The European Investment Bank (EIB) and the Rockefeller Foundation have announced over $1.16 billion in new funding this March to tackle energy poverty across sub-Saharan Africa.
This financial surge supports the “Mission 300” initiative. The World Bank and African Development Bank want to connect 300 million people in Africa to electricity by 2030.
Currently, more than 730 million people worldwide lack power.
Meanwhile, approximately 600 million of those affected reside in Africa, where limited access stifles healthcare and job creation.
The new funds will deploy across at least 15 countries.
These projects focus on hydropower, solar, wind, and the expansion of national grids to reach underserved settlements.
“This funding is Europe’s commitment to provide cleaner, more affordable, and reliable energy for hundreds of millions of people in Africa,” EIB President Nadia Calviño said.
“African governments are choosing to transform their energy sectors by committing to national energy compacts,” added William Asiko, vice president at the Rockefeller Foundation.
Mini-Grids And The Last Mile Strategy
According to African Business, the investments prioritize decentralized solutions like mini-grids. These community-level systems generate and distribute electricity locally using hybrid energy.
In Kenya, the Last Mile Connectivity program has already demonstrated significant results. Rural access rose to 68% in 2023, up from a staggering low of 7% in 2010.
Agnes Mbesa, a mother of three in the Mathare settlement, saw her life change in 2021. She transitioned from smoky kerosene lamps to a single, reliable electric bulb.
“Before the power came, we closed early because it was too dark,” Mbesa said while describing her small veranda shop.
“Now people come even at night, and I can earn something. Electricity changes everything. Once you have it, life starts moving forward,” she added.
The program often covers the standard ₦185,000 ($115) connection fee for low-income households.
This policy ensures that the poorest residents are not left behind during grid expansion.
Unlocking Economic Potential Through Power
In western Kenya, fisherman Samuel Oketch uses a solar mini-grid to power a freezer. Consequently, he no longer sells his catch at low prices to avoid spoilage.
“These small changes mean a lot,” Oketch said. “Electricity gives us options. My wife can now sell without being taken advantage of by brokers who had the freezers.”
The Mission 300 Accelerator is now providing technical assistance to governments in Malawi and Liberia.
Furthermore, Nigeria and Senegal are receiving support for local currency financing.
Andrew Herscowitz, CEO of the Mission 300 Accelerator, believes scaling access requires more than just cash.
He alleged that stronger implementation and monitoring are vital.
“Energy access is key to unlocking human potential and economic development,” Herscowitz stated during a recent energy summit in Cape Town.
The World Bank plans to expand these renewable projects to 20 countries over seven years. Currently, only 26% of rural populations in eastern and southern Africa have power.
“The GIFSHIP package is a strategic step to strongly focus on the objectives of making healthcare affordable, accessible, and equitable,” officials alleged in related policy briefs.
With $1.15 billion now pledged for African energy, do you believe that decentralized solar mini-grids are a more sustainable solution than traditional national grid expansion?
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