African Development Bank and World Bank Join Forces to Electrify Africa

The African Development Bank Group and The World Bank Group have united in a bold initiative to provide electricity access to at least 300 million people in Africa by 2030.

Under this partnership, the World Bank Group aims to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid, while the African Development Bank Group will support an additional 50 million people.

Access to electricity is deemed a fundamental human right and is essential for various aspects of development, including healthcare, education, productivity, digital inclusivity, and job creation. Currently, around 600 million Africans lack access to electricity, presenting significant obstacles to progress.

Ajay Banga, President of the World Bank Group, emphasised the critical role of electricity access in economic growth and job creation, highlighting the necessity of partnership, ambition, and policy action to achieve this goal.

This partnership reflects the determination of both organisations to address one of Africa’s most pressing challenges and is supported by regional energy programs focused on this common objective.

To connect 250 million people, an estimated $30 billion of public sector investment will be required, with a significant contribution from the International Development Association (IDA), the World Bank’s concessional arm for low-income countries. Additionally, governments must implement policies to attract private investment and reform utilities to ensure financial sustainability and efficiency while protecting the poor through appropriate tariff mechanisms.

Achieving universal energy access in Africa requires improved policy frameworks, increased regional energy trade, and significantly more concessional financing, particularly for Decentralised Renewable Energy (DRE) solutions and last-mile grid connectivity for the poorest.

The Distributed Access with Renewable Energy Scale Up (DARES) Platform and the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) Program are key initiatives aimed at accelerating decentralised renewable energy access in Sub-Saharan Africa, providing life-transforming energy access to millions across the continent.

Efforts such as Nigeria DARES and support for the West Africa Power Pool (WAPP) are also making significant strides in providing cheaper and more reliable electricity to countries in the Western and Central Africa sub-region.

Through collaboration with governments, development partners, the private sector, and beneficiary communities, the World Bank Group is committed to accelerating energy access in Africa and achieving universal electricity access by 2030.

Read more
Source: The World Bank