Clean energy: who will benefit from the $300m IDA loan in East Africa?

As part of a regional program, the World Bank is providing a $300 million credit facility to the Trade and Development Bank (TDB). This initiative finances access to renewable energies, including clean cooking, in Eastern and Southern Africa.

Targeting an overall investment of $5 billion, this regional program will contribute to the achievement of Sustainable Development Goal 7 (SDG7) on “universal access to reliable, sustainable and modern energy services at affordable cost”. In Eastern and Southern Africa, the ASCENT program is implemented by the secretariat of the Common Market for Eastern and Southern Africa (COMESA). TDB will participate by providing direct loans to the private sector, co-financing or on-lending via other financial intermediaries.

The $300 million in financing provided by the World Bank Group subsidiary is expected to provide access to electricity for at least 5 million people, access to clean cooking for 1 million people, and add up to 35 MW in energy capacity within the COMESA member states. These countries include Burundi, the Democratic Republic of Congo (DRC), Ethiopia and Zambia, where access to clean energy remains a challenge.