World Bank Commits $300 Million for Renewable Energy Projects in Eastern and Southern Africa through TDB Partnership
The World Bank has provided roughly USD 300 million to the Eastern and Southern African Trade and Development Bank (TDB) to assist distributed renewable energy (DRE) and clean cooking initiatives in eligible countries through the World Bank’s International Development Association. This effort builds on TDB’s successful financing of off-grid solar projects in 2020, which was funded with USD 415 million. This grant is part of the first phase of the IDA’s USD 5 billion ‘Accelerating Sustainable and Clean Energy Access Transformation’ (ASCENT) programme. ASCENT seeks to bring energy to up to 100 million people in Africa during the next seven years, helping to achieve Sustainable Development Goal 7. The facility is funded by the IDA and a grant from the Energy Sector Management Assistance Programme.
The ASCENT Regional Energy Access Financing Platform (REAF) will be established and executed under the extended facility. This platform seeks to provide electricity to up to 5 million people, clean cooking to up to 1 million people, and an additional 35MW of energy capacity to the region.
Loans from this facility will benefit DRE and clean cooking businesses, with smaller loans accessible to SMEs through the TDB Group’s Trade and Development Fund (TDF). In addition, performance-based grants will be made available to help enterprises penetrate new markets and develop innovative inventions. Technical assistance and capacity building will also be provided to improve sustainability by addressing issues such as climate resilience and gender equality.
Improving energy availability is critical for Africa’s poverty reduction and long-term economic prosperity. It promotes education, inclusivity, job creation, and industrial growth. Access to clean energy is especially crucial for improving health outcomes, particularly among women, by lowering indoor air pollution.
Admassu Tadesse, TDB Group President and Managing Director, emphasised the importance of greater financing to fulfil Africa’s rising energy demand while transitioning to sustainable and renewable energy sources. Boutheina Guermazi, World Bank Director for Regional Integration in Africa and the Middle East, emphasised the need of partnership in ensuring sustainable and affordable energy access in Africa.
Boutheina Guermazi, the World Bank’s Director for Regional Integration in Africa and the Middle East, emphasised the need of sustainable, dependable, and cheap energy access for Africa’s development and poverty alleviation efforts. She emphasised the World Bank’s happiness with the strengthened cooperation with TDB Group and looked forward to working together to unlock additional financing sources for various private sector actors through the new ASCENT Regional Energy Access Financing Platform (REAF).
Guermazi emphasised the need of joint efforts in tackling Africa’s energy access difficulties, as well as the potential for collaborative programmes such as ASCENT to have a significant impact on the continent’s growth trajectory.
Source: World Bank
