The World Bank and African Development Bank (AfDB) are partnering on an initiative to provide at least 300 million people in Africa with electricity access by 2030.

The World Bank says it will work to connect 250 million people to electricity through distributed renewable energy systems, while the AfDB will support an additional 50 million.

The World Bank estimates that to connect 250 million people, it will need US$30 billion of public sector investment. In addition, governments will need to implement policies to attract private investment and reform their utilities so that they are financially sound with tariff mechanisms that protect the poor.

It adds that connecting 250 million people to electricity would open up private sector investment opportunities in distributed renewable energy worth US$9 billion as well as opportunities for private investments in grid-connected renewable energy needed to power economies for growth.

"Electricity access is the bedrock of all development," said Ajay Banga, president of the World Bank Group. “It is a critical ingredient for economic growth and essential for job creation at scale. Our aspiration will only be realised with partnership and ambition. We will need policy action from governments, financing from multilateral development banks and private sector investment to see this through.”

According to the World Bank, 600 million Africans lack access to electricity, creating significant barriers to healthcare, education, productivity, digital inclusivity and job creation.

AfDB president Akinwumi Adesina said the 300 million people planned to be served by the new partnership will add to the 250 million people targeted under the AfDB’s Desert to Power initiative, making a total of 550 million people to be granted electricity access on the continent.

The Desert to Power programme aims to power the 11 countries of the Sahel region by increasing solar generation capacity by 10GW through public and private projects, and by providing access to electricity for 250 million people via on-grid and off-grid solutions by 2030.

The initial focus has been on Burkina Faso, Chad, Mali, Mauritania and Niger, with an estimated investment value of US$3 billion. Ethiopia, Eritrea, Djibouti, Nigeria, Senegal and Sudan are also project beneficiaries.

According to the Desert to Power 2022 annual report published in November 2023, the AfDB approved investment projects in Chad and Niger, technical assistance for the East Africa Regional Energy Project (EAREP), and a financing facility for the G5 Sahel countries, totalling an estimated US$720.5 million in investment.

Desert to Power projects approved in 2022Source: AfDB

Backed with US$5.5 million of funding, the EAREP aims to develop a harmonised regional renewable energy policy for the East African countries of Djibouti, Eritrea, Ethiopia and Sudan, and will develop technical studies for regional solar parks and associated battery energy storage near regional power pool interconnectors.

The G5 Sahel financing facility aims to assist Burkina Faso, Chad, Mali, Mauritania and Niger to adopt a low-emission power generation pathway by making use of the region’s abundant solar potential. It will focus on utility-scale solar generation using independent power producers (IPPs) and energy storage solutions.

The G5 Sahel facility is ultimately expected to mobilise US$996.7 million, which includes US$379.6 million from the AfDB, US$150 million from the Green Climate Fund, US$275.4 million from other development finance institutions and commercial banks, and US$161.7 million from private investors.