World Bank, AfDB to connect 300 million Africans to power grid

Banga stressed that access to electricity is a fundamental human right and is foundational to any successful development effort.

The World Bank Group and African Development Bank plan to connect at least 300 million Africans to the electric power grid by 2030.

On Wednesday, the World Bank Group President, Ajay Banga, said the global lender would connect over 250 million people through the investment inrenewable energy systems while the African Development Bank Group will support an additional 50 million people.

He added that the partnership is a demonstration of the determination of the World Bank Group and the African Development Bank Group “to be bolder, bigger, and better in tackling one of the most pressing challenges in Africa.”

He said the initiative is the most recent manifestation of the World Bank Group’s commitment to becoming more impact-oriented and is the byproduct of a concerted work plan to build a better bank. It is aided by a constellation of regional energy programs that will now be aligned toward this common goal. 

Banga stressed that access to electricity is a fundamental human right and is foundational to any successful development effort.

“Currently, 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and ultimately job creation,” he said.

The World Bank boss highlighted that for the World Bank Group to connect 250 million people, $30 billion will be needed for the public sector investment, of which IDA, the World Bank’s concessional arm for low-income countries, will be critical.

In addition, governments will need to put in place policies to attract private investment and reform their utilities so they are financially sound and efficient with tariff mechanisms that protect the poor. 

“Electricity access is the bedrock of all development. It is a critical ingredient for economic growth and essential for job creation at scale. Our aspiration will only be realized with partnership and ambition,” he said.

“We will need policy action from governments, financing from multilateral development banks, and private sector investment to see this through,” said Banga.

He said connecting 250 million people to electricity would open private sector investment opportunities in distributed renewable energy alone worth $9 billion. Beyond that, there would be substantial opportunities for private investments in grid-connected renewable energy needed to power economies for growth.

Utilities

“Currently, 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and ultimately job creation.”- Ajay Banga (World Bank Group President)