Powering Africa: the role of the World Bank

No nation can develop if it is not able to provide sufficient energy for its industries to create wealth. This is also one of the conclusions of many World Bank studies that energy and development issues cannot be separated. But beyond these various studies conducted by the Bretton Woods institution, it is interesting to ask whether the actions undertaken by the World Bank would be one of the solutions to solve the electrification problems in Africa.

#Energy access is the heart also of development, it provides the opportunities for economic growth. However, today about 733 million people still lack electricity worldwide, 3/4 of them are living in sub-Saharan Africa and that means that all the potentials that people normally would have, are being denied to hundreds of millions of Africans. In addition, we see that in sub-Saharan Africa 30 to 40% of the food is lost because it cannot reach market, partly also due to the lack of irrigation that requires electricity and so the overall losses are in some countries sometimes estimated in the order up to 4% of GDP and that is simply not acceptable.

Although the challenge is huge, it is possible to do more, since there are good examples worldwide such as Vietnam which increased access to electricity very quickly after its revolution. Another good news is that this progress is happening also in Africa. Rwanda in 15 years, increased access to electricity from 6% to 60% and we're also seeing very encouraging progress in electrification in Kenya and Uganda. Nowadays, about 30 million people every year are getting access to electricity in Africa. Beyond these rather encouraging statistics, there is a need to create an Africa-wide effort in which piecemeal approaches are replaced by a strategic approach to see how the whole, government, private sectors, international organizations, such as the World Bank, can work together and find grid and off-grid solutions.

1. At the World Bank level, its commitment to a portfolio of activities up to 8 billion will, on completion, enable 75 million people to have access to electricity and in the next three years, they would like to invest in Africa with either resources up to $65 billion and significant part being directed to energy access.
2. The bank is also acting as a think tank to encourage governments to define different solution, clear policies and to look beyond national borders, such as interconnectivity projects which will create the certainty for investments.
3. On 9 November, the bank announced an initiative to accelerate the pace of electrification in Africa to achieve universal access by 2030. The Decentralized Access through Renewable Energy Scaling (DARES) initiative, a platform that involves governments, private investors and development agencies to address Africa's immediate electricity needs, will benefit 100 million people.
4. The World Bank has stepped up its efforts to bring private finance to fragile states. In 2017, a $2.5 billion IDA18 IFC-MIGA Private Sector Window (PSW) was created to catalyze private sector investment in IDA-only countries, with a focus on fragile and conflict-affected states (FCs).

Africa is lagging behind in its electrification challenge compared to other continents. Although significant progress has been observed in recent years, much remains to be done and the various initiatives taken by different development agencies on the continent are to be commended. In particular, the participation of the World Bank in the last COP27 in Cairo, Egypt, has made it possible to understand the involvement of the Bank in promoting electrical energy for all in Africa. Indeed, the Bank is invested through multiple channels, ranging from direct investments to government support. However, as it is important to remember, the answer lies in a real willingness of African states to find a sustainable solution through a well-structured vision, national and regional programmes. Finally, the involvement of the private sector will have a big part to play in achieving the objectives in view of its enormous potential. Africa must understand that its development and access for all to electricity will not be achieved without itself and it must be able to capitalize on all the forces present for a sustainable solution.

#Energyaccess #infrastructure #economicgrowth