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Africasti > Blog > Energy > African Leaders Commit to Spend $50 Billion On Energy Transformation
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African Leaders Commit to Spend $50 Billion On Energy Transformation

Last updated: January 31, 2025 4:23 pm
By Africasti
Published: January 30, 2025
Last updated: January 31, 2025
6 Min Read
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..Summit aims to connect 300 million people in Africa to electricity

 

By Esther Samson

In a historic move to tackle Africa’s energy deficit, thirty African Heads of State and government have come together to pledge decisive actions aimed at providing millions of people across the continent with access to reliable, affordable, and sustainable electricity.

The commitment was made during the two-day Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania, with more than $50 billion pledged by global partners to support the initiative.

The summit culminated in the signing of the Dar es Salaam Energy Declaration, which sets a clear pathway to address the continent’s energy gap, where over 600 million people currently live without electricity.

The declaration is a key part of the Mission 300 initiative, a bold effort to connect 300 million Africans to electricity by 2030. As noted in the declaration, “The commitments in the Declaration are a critical piece of the Mission 300 initiative, which unites governments, development banks, partners, philanthropies, and the private sector to connect 300 million Africans to electricity by 2030.”

In a show of unity, twelve African countries—Chad, Côte d’Ivoire, Democratic Republic of Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia—presented detailed National Energy Compacts.

These country-specific action plans, designed to boost electricity access, harness renewable energy potential, and attract private investment, serve as a roadmap to implement the broader Mission 300 goals.

The plans are time-bound, data-driven, and emphasize regional energy integration, utility efficiency, and the expansion of clean cooking solutions.

Speaking at the summit, Tanzania’s President H.E. Dr. Samia Suluhu Hassan expressed her pride in hosting the event, saying, “Tanzania is honored to have hosted such a monumental summit to discuss how, as leaders, we will be able to deliver on our promise to our citizens to provide power and clean cooking solutions that will transform lives and economies.”

The summit also marked an important moment for international collaboration, with key global financial institutions announcing substantial commitments to back the Mission 300 initiative.

The African Development Bank (AfDB) and the World Bank Group pledged a combined $48 billion in financing to support energy access across the continent through 2030.

Dr. Akinwumi Adesina, President of the African Development Bank, emphasized the urgency of these efforts, saying, “Critical reforms will be needed to expand the share of renewables, improve utility performance, ensure transparency in licensing and power purchase agreements, and establish predictable tariff regimes that reflect production costs.”

Other significant contributors included the Agence Française de Développement (AFD), which committed €1 billion, and the Islamic Development Bank (IsDB) Group, which allocated $2.65 billion to fund the initiative from 2025 to 2030.

Additionally, the OPEC Fund pledged an initial $1 billion in support, with more financing anticipated. The Asian Infrastructure Investment Bank (AIIB) also committed between $1 billion to $1.5 billion to the effort.

A notable highlight of the summit was the launch of Zafiri, an investment company jointly established by the World Bank Group and the AfDB. Zafiri aims to bridge the equity gap in Africa’s energy markets by supporting private sector-led solutions, such as renewable mini-grids and solar home systems.

The company’s anchor partners will invest up to $300 million in the first phase, with plans to mobilize up to $1 billion in subsequent phases to address the continent’s energy access challenges. “Our collective effort is to support you, heads of state and government, in developing and implementing clear, country-led national energy compacts to deliver on your visions for electricity in your respective countries,” said Dr. Adesina.

President of the World Bank Group, Ajay Banga, also underscored the importance of these efforts, stating, “Access to electricity is a fundamental human right. Without it, countries and people cannot thrive. Our mission to provide electricity to half of the 600 million people in Africa without access is a critical first step. To succeed, we must embrace a simple truth: no one can do it alone.”

The Mission 300 summit, hosted by Tanzania in partnership with the African Union, the African Development Bank Group (AfDB), and the World Bank Group (WBG), was also supported by organizations such as the Rockefeller Foundation, ESMAP, the Global Energy Alliance for People and Planet (GEAPP), and Sustainable Energy for All (SEforALL).

The Dar es Salaam Energy Declaration will now be presented at the African Union Summit in February for formal adoption, marking a crucial next phase in Africa’s journey toward a sustainable, energy-powered future.

With strong government leadership and unprecedented global financial backing, the Mission 300 initiative is poised to deliver tangible benefits to millions of Africans, spurring economic growth, job creation, and improved quality of life across the continent.

TAGGED:AfricanDar es SalaamEnergy

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