Several African nations pledged on Monday to open their electricity sectors to attract investment and provide power to 300 million people who currently lack electricity, aiming to achieve this goal within the next six years.
Africa has the largest population without access to electricity globally and is working towards connecting homes to power by 2030 under the Mission 300 initiative, launched by the World Bank and the African Development Bank (AfDB) in April.
The initiative seeks to mobilize at least $90 billion in funding from multilateral development banks, development agencies, financial institutions, private companies, and philanthropies, as reported by the Rockefeller Foundation, which is involved in the project.
Kevin Kariuki, vice president for infrastructure at the AfDB, stated during an energy summit in Tanzania that, “We want to expand and rehabilitate our electricity grids at the least possible cost.”
Countries such as Nigeria, Senegal, Zambia, and Tanzania were among a dozen that committed to reforming their electricity utilities, promoting renewable energy integration, and setting higher national electricity connection targets.
World Bank President Ajay Banga highlighted that multilateral development banks and commercial banks at the summit would leverage these commitments to encourage their clients to invest in Africa’s energy sector.
Providing electricity to 300 million people, which constitutes half of those without power in Africa, is seen as a key driver for development by creating new jobs, Banga explained.
The World Bank plans to allocate $30-40 billion to the project, while the AfDB will contribute $10-15 billion, with the remainder expected from private investors and other sources.
Banga added, “The World Bank will only pay countries when they make the necessary changes.”
Private investors have previously pointed to regulatory challenges, bureaucratic obstacles, and currency risks as barriers to investing in Africa’s electricity sector.
According to the World Bank and AfDB, half of the new connections will be made through existing national grids, while the other half will rely on renewable energy sources, such as wind and solar mini-grids.
