Tanzania, Rwanda, Somalia, and Sao Tome and Principe have been selected as the pioneering countries for a groundbreaking World Bank initiative aiming to bring clean energy to over 100 million people in Sub-Saharan Africa by 2030.
The program, called Accelerating Sustainable and Clean Energy Access Transformation (Ascent), was unveiled during the International Development Association's mid-term review meeting of its 20th financing round in Zanzibar, announced by World Bank Group President Ajay Banga.
The USD 15 billion initiative, where $5 billion will be funded by the International Development Association (IDA) and the rest from various partners, seeks to address the critical issue of energy access in a region where only 48 percent of the total population and a mere 26 percent in rural areas have electricity.
While acknowledging the enormity of the challenge, Banga emphasized this as a crucial beginning and an opportunity to attract more partners to join similar investments in solving Africa's energy crisis.
Described as a "game-changer," Ascent aims to tackle the region's energy shortfall, recognized as a significant impediment to economic growth and poverty alleviation. It underlines the detrimental effects on food security due to lack of refrigeration and its impact on healthcare, with less than half of the region's hospitals having reliable electricity.
Victoria Kwakwa, the World Bank's vice-president for Eastern and Southern Africa, highlighted the leverage potential, stating that IDA's USD 5 billion will be multiplied to USD 10 billion using resources from various lending arms, public and private partners, such as the International Finance Corporation and Multilateral Investment Guarantee Agency.
The program's strategy focuses on creating platforms for economies of scale, expanding grid electrification, and implementing financing strategies targeting households, businesses, farmers, schools, health facilities, and other essential services.
Moreover, the program prioritizes empowering women, recognizing their disproportionate vulnerability due to energy access challenges, by providing additional income-generating opportunities.
This comprehensive initiative intends to expedite the global transition to clean energy by combining global and local expertise, adopting a tailored approach to support countries in achieving their energy access goals.