World Bank Funds Renewable Energy Drive in Africa with $300 million

  • World Bank allocates $300 million for renewable energy drives in Eastern and Southern Africa.
  • Trade and Development Bank (TDB) spearheads the implementation of the ASCENT program.

The World Bank has allocated $300 million to bolster renewable energy drive access in Eastern and Southern Africa. They empowered the Trade and Development Bank (TDB) through the ASCENT (Accelerating Sustainable and Clean Energy Access Transformation) program.

With a staggering 550 million Africans living without electricity, the initiative primarily targets countries eligible for support from the International Development Association (IDA) to realise Sustainable Development Goal 7 (SDG7) of universal energy access. The program seeks to facilitate investments in renewable energy ventures.

The Common Market for Eastern and Southern Africa (COMESA) will spearhead the renewable energy drive. The TDB will channel funds to the private sector through direct loans, co-financing arrangements and intermediaries.

Transitioning to companies engaged in renewable energy and clean cooking projects underscores a pivotal shift towards sustainability. TDB Group’s Trade and Development Fund (TDF) will play a pivotal role in disbursing these loans.

This is complemented by performance-based grants to incentivise market entry and innovation. This financing anticipates a significant impact, with projections indicating electricity access for 5 million people.

ASCENT is set to provide Somalia with $100 million. For establishing solar power plants and battery storage systems in strategic locations. The ASCENT program sets ambitious targets to extend electricity access to 100 million people in 20 countries by 2030.

Underscoring a concerted effort to address energy poverty and foster sustainable development across the region.

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