Financiers commit over $50 billion for Africa electricity connections

Multilateral lenders and global development finance institutions have pledged over $50 billion towards the Mission300 project that aims to connect at least 300 million Africans to energy by 2030, more than halving the continent’s energy access gap.

The financiers, including the World Bank, the African Development Bank (AfDB), the French Development Agency (AFD), the Islamic Development Bank (IsDB), the Asian Infrastructure Investment Bank (AIIB), and the OPEC Fund, are already financing projects on the continent, but have now committed to channelling more funds towards bridging the continent’s energy gap.

The financiers made their pledges during the Mission300 Africa Energy Summit in Dar es Salaam, Tanzania on Monday, vowing to finance the dream coined by the African Development Bank and the World Bank to cut Africa’s energy access by over half in the next five years.

The World Bank will give $22 billion, while the AfDB will give $18.2 billion through concessional loans or grants to countries for the improvement of energy infrastructure and management of utilities.

Jeddah-based IDB has pledged the highest amount yet, with over $2.65 billion to be committed directly to the goal over the period, money that will mostly be lent to countries on concessional terms.

IDB President Muhammed Al-Jasser said $1 billion of the money will come from the bank itself, $1.5 billion from its trade financier, the International Islamic Trade Finance Corporation (ITFC), and $150 million from its commercial arm.

The commitment, he said, reflected the importance that the bank puts on electricity access, and an indication that it wants to pay more attention to the sector.“Electricity is one component that we have not paid sufficient attention to. It’s the bloodline of development, it is a human right, it’s a prerequisite of any activity,” he told the forum in Dar es Salaam on Monday.

Beijing-based AIIB, which has over ten members drawn from Africa, including Kenya which joined last year, pledged $1 billion towards the mission.

Read: Why 571m Africans still face dark nightsJin Liqun, AIIB president, said the bank is already considering projects in several countries on the continent, including in Kenya and Rwanda.

The OPEC Fund for Development also pledged $1 billion, with the possibility of adding another $1 billion over the next two years based on how African countries will commit to the mission and milestones made with the compacts made in the Dar summit.

French President Emannuel Macron also announced on Tuesday that the nation’s development agency AFD will be contributing $1.04 billion (€1 billion) towards the project.“Access is the cornerstone of a broader just energy transition that drives sustainable and inclusive development across the African continent and beyond. Mobilising for millions of households to have energy is a crucial solidarity-based investment,” noted AFD chief executive Remy Rioux.

Foreign governments, including Norway, the United Kingdom, Germany and Italy, also made commitments to support the goal, either directly through aid and financing to countries or the through empowerment of multilateral organisations tasked with strengthening energy access.

The Norwegian ministry of international development said it will increase its funding to the Energy Sector Management Assistance Programme by about $27 million, while the UK said it will add an additional $8.5 million to the Sustainable Energy Fund for Africa. Provided by SyndiGate Media Inc.

Cover photo: From MSN