The World Bank says affordable, reliable electricity could transform Africa’s economies, create jobs, and lift millions out of poverty

World Bank electricity Africa has emerged as a central focus in the global lender’s call for inclusive economic growth, with the institution asserting that access to affordable and reliable power could unlock job creation, transform economies, and lift millions out of poverty across the continent.

Also read: World Bank Urges Nigeria to Tighten Reforms

In a new blog post titled “Switching on Opportunity: How Electricity Can Transform Jobs in Africa,” the World Bank highlighted that despite global advances in energy over the past 150 years, Africa still lags behind, with nearly 600 million people lacking access to electricity.

“Affordable and reliable electricity is key for firms seeking to scale operations efficiently in the region,” the World Bank electricity Africa report stated.

“High electricity costs undermine competitiveness, often forcing businesses to rely on manual labour instead of adopting high-productivity technologies.”

The bank warned that unreliable power remains a severe barrier to growth, estimating that blackouts alone reduce employment by between five and fourteen percentage points.

According to the institution, expanding energy access is one of the most critical levers for job creation and industrial transformation.

It identified sectors such as agribusiness, manufacturing, mining, construction, health care, and tourism as areas that could benefit significantly from increased and dependable electricity supply.

To accelerate progress, the World Bank said it is committing $30 billion through its International Development Association over the next five years to support Mission 300 an initiative designed to provide electricity to 300 million Africans by 2030.

The funding represents roughly 20 per cent of its total support to the region.

The bank noted that African governments are also showing commitment through National Energy Compacts reform plans that aim to expand infrastructure, integrate regional power markets, attract private investment, and strengthen utilities.

Real-world examples already demonstrate progress. In Ethiopia, more than eight million people and 19,000 public facilities have been connected to power. In Tanzania, over 16,000 rural businesses now have grid access, boosting food processing and fish farming.

Senegal’s scale-up project targets electrification for hundreds of schools, clinics, and small enterprises, while Sierra Leone’s mini-grid initiative shows that rural electrification can be commercially viable when tied to productive ventures like milling and cold storage.

“These efforts go beyond simply turning on the lights they create jobs, strengthen communities, and build a more resilient economic foundation,” the World Bank electricity Africa report said.

Also read: World Bank says Nigeria single-digit inflation target unrealistic

Ultimately, the institution maintained that powering Africa’s industries, schools, and small businesses is vital for building a skilled workforce and achieving sustainable growth across the continent.