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The Africa Daily Post > Business > Energy > AIIB, IsDB Commit $6 Billion for Africa’s Power Expansion
East AfricaEnergy

AIIB, IsDB Commit $6 Billion for Africa’s Power Expansion

Kholofelo Morena
By Kholofelo Morena Published January 29, 2025 2 Min Read
Delegates attend the Africa Energy Summit in Dar es Salaam, Tanzania January 27, 2025. REUTERS/Emmanuel Herman/
Delegates attend the Africa Energy Summit in Dar es Salaam, Tanzania January 27, 2025. REUTERS/Emmanuel Herman/
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DAR ES SALAAM, Jan 28 – The Islamic Development Bank (IsDB) and the Asian Infrastructure Investment Bank (AIIB) have committed $6.15 billion to support efforts to connect 300 million Africans to electricity over the next six years.

The funding, announced at a summit of African heads of state in Tanzania, will contribute to Mission 300, an initiative launched by the World Bank and the African Development Bank (AfDB) in April. The project, estimated to cost $90 billion, is being financed through a combination of development banks, private sector investments, and philanthropic contributions, according to the Rockefeller Foundation, a key partner in the initiative.

IsDB Chairman Muhammad al Jasser confirmed the Jeddah-based bank’s commitment of $2.65 billion in project financing, along with an additional $2 billion to insure power infrastructure in Africa. AIIB, headquartered in Beijing, has pledged between $1 billion and $1.5 billion in financing.

“Six hundred million people in Africa without access to electricity is intolerable,” AIIB President Jin Liqun stated at the summit. The new financial commitment adds to the $48 billion already pledged by the World Bank and the AfDB, with officials anticipating additional funding announcements before the summit concludes.

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Providing electricity to 300 million people—half of those currently without power in Africa—is expected to be a major step for economic growth, according to World Bank President Ajay Banga. Increased access to energy will not only light up homes and businesses but also create jobs and drive industrial development.

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Kholofelo Morena
By Kholofelo Morena
Southern African Correspondent based in Johannesburg
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