WB set to allocate $5bn for electricity project

The World Bank has announced plans to allocate $5 billion to bring electricity to 100 million people in Africa by the end of the decade (2030). This initiative is part of the bank’s broader effort to support development and improve outcomes in low-income countries through its International Development Association (IDA), which provides zero- or low-interest loans.

The President of the World Bank, Ajay Banga, emphasised the importance of increased support from donor countries and philanthropies to achieve these development goals. He highlighted the need for a larger replenishment of the IDA to address the challenges faced by low-income countries, including the lack of access to reliable electricity.

Banga cited the example of an IDA-financed mini-grid project in Nigeria that delivers electricity to rural communities. He expressed the desire to see more such projects, emphasising the importance of focusing on replicable platforms that can bring sustainable development outcomes.

The current IDA funding round is set to be completed by June 30, 2025, and the World Bank aims to secure increased funding in the subsequent round. Banga urged stakeholders to make the next replenishment of IDA the largest ever, emphasising the importance of addressing the critical issue of inadequate access to electricity in Africa.

The $5 billion investment is intended to provide affordable renewable electricity to 100 million Africans before 2030, contributing to the broader development agenda in the region.