Our Correspondent | Africa Guardian
On Monday, several African nations pledged to open their electricity sectors to investment, with the goal of providing power to 300 million people currently without access over the next six years.
Africa has the highest number of people without electricity globally, and the continent is urgently working toward connecting homes by 2030 through the “Mission 300” initiative, launched by the World Bank and the African Development Bank (AfDB) in April.
The mission aims to mobilize at least $90 billion in capital from multilateral development banks, development agencies, financial institutions, private companies, and philanthropies, with support from the Rockefeller Foundation.
Kevin Kariuki, the AfDB’s Vice President for Infrastructure, highlighted the importance of expanding and upgrading electricity grids at the lowest possible cost. “We want to expand and rehabilitate our electricity grids using the least cost possible,” he said during the African heads of state energy summit in Tanzania’s commercial capital.
Nigeria, Senegal, Zambia, and Tanzania are among the countries committed to reforming their electricity utility companies, advancing renewable energy integration, and increasing national electricity connection goals.
Multilateral development banks and commercial banks present at the summit will leverage these commitments to encourage their clients to invest in Africa’s energy sector, according to World Bank President Ajay Banga.
Banga emphasized that connecting 300 million people to electricity is crucial for Africa’s development, as it will generate new jobs and improve livelihoods. “The World Bank plans to allocate $30-40 billion toward this initiative,” Banga shared, while the AfDB will contribute $10-15 billion. The rest of the funding will come from private investors and other sources.
Banga also stated that the World Bank will disburse funds to countries only after they implement necessary regulatory and policy changes.
Historically, private capital has been deterred by unfriendly regulations, bureaucratic red tape, and currency risks, which have made investments in Africa’s electricity sector challenging.
According to the World Bank and AfDB, half of the 300 million targeted new connections will be served by existing national grids, while the other half will come from renewable energy sources, including wind and solar mini-grids.
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