Political Commitment and Financing: Key Barriers to Universal Energy Access in Africa

World Bank highlighted that achieving universal energy access in Africa requires governments to prioritize electricity as a public good. Emphasizing the need for strong political will and financial support, Njagi pointed out that these are the most critical factors to overcome Africa’s energy access challenges.

In a panel discussion at the African Energy Expo taking place in Kigali from 4 to 6 November 2024, on session entitled ‘Achieving universal energy access in Africa’, Laurencia K. Njagi, Senior Energy Specialist at the World Bank, shed light on the urgent barriers preventing universal electricity access across Africa.

According to Njagi,"One major barrier has been political commitment. Many African countries have only recently recognized electricity access as a public good rather than a privilege."

Njagi noted that political commitment is essential to mobilizing the resources needed to expand energy access. While access to electricity is vital for economic and social development, achieving this goal is hindered by limited government investment in the energy sector.

"Without consistent government support, financing remains a significant hurdle," she explained.

An estimated $100 billion is required to electrify Africa’s eastern and southern regions alone, she said, highlighting the scale of the challenge.

Despite the commitment from international institutions like the World Bank, which has allocated close to $15 billion for electricity access in Africa over the past four years, more funding is needed.

"Households and utilities alone can’t raise these funds, making government support essential," Njagi said.

Njagi pointed out that the need for supportive tariff frameworks and creditworthy utilities also limits private sector engagement.

"In regions where utilities struggle with financial sustainability, attracting private investment becomes difficult," she said.

The World Bank has taken steps to mitigate these challenges by offering concessional financing, de-risking investments, and partnering with governments to develop sustainable solutions.

Njagi urged African governments to recognize energy as a public good essential to national development. Without strong political commitment and financial backing, achieving universal energy access will remain a distant goal.

She emphasized the World Bank’s role in fostering this commitment by supporting countries with policy advice, financial resources, and strategies for engaging the private sector.

The panel closed with a reminder of the urgency of the Mission 300 initiative, which aims to electrify 300 million African households by 2030, spearheaded by the World Bank and the African Development Bank.