The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has approved over $1bn financing and insurance commitments to support five private sector-led development projects in Africa.

Elizabeth Littlefield, OPIC’s President and CEO, said: “The projects approved today exemplify the development impact of OPIC’s support to US businesses working around the globe.”

Two of the approved projects represent significant progress toward fulfilling OPIC’s commitment to President Obama’s Power Africa initiative, to which OPIC has pledged $1.5bn in financing and insurance.

These include Amandi Energy in Ghana, to which OPIC approved up to $250m in financing, and ContourGlobal in Senegal (up to $100m in financing).

Amandi Energy will use an OPIC investment guaranty for the construction and operation of an approximately 200 megawatt (MW) combined cycle gas turbine power plant in Aboadze, Ghana.

This will increase power generation capacity in Ghana, where energy shortages are acute and blackouts are common, an impediment to overall economic growth.

ContourGlobal will use an OPIC direct loan for the development and operation of a 53 MW thermal power plant in Cap des Biches, Senegal.

The construction of a new power generation facility on a brownfield site will add over 10% to the total installed energy capacity of Senegal, where the cost for scarce electricity is high and power shortages impede economic growth.

Additional projects approved for OPIC support include Bayport Management in Sub-Saharan Africa (up to $250m financing), Tahrir Petrochemicals Corporation in Egypt (up to $400m financing) and MicroBuild (up to $45m in financing).

Bayport enables financial inclusion for hundreds of thousands of people who have been historically underserved by traditional banks.

Bayport Management, will use an OPIC direct loan to expand its financial solutions offering to wage earners in many countries in Sub-Saharan Africa and Latin America.

Tahrir Petrochemicals Corporation will use an OPIC investment guaranty for the development of a petrochemical production facility in Ain Sokhna, Egypt.

When complete, the complex will be the largest petrochemical facility in Egypt, and will produce a broad slate of petrochemicals, which are essential inputs for modern manufacturing.

The project is expected to contribute to stability and growth through job creation, employing 25,000 Egyptian workers during the construction phase and a substantial team of Egyptian engineers, technicians and support staff during operations.

MicroBuild will use an OPIC direct loan for expansion of housing microfinance lending in developing countries worldwide.

This is the second OPIC loan in a partnership with MicroBuild and Habitat for Humanity, which will provide technical assistance alongside the lending operations.

The lending model leverages a worldwide network of microfinance institutions to provide housing loans in developing countries.

OPIC’s financing is projected to support loans for incremental building, home improvement, and new housing for more than 100,000 families.

Littlefield said that the projected results of these projects are significant and noteworthy.

“The positive impact that will result from OPIC’s support of these projects confirms that the private sector is a powerful force for good, affecting outsized developmental impacts in fast growing markets around the world,” she said.