HomeEconomyEnergyAFRICAN DEVELOPMENT BANK TO INVEST $58 MILLION TO EXPAND CLEAN ELECTRICITY AND...

AFRICAN DEVELOPMENT BANK TO INVEST $58 MILLION TO EXPAND CLEAN ELECTRICITY AND SUPPORT RURAL ECONOMIC GROWTH IN ERITREA

The African Development Bank Group (AfDB) has approved $58.04 million to expand access to reliable and clean electricity in three towns in Eritrea’s southwest Gash Barka region, under the Eritrea Energy Integrated Project covering Tesseney, Kerkebet, and Berantu.

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Signed on 18 February 2026, the financing includes a $37.31 million African Development Fund grant and a $20.73 million grant from the Bank’s Transition Support Facility. The project will deploy a 34-megawatt solar-powered mini-grid system, strengthening distribution networks and expanding local energy capacity to deliver affordable, reliable electricity to households and businesses.

The initiative will support clean water pumping, improve irrigation and agricultural productivity, and enable small enterprises and agro-processing activities to extend operating hours and reduce costs. Additionally, 542 kilometres of electricity distribution lines will be constructed or upgraded.

The project is expected to generate jobs during both construction and operational phases, strengthen local technical skills, and support growth of small enterprises linked to renewable energy services. Over time, it will reduce greenhouse gas emissions and contribute to Eritrea’s transition toward a low-carbon, climate-resilient economy. In total, the project is anticipated to benefit around 306,000 people.

The Eritrea Energy Integrated Project is part of AfDB’s Desert to Power initiative, which links energy access with agro-processing, irrigation, and local industrial development to drive broader socio-economic transformation.

Kevin Kariuki, AfDB Vice President for Power, Energy, Climate & Green Growth, said, “This timely investment will help deliver reliable and affordable clean power to communities in Eritrea that need it most, spurring job creation, strengthening local economies, and supporting a sustainable energy future.

About Desert to Power
Desert to Power is a flagship renewable energy and economic development initiative by the AfDB that seeks to harness the vast solar energy potential across eleven Sahel countries, including Burkina Faso, Chad, Djibouti, Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal, and Sudan. The initiative aims to increase electricity access across the Bank Group’s regional member countries, in partnership with the Mission 300 programme alongside the World Bank, which targets electricity delivery to 300 million additional Africans by 2030.

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