The World Bank Group and African Development Bank Group have announced a collaborative initiative aimed at providing electricity access to at least 300 million people across Africa by 2030.
Under the partnership, the World Bank Group will focus on connecting 250 million individuals to electricity through distributed renewable energy systems or the distribution grid, while the African Development Bank Group will support an additional 50 million people.
Access to electricity is deemed a fundamental human right, yet currently, 600 million Africans lack this basic necessity, posing significant challenges to healthcare, education, productivity, digital inclusivity, and job creation.
Ajay Banga, President of the World Bank Group, emphasized the critical role of electricity access in driving economic growth and job creation, stating, “Electricity access is the bedrock of all development.”
This partnership signifies the determination of both institutions to address one of Africa’s most pressing challenges. It reflects the World Bank Group’s commitment to becoming more impact-oriented and is supported by a coordinated workplan to enhance effectiveness.
To achieve the goal of connecting 250 million people, an estimated $30 billion of public sector investment will be required, with a crucial role for the International Development Association (IDA), the World Bank’s concessional arm for low-income countries.
Governments will also need to implement policies to attract private investment and reform utilities to ensure financial viability and efficiency.
The initiative is expected to unlock private sector investment opportunities worth $9 billion in distributed renewable energy alone, with further prospects for investments in grid-connected renewable energy essential for economic growth.
The collaboration between the World Bank Group and African Development Bank Group signals a concerted effort to address energy poverty in Africa and foster sustainable development across the continent
