The World Bank says affordable and reliable electricity could unlock Africa’s job potential, drive economic transformation, and lift millions out of poverty.
In a new blog post titled “Switching on Opportunity: How Electricity Can Transform Jobs in Africa,” the Bank noted that although energy innovations have transformed work worldwide over the past 150 years, Africa’s progress has lagged, with nearly 600 million people still without access to power.
“Affordable and reliable electricity is key for firms seeking to scale operations more efficiently in the region,” the bank stated.
“High electricity costs undermine the competitiveness of private sector firms, often forcing them to rely on manual processes instead of adopting high-productivity technologies that require more energy.” It stated.
The World Bank warned that unreliable electricity remains a major obstacle to Africa’s growth, with frequent blackouts disrupting businesses and reducing employment by an estimated 5 to 14 percentage points.
It stressed that energy access is now one of the most crucial drivers of economic transformation and job creation across the continent, noting that industries such as agribusiness, light manufacturing, mining, construction, healthcare, and tourism could achieve significant productivity gains with more consistent and reliable power.
To speed up progress, the World Bank announced plans to deploy $30 billion from its International Development Association over the next five years to fund Mission 300, an initiative designed to deliver electricity to 300 million Africans by 2030. The allocation represents about 20 percent of the Bank’s total regional support.
“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,” it added.
The national energy plans aim to expand infrastructure at competitive costs, integrate regional power markets, attract private investment, and strengthen utility performance.
The World Bank highlighted several examples across Africa where electricity expansion is driving job creation and productivity. In Ethiopia, one project has connected more than eight million people and over 19,000 schools, clinics, and government facilities. In Tanzania, the Rural Electrification Expansion Program has linked more than 16,000 rural businesses to the grid, boosting sectors such as food processing, fish farming, and construction.
Similarly, Senegal’s Energy Access and Scale-Up Project seeks to provide electricity to 600 health clinics, 200 schools, 700 small and medium-sized enterprises, and 200,000 households, generating jobs in installation, maintenance, and supply chains.
In Sierra Leone, the World Bank noted that demand-driven mini-grids are demonstrating that rural electrification can be commercially viable when linked to productive activities like 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 World Bank emphasized that electrifying Africa’s industries, health facilities, and small businesses is vital for developing a stronger, more resilient, and skilled workforce capable of sustaining long-term economic growth.
