• FOCUS Energy

African money for electrification

• 2 Days Ago

In February, the Board of Directors of the African Development Bank (AfDB) approved a new US$3.9 million (more than N$62 million) two-year technical assistance project to support African countries in realising their National Energy Compacts.

The compacts, under Mission 300 - the AfDB–World Bank initiative to connect 300 million Africans to electricity by 2030 - are national plans in which governments set out how they will expand electricity access, strengthen their power sectors, and attract investment.

Namibia is among 13 Mission 300 countries set to benefit over 24 months from the new project, known as AESTAP (Africa Energy Sector Technical Assistance Programme for Compact Implementation) Mission 300 Phase II. Along with Chad, Gabon, Tanzania, Mauritania, the Democratic Republic of the Congo (DRC), Kenya, Nigeria, Madagascar, Ethiopia, Malawi, Lesotho and Uganda, Namibia will receive direct technical support to move from documented energy plans to actual electricity connections for homes, schools, hospitals, and businesses.

Over the past year, dozens of African countries have launched these compacts, backed by strong political commitments and pledges from development partners. Namibia launched its compact in December 2025 and, according to a World Bank document titled Namibia National Energy Compact Mission 300, aims to mobilise close to N$30 billion in funding for electricity infrastructure projects to meet its target of electrifying 200 000 households by 2030.

In addition to expanding access, the strategy aims to reduce reliance on electricity imports - currently estimated at 60% - by increasing domestic generation and targeting 80% energy self-sufficiency.

“Meeting the targets of the compact is estimated to cost US$1.76 billion (N$29.1 billion), with US$411 million (N$6.8 billion) expected to be mobilised through public sector sources. The remaining funding requirement at this stage is estimated at US$1.05 billion (N$17.4 billion), to be mobilised from the private sector through investment commitments,” according to the strategy document.

Projects in the pipeline

Several projects have been identified to support Namibia’s electrification and generation goals. These include the Baynes project, which could add up to 440 MW to the national grid and for which a feasibility study has been completed; the 40 MW Otjikoto biomass project, currently under construction; the 100 MW Rosh Pinah solar photovoltaic (PV) project; the 20 MW Khan PV project, also under construction; and the 50 MW Cerim wind project, which is under construction. The 600 MW Baynes Hydropower Project, currently estimated to cost N$26.5 billion, will need to be funded separately for joint implementation by the governments of Namibia and Angola.

AESTAP Mission 300 Phase II is intended to help governments improve electricity regulations, planning, and tariffs so that investments can move forward. It will strengthen utilities to deliver more reliable power and reduce losses, support improved data, research, and knowledge-sharing across countries through tools such as the Electricity Regulatory Index and regional energy forums, and place expert advisers within national Compact Delivery and Monitoring Units to help governments coordinate reforms and track progress, according to the AfDB.

Wale Shonibare, Director of Energy Financial Solutions, Policy and Regulation at the AfDB, said: “Countries have made bold commitments through their energy compacts. Now, through AESTAP Mission 300 Phase II, we are helping them implement those commitments so that more households, entrepreneurs, and communities gain access to electricity.”

The new project follows the approval of AESTAP Mission 300 Phase I in December 2025, which provided about US$1 million to help countries establish and operate their Compact Delivery and Monitoring Units (CDMUs). These units are housed within governments and are responsible for coordinating energy reforms across ministries and tracking progress.

Phase I focused on establishing and strengthening these delivery teams by training staff, setting up monitoring tools, and helping countries plan their next steps. Phase II will build on this by providing the technical support needed to implement planned reforms. The project will be implemented in coordination with other Mission 300 partners, including the World Bank, governments, and development organisations, to ensure a coordinated effort.