sub-Saharan

Africans access to electricity by

2030. Source: IEA