The World Bank Group announced Wednesday it is partnering with the African Development Bank Group (AfDB) in an ambitious effort to provide at least 300 million people in Africa with electricity access by 2030.
The bank, in a statement on Wednesday, said it will work to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid while the African Development Bank Group will support an additional 50 million people.
The bank noted that access to electricity is a fundamental human right and is foundational to any successful development effort.
According to the statement, 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 at tackling one of the most pressing challenges in Africa.
It said the initiative is the most recent manifestation of the World Bank Group’s commitment to become 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 programmes that will now be aligned toward this common goal.
“For the World Bank Group to connect 250 million people, $30 billion of public sector investment will be needed, of which IDA, the World Bank’s concessional arm for low-income countries, will be critical,” the statement said.
In addition, it said 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.
It explained that connecting 250 million people to electricity would open private sector investment opportunities in distributed renewable energy alone worth $9 billion.
Beyond that, the bank said there would be substantial opportunities for private investments in grid-connected renewable energy needed to power economies for growth.
“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. We will need policy action from governments, financing from multilateral development banks, and private sector investment to see this through,” Ajay Banga, World Bank Group President, said.
