IN a significant move, the World Bank has unveiled plans to allocate $5bn to electrify 100 million people in Africa by the end of the decade (2030). World Bank President Ajay Banga made this announcement during his speech at the mid-term review of the International Development Association (IDA)’s $93bn replenishment package in Zanzibar, Tanzania, on December 6, 2023.
Banga highlighted the initiative as a key example of how funds from the bank’s IDA, which provides zero- or low-interest loans to low-income countries, can be utilized to drive impactful development outcomes. He emphasised the importance of increased support from World Bank shareholders, donor countries, and philanthropies to help IDA achieve better development outcomes for low-income countries.
During his address, Banga stressed the need for a comprehensive approach, stating, ‘The truth is we are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more.’ He urged a shift in the World Bank’s performance evaluation focus towards improved outcomes rather than merely tracking the number of projects or dollars disbursed.
Banga outlined the significance of replicable platforms, citing an example of an IDA-financed mini-grid delivering electricity to rural communities in Nigeria. He expressed the desire to see such initiatives scaled up, saying, ‘But this is just one example, I want to see 100,000 – 200,000 – half a million more.’ The ambitious goal involves investing $5bn to deliver affordable renewable electricity to 100 million Africans before 2030.
Highlighting the urgency of the electrification initiative, Banga stressed the current challenges, stating, ‘But how can we hope to make even adequate progress while 600 million people in Africa – 36 million of whom live here in Tanzania – still don’t have access to reliable electricity? Put simply: We can’t.’
The ongoing 20th IDA funding round, scheduled for completion on June 30, 2025, is the backdrop for the Zanzibar conference, where Banga launched his campaign for the subsequent round of funding. He urged stakeholders to surpass the current $93bn replenishment. ‘The truth is we are pushing the limits of this important concessional resource and no amount of creative financial engineering will compensate for the fact that we need more funding. This must drive each of us to make the next replenishment of IDA the largest of all time,’ he said.
The call for increased funding aims to accelerate progress and ensure the success of the electrification initiative, marking a pivotal moment in the World Bank’s commitment to sustainable development in Africa.