The World Bank has allocated nearly USD 300 million to the Eastern and Southern African Trade and Development Bank (TDB) to support distributed renewable energy (DRE) and clean cooking projects in eligible countries under the World Bank’s International Development Association (IDA). This initiative builds on TDB’s successful financing of off-grid solar projects through a previous USD 415 million facility in 2020.
Under the extended facility, the ASCENT Regional Energy Access Financing Platform (REAF) will be established and implemented. This platform aims to facilitate electricity access for up to 5 million people, clean cooking access for up to 1 million people, and add up to 35MW of energy capacity to the region.
Loans under this facility will support DRE and clean cooking companies, with smaller loans available to SMEs through TDB Group’s Trade and Development Fund (TDF). Additionally, performance-based grants will be provided to support companies entering new markets and piloting innovations. Technical assistance and capacity building will also be offered to enhance sustainability and address aspects such as climate resilience and gender equality.
Improving access to energy is crucial for reducing poverty and promoting sustainable growth in Africa. It enables education, inclusion, job creation, and industrial development. Access to clean energy is particularly important for improving health outcomes, especially for women, by reducing indoor air pollution.
Admassu Tadesse, TDB Group President and Managing Director, emphasized the need for increased financing to meet Africa’s growing energy demand while transitioning to sustainable and clean energy sources. Boutheina Guermazi, World Bank Director for Regional Integration in Africa and the Middle East, highlighted the importance of collaboration in providing sustainable and affordable energy access in Africa.
Boutheina Guermazi, the World Bank’s Director for Regional Integration in Africa and the Middle East, reiterated the significance of sustainable, reliable, and affordable energy access for Africa’s development and poverty reduction efforts. She expressed the World Bank’s satisfaction in strengthening its partnership with TDB Group and looked forward to collaborating to unlock additional sources of financing for various private sector actors through the new ASCENT Regional Energy Access Financing Platform (REAF).
Guermazi emphasized the importance of collective efforts in addressing the energy access challenges facing Africa and the potential of collaborative initiatives like ASCENT to make a meaningful impact on the continent’s development trajectory.
