By Zainab Joaque, Reporting from Washington DC
Washington DC, USA – In a landmark initiative, the World Bank Group and the African Development Bank (AfDB) have forged a partnership aimed at providing electricity access to 300 million Africans by 2030. This ambitious endeavour seeks to address the significant challenge of electricity connectivity across the continent.
Announced during the Spring Meetings in Washington last week, the partnership pledges to halve the number of Africans living without electricity access. The World Bank Group aims to connect 250 million people through distributed renewable energy systems or the distribution grid, while the AfDB Group will support an additional 50 million people.
Access to electricity is not only a fundamental human right but also a catalyst for development. Currently, 600 million Africans lack access to electricity, hindering progress in healthcare, education, productivity, digital inclusivity, and job creation.
Reacting to the partnership, Ajay Banga, President of the World Bank Group, underscored the critical role of electricity access in fostering economic growth and job creation. He emphasized the need for collaborative efforts involving governments, multilateral development banks, and the private sector to realize this vision.
Banga described the partnership as a testament to the commitment of both institutions to address pressing challenges in Africa. He highlighted the initiative as a key component of the World Bank Group’s efforts to prioritize impactful projects and align regional energy programs toward a common goal.
To connect 250 million people, an estimated $30 billion of public sector investment will be required, with the International Development Association (IDA), the World Bank’s concessional arm for low-income countries, playing a crucial role. Governments are urged to implement policies to attract private investment and reform utilities to ensure financial sustainability and efficiency, with mechanisms in place to protect vulnerable populations.
The initiative is expected to unlock significant private sector investment opportunities, particularly in distributed renewable energy, estimated at $9 billion. Additionally, there will be substantial opportunities for private investments in grid-connected renewable energy, essential for powering economic growth across the continent.
As efforts to electrify Africa gain momentum, the partnership between the World Bank Group and the AfDB Group signals a concerted commitment to address one of the most pressing challenges facing the continent. With collaboration and investment, millions of Africans stand to benefit from improved access to electricity, driving progress and prosperity across the region. ZIJ/22/4/2024