The World Bank has emphasized that affordable and dependable electricity remains central to Africa’s economic transformation, with the potential to create millions of jobs and lift entire communities out of poverty.
In a recent report titled “Switching on Opportunity: How Electricity Can Transform Jobs in Africa,” the Bretton Woods institution explained that while access to energy has powered industrial revolutions around the world for more than a century, Africa’s progress in this area has been slow, leaving nearly 600 million people without access to electricity.
According to the report, the high cost and unreliability of electricity continue to hinder private sector expansion across the continent. Many businesses are unable to scale or adopt modern, energy-driven technologies that enhance productivity. The Bank noted that stable and affordable energy is vital for competitiveness, efficiency, and technological advancement in Africa’s key industries.
“Affordable and reliable electricity is essential for businesses seeking to operate and expand effectively across Africa,” the report stated. “High energy costs and recurring blackouts reduce productivity and often force companies to depend on manual processes rather than technology-based systems.”
The World Bank estimated that unreliable power supply has reduced employment rates in some African economies by as much as 5 to 14 percentage points. It further observed that improved energy access is one of the most powerful tools for economic transformation, particularly in sectors such as agriculture, manufacturing, mining, healthcare, tourism, and construction—areas that could experience significant productivity gains through stable power.
To accelerate progress, the Bank announced a commitment of $30 billion through its International Development Association (IDA) over the next five years to fund Mission 300, a flagship initiative designed to deliver electricity to 300 million Africans by 2030. The funding represents about 20 per cent of the institution’s total regional investment.
It added that African governments are complementing the effort through National Energy Compacts, which aim to reform power markets, expand infrastructure, strengthen utilities, and attract private sector participation.
The World Bank cited examples of ongoing success stories across the continent. In Ethiopia, more than eight million people and over 19,000 public facilities, including schools and hospitals, have been connected to the grid. In Tanzania, the Rural Electrification Expansion Programme has linked more than 16,000 rural businesses, supporting industries such as food processing, fish farming, and small-scale manufacturing.
In Senegal, the Energy Access and Scale-Up Project aims to connect 600 healthcare centres, 200 schools, 700 small and medium-sized enterprises, and 200,000 households. Similarly, in Sierra Leone, mini-grid systems tied to productive ventures such as milling, cold storage, and digital services are demonstrating that rural electrification can be both commercially viable and socially impactful.
“These projects highlight the continent’s growing momentum to transform its energy landscape through practical solutions that not only bring light to homes but also drive job creation and sustainable growth,” the World Bank said.
The institution concluded that powering Africa’s industries, healthcare facilities, and small businesses is critical to developing a stronger and more resilient workforce capable of driving long-term economic growth and prosperity.
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Africa’s Job Creation Hinges on Reliable Electricity, say WorldBank
The World Bank has emphasized that affordable and dependable electricity remains central to Africa’s economic transformation, with the potential to create millions of jobs
