African Development Bank (AfDB) has pledged to support energy projects in Africa with princely $55 billion by 2025.
President of the bank, Akinwumi Adesina, stated that AfDB would mobilise the funds to fill energy gaps in the continent and support development of energy infrastructure in order to enhance social and economic development of the continent.
While pledging strong support for African countries driving energy capacity development, Mr. Adesina challenged them to increase their budget for the energy sector in order to attract the right counterpart funding from development agancies.
“A lot of financing is needed,” Adesina said in Abidjan, the commercial capital of Ivory Coast, where the bank is based.
“We must close the $55 billion financing gap for energy in sub- Saharan Africa,” he added.
Adesina served as Nigeria’s minister of agriculture and rural development before he was chosen to lead the development bank.
The deal is the first initiative he has announced in his new role. The bank spent $2 billion on energy projects in 2014, with $650 million in power generation. Over 80 per cent of the generation projects were renewable energy.
About 620 million people in sub- Saharan Africa do not have access to electricity, according to data from the International Energy Agency.