The Islamic Development Bank (IsDB) and the Asia Infrastructure Investment Bank (AIIB) have announced a pledge of about $6.15 billion in funding for an initiative to connect 300 million Africans to electricity in the next six years.
AIIB and IsDB jointly declared their commitment to increased cooperation during a summit of African heads of state held in Tanzania on Tuesday, according to a Reuters report.
During the summit, Muhammad Sulaiman Al Jasser, chairman of the IsDb, said that the Group is taking bold action with a commitment of $2.65 billion, backed by $2 billion in insurance coverage for Africa’s electricity sector.
In addition, Beijing-based AIIB is set to provide $1-1.5 billion in financing.
“Six hundred million people in Africa without access to electricity is intolerable,” said AIIB President Jin Liqun.
The additional funding builds on up to $48 billion in commitments from the World Bank and the African Development Bank, according to summit officials, who estimate that further funding commitments will be disclosed during the event.
Mission 300 was launched by the World Bank and the African Development Bank (AfDB) in April 2024 with the goal of raising $90 billion for electricity projects across Africa.
Funding will come from grants and facilities provided by multilateral development banks, development agencies, private businesses, and philanthropies such as the Rockefeller Foundation.
In the first phase of the project, twelve nations will implement strategic policies in their power sectors to fulfill their energy agreements and qualify for funding.
The first twelve countries are Chad, Côte d’Ivoire, the Democratic Republic of Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia.
Other African countries are anticipated to form their own compacts in following rounds.
Moreover, World Bank President Ajay Banga stated during the summit that providing 300 million people with access to electricity—half of those currently without power on the continent—is a crucial step in boosting Africa’s development by creating new jobs.
Apart from lighting up homes and businesses, Mission 300 is projected to increase the availability of clean cooking energy in homes, reducing dependency on damaging wood and charcoal, according to Tanzania’s president, Samia Suluhu Hassan.
Sulaiman Al Jasser further explained that the multi-pronged approach focuses on renewable energy development, rural electrification, and leveraging Islamic finance instruments to mobilize private sector capital and scale transformative projects.
“This strategic investment will de-risk projects, unlock private capital, and drive transformative energy solutions at scale. Building on our cumulative USD 33.5 billion financing for 622 energy projects across 25 African countries, we are determined to power a new era of opportunity,” said Al Jasser.
