Our Correspondent | Africa Guardian
World Bank and AfDB Unveil $40bn Power Financing Plan for Africa
The World Bank and African Development Bank (AfDB) have announced a $40 billion financing initiative under the Mission 300 program, designed to expand electricity access to 300 million Africans by 2030.
Bridging Africa’s Energy Gap
As of 2019, electricity access in sub-Saharan Africa ranged from a mere 1% in South Sudan to 94% in South Africa, according to the International Energy Agency. The Mission 300 initiative aims to bridge this gap by connecting half the continent’s population to national power grids, while the other half will benefit from off-grid solutions, including solar mini-grids.
Funding and Collaboration
The program will allocate $30 billion from the World Bank and AfDB, with an additional $10 billion anticipated from private sector contributions. The initiative seeks to attract support from private developers, financial institutions, sovereign wealth funds, and philanthropies by improving the profitability of renewable energy investments in sub-Saharan Africa.
AfDB’s energy and financial solutions director, Wale Shonibare, confirmed the bank’s $5 billion commitment to the project. Shonibare highlighted plans to work with partners to establish financial mechanisms and guarantees to reduce risks for private investors.
Franz Drees-Gross, World Bank’s director of infrastructure for Western and Central Africa, emphasized the scale of the challenge: “Of the 680 million people globally without electricity, 570 million are in sub-Saharan Africa. With high population growth, it’s challenging to make significant progress in coverage.”
Reform-Driven Requirements
Participating countries must adopt regulatory measures to attract private investments and prioritize cost-effective electricity solutions, predominantly renewable energy. Additional requirements include:
- Running competitive tenders for power generation projects.
- Ensuring utilities charge rates sufficient to cover operating expenses.
- Outlining comprehensive plans for universal electricity access.
Mission 300 Summit
Thirteen nations, including Nigeria, the Democratic Republic of Congo, Chad, and Ivory Coast, will present their detailed energy access strategies at the Mission 300 Energy Summit in Tanzania at the end of January 2025.
This ambitious program aligns with the World Bank and AfDB’s commitment to fostering sustainable development in Africa by addressing the region’s energy challenges while encouraging private sector participation.
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