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.
With 550 million Africans still without access to electricity, the Trade and Development Bank (TDB) is securing a $300 million credit facility from the World Bank for action in Eastern and Southern Africa. The funding, provided under the ASCENT (Accelerating Sustainable and Clean Energy Access Transformation) program, will benefit companies in “eligible countries” of the International Development Association (IDA).
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.
Electrifying 5 million people
The TDB will also provide loans under the facility to private companies developing renewable energy and clean cooking projects. Most of the loans will be granted through the TDB Group’s Trade and Development Fund (TDF). According to the bank, “catalytic performance-based grants will be made available to support companies entering new markets to pilot promising innovations and help the private sector grow”.
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.
In Somalia, the ASCENT program is being financed to the tune of $100 million for the construction of solar power plants and battery power storage systems in the capital Mogadishu and other major load centers in the country’s federated states. Through this regional program, IDA has set itself the goal of providing access to electricity for 100 million people in 20 countries by 2030.
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