The African Development Bank (AfDB) has embarked on a fund-raising drive to finance the expansion of renewable energy as part of a larger plan titled ‘New Deal on Energy for Africa’ which aims to ensure electricity provision to over 205 million people in Africa by 2025,
The financial institution is helping countries in Africa to develop new models for financing energy initiatives, with the ultimate objective of enabling private firms to increasingly provide funding for energy projects.
AfDB president, Akinwumi Adesina, said the bank had identified the lack to power as a critical challenge undermining efforts develop industrialisation and agriculture on the continent.
“One of the most important challenges Africa is facing is lack of energy. Access to energy is a critical enabler of development because it is key to increasing the productivity of farmers and manufacturers, thus boosting transportation and revenue,” he said, highlighting that an off-grid electricity power solution was the quickest path to that goal.
