On Monday, several African countries pledged to open their electricity sectors to investors and provide electricity to 300 million people currently without energy within the next six years.
The continent is home to the largest number of people without electricity in the world and is working to connect homes to electricity by 2030 under a plan called "Mission 300," launched by the World Bank and the African Development Bank in April.
According to the Rockefeller Foundation, a partner in the initiative, it aims to attract at least $90 billion in capital from multilateral development banks, development agencies, financial institutions, private companies and philanthropic foundations.
Kevin Kariuki, vice president for infrastructure at the African Development Bank, told the African Heads of State Energy Summit in Tanzania's economic capital: "We want to expand and rehabilitate electricity networks at the lowest possible cost."
Nigeria, Senegal, Zambia and Tanzania were among 12 countries that committed to reforming their power utilities, boosting renewable energy and raising their national electricity connection targets.
World Bank President Ajay Banga said multilateral development banks and commercial banks represented at the summit would use the country commitments to convince their clients to invest in Africa's energy sectors.
Banga added that providing electricity to about 300 million people is a critical cornerstone to boost development in Africa by creating new job opportunities.
He explained that the World Bank plans to spend between $30 billion and $40 billion on the plan, while the African Development Bank will contribute $10 billion to $15 billion, with the rest funded by private investors and other sources.
"The World Bank will only provide financial support to countries if they make the necessary (regulatory and policy) changes," he said.
In the past, the private sector has often pointed to complex regulations, bureaucracy and currency risks as major obstacles to investment in Africa's power sector.
According to the World Bank and the African Development Bank, half of the targets will be met through existing national electricity grids, while the other half will come from renewable energy sources, including wind and solar microgrids.
By our partner Nidaa al Watan (with Reuters)
