Electricity Access Key to Unlocking Africa’s Job Growth, Says World Bank

The World Bank has emphasized that affordable and reliable electricity is essential for unlocking Africa’s economic potential and creating millions of jobs.

In a recent publication titled Switching on Opportunity: How Electricity Can Transform Jobs in Africa, the bank highlighted that despite global energy advancements, nearly 600 million Africans still lack access to power. The report noted that electricity is fundamental for firms aiming to scale efficiently. High energy costs and unreliable supply hinder productivity, forcing businesses to rely on manual labor instead of adopting energy-intensive technologies.

The bank warned that blackouts reduce employment rates by up to 14 percentage points. It stated that sectors such as agribusiness, manufacturing, mining, healthcare, and tourism could see major gains with improved energy access.

To address this, the World Bank is channeling $30 billion through its International Development Association over five years to support Mission 300, an initiative to provide electricity to 300 million Africans by 2030.

Governments across the continent are also stepping up, implementing National Energy Compacts to expand infrastructure, attract investment, and integrate regional power markets.

The report cited examples of progress. In Ethiopia, more than 8 million people and 19,000 institutions have been connected to the grid. In Tanzania, 16,000 rural businesses have gained access to electricity. Senegal is working to electrify 600 clinics, 200 schools, and 200,000 households. In Sierra Leone, mini-grids are supporting productive activities such as milling and cold storage.

The bank concluded that powering Africa’s industries and small businesses is vital to building a resilient, skilled workforce capable of driving long-term growth.