The World Bank has warned that unreliable power supply continues to be a major barrier to economic growth in Africa, with frequent blackouts causing business disruptions that reduce employment rates by an estimated 5 to 14 percentage points.
According to the institution, energy access has become one of the most critical levers for economic transformation and job creation across the continent. The bank noted that sectors such as agribusiness, light manufacturing, mining, construction, health care, and tourism could see significant productivity gains through more intensive and reliable power use.
To accelerate progress, the World Bank announced it is leveraging $30 billion in resources from its International Development Association (IDA) over the next five years to support Mission 300, an initiative aimed at providing electricity to 300 million Africans by 2030. This funding represents about 20 percent of its total support to the region.
“This level of commitment is matched by governments themselves, who are driving reforms, setting bold targets, and creating the conditions needed to transform their energy sectors through National Energy Compacts,” the financier said.
These national energy plans are designed to expand infrastructure at competitive costs, integrate regional power markets, attract private investment, and strengthen utilities.
Across the continent, several examples highlight how electricity expansion is already creating jobs and boosting productivity. In Ethiopia, one project has connected over eight million people and more than 19,000 schools, clinics, and government facilities. In Tanzania, the Rural Electrification Expansion Program has linked over 16,000 rural businesses to the grid, supporting food processing, fish farming, and construction.
Similarly, Senegal’s Energy Access and Scale-Up Project aims to electrify 600 health clinics, 200 schools, 700 small and medium-sized enterprises, and 200,000 households — creating jobs in installation, maintenance, and supply chains.
In Sierra Leone, demand-driven mini-grids are demonstrating that rural electrification can be commercially viable when tied directly to productive activities such as milling, cold storage, and digital services.
“These engagements reflect broader efforts across the region to transform the energy landscape with practical solutions that do more than just turn on the lights; they also create jobs at scale,” the World Bank stated.
The bank emphasized that powering Africa’s industries, health centers, and small businesses is essential for building a stronger, more resilient, and better-skilled workforce capable of driving long-term growth.
