KEY POINTS
- African nations pledge to connect 300 million people to electricity.
- Mission 300 aims to raise $90 billion for energy infrastructure.
- Renewables like solar and wind are critical for sustainable power access.
African nations have pledged to bring electricity to 300 million people by 2030, addressing a major development challenge in a continent where energy access remains limited.
At the Africa Energy Summit in Dar es Salaam on January 27, heads of state from countries such as Nigeria, Senegal, Zambia, and Tanzania laid out commitments to reform their electricity sectors, integrate renewable energy, and expand national grids.
The initiative, named “Mission 300,” was launched in April 2024 by the World Bank and the African Development Bank (AfDB). It seeks to mobilize $90 billion from development banks, private investors, and philanthropies to finance grid expansions and renewable energy projects across the continent.
Kevin Kariuki, vice president for infrastructure at the AfDB, emphasized the importance of cost-effective solutions to achieve these ambitious goals, stating, “We want to expand and rehabilitate our electricity grids using the least cost possible.”
Addressing regulatory and investment challenges
One of the biggest hurdles to unlocking private investment in Africa’s electricity sector has been cumbersome regulations and currency risks.
World Bank President Ajay Banga stressed the importance of policy changes, stating that financial support from the World Bank will be contingent on countries implementing the necessary reforms to create an investor-friendly environment.
“The World Bank will pay countries as part of our support only when they make the regulatory and policy changes,” Banga said.
According to Reuters, the bank has committed $30-40 billion to the initiative, with the AfDB adding $10-15 billion. Moreover, private investors are expected to close the remaining funding gap.
Half of the planned new electricity connections will come from national grids, while the other half will rely on renewable energy sources like solar and wind mini-grids. However, these renewable options aim to provide a sustainable and climate-resilient path to development.
A transformative vision for Africa’s future
Providing power access to 300 million people at once through Mission 300 stands as the continent’s vital economic growth catalyst by reaching half of all unserved electrical customers.
Through its power delivery system to residential and commercial establishments as well as educational institutions, the initiative intends to advance productivity and job market expansion while delivering better living standards.
Private capital, often deterred by Africa’s challenging investment landscape, is now being encouraged to take part in this transformative effort through commitments made by governments and financial institutions at the summit.
