The World Bank has emphasized that expanding access to affordable and stable electricity is essential for job creation and economic growth across Africa.
In its new report titled “Switching on Opportunity: How Electricity Can Transform Jobs in Africa,” the bank noted that while energy development has powered industrial and social progress globally for over a century, Africa still faces major challenges, with around 600 million people lacking electricity.
The bank explained that unreliable and expensive electricity limits business competitiveness and discourages the use of modern, energy-dependent technologies that could boost productivity. It added that frequent power cuts have caused operational losses for many firms, reducing employment levels by up to 14 percentage points in some cases.
According to the report, improving power access could unlock opportunities in sectors such as agriculture, light manufacturing, mining, tourism, health care, and construction, helping to transform economies and reduce poverty.
To support this goal, the World Bank announced plans to invest $30 billion through its International Development Association (IDA) over the next five years under Mission 300, an initiative targeting electricity access for 300 million Africans by 2030. The amount represents about 20% of the bank’s total commitment to the continent.
The World Bank praised African governments for setting ambitious targets and reforming their energy policies through National Energy Compacts, which are designed to attract investment, strengthen utilities, and expand regional power networks.
The report highlighted ongoing progress in several countries. In Ethiopia, a national electrification program has connected more than eight million people and thousands of schools, hospitals, and government offices. Tanzania’s Rural Electrification Expansion Program has brought electricity to over 16,000 small businesses, boosting activities like food processing and aquaculture.
Similarly, Senegal’s Energy Access and Scale-Up Project aims to power hundreds of schools, health centres, and small enterprises, while Sierra Leone’s mini-grid projects are showing that rural electrification can be profitable when linked to local industries such as milling and cold storage.
The bank said these examples show how energy access can do more than light homes — it can create jobs, strengthen industries, and build more resilient economies.
It concluded that powering Africa’s communities and industries is crucial for developing a skilled workforce capable of driving sustained growth across the continent.
