$8 Billion Pledged for Africa’s Energy Expansion

January 29, 2025 • Estimated Reading Time: 2 minutes

Key Figures & Findings: The Mission 300 initiative, launched by the World Bank and African Development Bank (AfDB), has secured over $8 billion in new funding to connect 300 million Africans to electricity by 2030. Major contributors include the Islamic Development Bank (IsDB) with $2.65 billion in project financing and an additional $2 billion in insurance, the Asia Infrastructure Investment Bank (AIIB) pledging up to $1.5 billion, and the French Development Agency (AFD) committing $1.04 billion. The OPEC Fund for International Development has also contributed $1 billion. These investments add to the $48 billion previously committed by the World Bank and AfDB.

Insights: Africa currently has 600 million people without electricity, and Mission 300 aims to provide access to half of them. About 50% of new connections will come from existing national grids, while the other half will be supplied through renewable energy solutions like wind and solar mini-grids.

Future Implications: If successfully executed, this initiative could significantly boost economic development and reduce dependence on wood and charcoal for cooking. However, financial constraints in many African economies may pose challenges to full implementation, requiring sustained investment and strategic planning.