The World Bank has announced that it has concluded plans to allocate $5 billion to bring electricity to 100 million people in Africa by the end of the decade (2030).
This was made known by the President of the World Bank, Ajay Banga, while delivering his speech at the mid-term review of the International Development Association (IDA)’s $93 billion replenishment package on Wednesday, December 6, 2023, in Zanzibar, Tanzania.
Banga emphasized the importance of utilizing funds from the bank’s IDA, which offers zero- or low-interest loans to low-income countries, and urged donor countries and philanthropies to provide increased support. He acknowledged the need for deeper contributions to help IDA achieve improved development outcomes for low-income countries.
Highlighting the limits of concessional resources, Banga called for a shift in the evaluation of the World Bank’s performance towards focusing on outcomes rather than the number of projects or dollars disbursed. He cited the example of an IDA-financed mini-grid providing electricity to rural communities in Nigeria and expressed the desire to replicate such platforms on a larger scale.
Banga stressed the urgency of addressing the lack of reliable electricity access, especially in Africa, where 600 million people, including 36 million in Tanzania, still lack access. The World Bank aims to invest $5 billion to deliver affordable renewable electricity to 100 million Africans before 2030.
As the 20th IDA funding round is set to conclude on June 30, 2025, Banga used the Zanzibar conference to advocate for the subsequent funding round to exceed $93 billion, emphasizing the need for increased financial support.