The African Development Bank (AfDB) has indicated that it has identified a funding shortfall as a significant obstacle to enhancing African nations’ dedicated efforts to diminish the energy deficit.
The institution is apprehensive that securing financing has proven to be a challenging endeavor, even amidst the pressing necessity to tackle energy accessibility issues, especially in Sub-Saharan Africa, where 600 million individuals continue to lack electricity.
Consequently, it reaffirmed its dedication to augmenting investments in Africa’s energy domain and amplifying climate financing through its newly introduced “Mission 300 initiative” prior to COP30.
AfDB Vice-President, Nnenna Nwabufo, conveyed this information in a statement posted on the bank’s website during the 2025 Finance in Common Summit.
She emphasized the crucial function of Local Finance Institutions (LFIs) in closing the energy financing gap and advancing sustainable solutions.
“LFIs are the lifeblood of our economies, equipped with a distinctive comprehension of local contexts, requirements, and opportunities.
“They are vital for mobilizing the requisite capital, nurturing local entrepreneurship, and scaling sustainable energy projects,” she stated.
Nwabufo pointed out that Mission 300, supported by the World Bank, AfDB, and other development partners, aims to provide electricity accessibility to 300 million Africans by 2030.
“The initiative builds upon commitments made during the Mission 300 Energy Summit in January, where 48 African Heads of State vowed to expedite policy reforms and 12 nations delineated National Energy Compacts,” she remarked.
Despite notable advancements, she indicated that financing continues to pose a significant challenge, particularly concerning last-mile connectivity and off-grid solutions.
Nwabufo articulated that specialists at the summit highlighted the necessity for innovative financing models, concessional funding, blended finance, and risk-mitigation strategies to entice private investment.
“Conventional financing models frequently fall short in addressing the specific requirements of local communities and small-scale energy projects; this is where LFIs, with their local expertise, can effectuate a transformative difference,” she added.
With the Mission 300 initiative gaining traction, stakeholders remain hopeful that collaborative efforts and robust partnerships will propel Africa toward universal energy accessibility by 2030.
