The AfDB and the WB aim to connect 300 million Africans

The initiative by the World Bank Group (WB) and the African Development Bank (AfDB) could halve the number of people in Africa without access to electricity

The World Bank Group and the African Development Bank Group are working together in an ambitious effort to provide access to electricity to at least 300 million people in Africa by 2030.

The World Bank Group will work to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid, while the African Development Bank Group will support another 50 million people.

600 million Africans are still deprived of light

Access to electricity is a basic human right and is the foundation of any successful development effort. Currently, 600 million Africans lack access to electricity, creating significant barriers to healthcare, education, productivity, digital inclusion and, ultimately, job creation.

“Access to electricity is the basis of all development. It is an essential ingredient for economic growth and essential for large-scale job creation. Our ambition can only be realized with partnership and ambition. We will need political action from governments, and financing from multilateral development banks. and private sector investment to make this possible,” said Ajay Banga, President of the World Bank Group.

This partnership demonstrates the determination of the World Bank Group and the African Development Bank Group to be braver, bigger and better in tackling one of Africa’s most pressing challenges. This initiative is the latest manifestation of the World Bank Group’s commitment to become more impact-oriented and is the byproduct of a joint work plan to build a better bank. It is supported by a constellation of regional energy programs that will now be aligned towards this common goal.

$30 billion to provide electricity to 250 million Africans

For the World Bank Group to connect 250 million people, it will require $30 billion in public sector investments, of which IDA, the World Bank’s concessional arm for low-income countries, will be essential. In addition, governments will need to implement policies to attract private investment and reform their public services so that they are financially sound and efficient, with price mechanisms that protect the poor.

Connecting 250 million people to electricity would open up private sector investment opportunities in distributed renewable energy alone, worth $9 billion. In addition, there would be significant opportunities for private investments in grid-connected renewable energy, which are needed to drive economies towards growth.