How development banks can address Africa’s energy access

In a recent interview on CNBC Africa, Mabouba Diagne, Vice President of Finance and Corporate Services at the ECOWAS Bank for Investment and Development (Ebid), shed light on the challenges surrounding energy access in Africa and the role that development banks can play in addressing this critical issue. Diagne highlighted the significant lack of access to power in Africa, with close to 640 million people lacking electricity and 900 million people lacking clean cooking energy facilities. This presents a major hurdle for economic growth and development on the continent. To tackle this challenge, Ebid has been actively involved in financing solar energy projects linked to food security in various African countries. One of the noteworthy projects mentioned by Diagne is a 40 million euro initiative in Ivory Coast, where Ebid provided financing for a solar pump and irrigation system supporting thousands of farmers. This project not only enhances food production but also boosts cash crop cultivation. Another project in Sierra Leone involves financing a 25-megawatt solar power initiative to improve energy access in the country, where less than 17 percent of the population currently has access to electricity. Diagne emphasized the importance of collaboration among regional development banks such as African Export-Import Bank, Badea, African Development Bank, African Finance Corporation, and Ebid. By pooling their resources and working together, these institutions can effectively fund large-scale projects aimed at bridging the energy gap in Africa. Additionally, Diagne stressed the role of the private sector in driving investment in the energy sector, especially with the rising debt levels in many African countries. Private sector participation and blended finance mechanisms can help make renewable energy more affordable and accessible across the continent. Despite challenges related to the recent global crises affecting supply chains and funding, Diagne remains optimistic about the future of renewable energy in Africa. He noted that the costs of photovoltaic panels are decreasing, technology is advancing, and there is growing interest from donors and financial institutions to support clean energy initiatives. With these factors in play, Diagne believes that renewable energy projects are becoming more financially viable and can offer attractive returns to private sector investors. Development banks like Ebid are committed to providing the necessary support and funding to drive the energy transition in Africa. Overall, the interview with Mabouba Diagne highlights the critical need for concerted efforts from development banks, the private sector, and other stakeholders to address energy access challenges in Africa. By leveraging partnerships, innovative financing models, and sustainable technologies, Africa can make significant strides towards achieving universal energy access and powering its economic growth in the years to come.