The World Bank has announced plans to invest between $30 billion and $40 billion in electricity projects across Africa, as part of its commitment to tackling energy poverty on the continent.
The disclosure was made by the bank’s President, Ajay Banga, during the Energy Summit in Tanzania, where he said electricity is a foundation for development and human dignity.
Speaking at the event, Banga said electricity is essential for unlocking Africa’s potential, particularly in creating jobs for its rapidly growing youth population. He mentioned that providing reliable energy access is a critical step toward addressing unemployment, poverty, and inequality.
“Electricity is a human right,” Banga said. “You cannot have jobs without electricity. It gives you energy for education, healthcare, skilling, and digitization. Poverty is not just a state of being; it destroys your mind. A job is not just a ticket out of poverty; it is a ticket into dignity.“
Moreover, Banga outlined a three pronged approach to achieving the World Bank’s energy vision.
He explained that the bank’s investment would be tied to policy reforms in participating countries, ensuring that governments follow through on their commitments.
“We will pay for results,” he said. “We’re not going to put the money upfront and just trust that policy reforms will happen. Instead, we’ll provide the funds to create the fiscal headroom countries need to make those changes.”
He also noted the importance of engaging other multilateral development banks, commercial banks, and private investors in the process.
“The private sector has to have the faith and trust that this is real and serious,” Banga stated.
The World Bank has been working closely with the International Monetary Fund (IMF) to provide initial financial support, enabling countries to implement necessary reforms while expanding access to electricity.
Banga also spoke about the broader vision of leveraging electricity to drive digital connectivity across the continent. He explained that the World Bank’s energy initiative would support the deployment of solar energy solutions, cell towers, and satellite connectivity to bridge the digital divide.
“One of the things we’re planning to do is to put cell phone towers into all the locations where we deploy distributed solar energy,” he said. “If we can connect 300 million people to electricity and digital access over the coming years, we can transform Africa’s potential for jobs and opportunities.”
Banga stated that the summit’s goal was to inspire confidence in stakeholders about the World Bank’s commitment to addressing Africa’s energy challenges. “We are putting our money where our mouth is. This is not empty talk,” he added.
