- The World Bank and AfDB have outlined terms for African nations to secure up to $40 billion in funding to tackle the continent’s electricity crisis through the Mission 300 program.
- Participating countries must commit to reforms, attract private investment, and prioritise renewable energy to provide electricity to 300 million Africans by 2030.
The World Bank and the African Development Bank (AfDB) have outlined the conditions African nations must meet to secure up to $40 billion in funding to tackle the continent’s electricity crisis. This initiative is part of Mission 300, which aims to provide electricity to 300 million Africans by 2030. The two banks have committed $30 billion to the program, with an additional $10 billion expected from private sector investments.
To qualify for this financial support, countries must implement regulations that attract private investment and commit to utilising the lowest-cost electricity, primarily from renewable sources. Thirteen African nations will present their energy plans at the Mission 300 energy summit in Tanzania later this month.
Franz Drees-Gross, the World Bank’s director of infrastructure for Western and Central Africa, emphasised the scale of the challenge, noting that of the 680 million people globally without electricity access, 570 million live in sub-Saharan Africa. High population growth further complicates efforts to increase electricity coverage.
The two banks are optimistic that the program will attract investment from private developers, financial institutions, sovereign wealth funds, and philanthropic organisations by making renewable energy projects in sub-Saharan Africa more profitable. Participating countries are expected to commit to running competitive tenders for power generation projects, ensuring that their utilities set electricity prices high enough to cover operational costs. Additionally, they must present plans to achieve universal electricity access in their countries.
The plan aims to connect half the 300 million people to national grids, while off-grid solutions like solar mini-grids will serve the other half.
According to Wale Shonibare, the AfDB’s director of energy and economic solutions, the AfDB is contributing $5 billion to the initiative and, along with other institutions, will establish financial guarantees and mechanisms to reduce risks for private investors.
Countries like Nigeria, the Democratic Republic of Congo, Chad, and Ivory Coast will present their plans at the summit. According to the International Energy Agency, in 2019, electricity access in sub-Saharan Africa ranged from just 1% of the population in South Sudan to 94% in South Africa.