World Bank and AfDB Join Forces to Electrify 300 Million Africans by 2030

The World Bank Group and the African Development Bank Group have announced their commitment to providing at least 300 million people in Africa with access to electricity by 2030.

This ambitious project aims to connect 250 million people through distributed renewable energy systems or the distribution grid, with the AfDB supporting an additional 50 million people.

Ajay Banga, the President of the World Bank, praised Nigeria’s efforts in implementing electricity tariff reforms but emphasized the need for social safety nets to protect the most vulnerable and for clear tariff policies.

He also stressed the importance of regulatory certainty and good management teams running utilities and transmission lines to ensure the success of the project.

Access to electricity is considered a fundamental human right and is essential for development, health care, education, productivity, digital inclusivity, and job creation.

Currently, 600 million Africans lack access to electricity, creating significant barriers to progress.

The World Bank Group and the AfDB recognize the critical role of electricity access in economic growth and job creation.

To achieve their goal of connecting 250 million people, the World Bank Group estimates that $30 billion of public sector investment will be needed, with a significant portion coming from the International Development Association (IDA), the World Bank’s arm for low-income countries.

Governments will need to implement policies to attract private investment and reform their utilities to be financially sound and efficient, with tariff mechanisms that protect the poor.

This initiative is expected to open private sector investment opportunities in distributed renewable energy worth $9 billion, in addition to substantial opportunities for grid-connected renewable energy.

This partnership represents the determination of the World Bank Group and the AfDB to tackle one of the most pressing challenges in Africa, demonstrating their commitment to being bolder, bigger, and better in their approach.

It is the most recent manifestation of the World Bank Group’s efforts to become more impact-oriented and is supported by regional energy programs aligned towards this common goal.

With this initiative, the World Bank Group and the AfDB are taking a significant step towards ensuring that all Africans have access to electricity, a basic necessity for sustainable development and economic progress.