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AfDB breaks ranks with World Bank and IMF on use of coal for power in Africa

The African Development Bank (AfDB) is set to back coal-fired projects in Nigeria, Kenya and other African nations in a departure from the International Monetary Fund (IMF) which has a ban on fossil fuels, CAJ News reports.

Kenya is developing a one-gigawatt generator near Lamu on the coast, using the latest clean-coal technology but the World Bank and IMF have refused to engage on the project.  They have also banned funding to South Africa’s Eskom for coal plants.

While Nigeria only has low-grade or “young” coal deposits, the government has agreed to work with private investors who can show ability to develop coal-fired plants that will produce 500 or more megaatts of power.

The African Development Bank has agreed to help fund the projects. The AfDB’s president, Akinwumi Adesina – who served previously as Nigeria’s minister for agriculture — has defended the move. “Africa must develop its energy sector with what it has,” he said.

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