AfDB approves $3.9m for Africa power reforms

The Board of Directors of the African Development Bank (AfDB) has approved a US$3.9 million, two-year technical assistance project aimed at accelerating electricity access across Africa by supporting countries to implement concrete energy sector reforms.

The project, known as AESTAP Mission 300 Phase II, will provide direct technical support to 13 African countries over the next 24 months as part of Mission 300, a joint AfDB–World Bank initiative targeting the connection of 300 million Africans to electricity by 2030.

According to the AfDB, the initiative is designed to help countries move beyond policy commitments to real delivery by supporting the implementation of their National Energy Compacts, which outline how governments plan to expand electricity access, strengthen power sectors, and attract private investment.

Over the past year, dozens of African countries have launched Energy Compacts backed by strong political commitments and pledges from development partners. However, the Bank said translating these plans into actual electricity connections remains the critical next step.

In a press release issued on Saturday, January 31, the AfDB said AESTAP Mission 300 Phase II would, in practical terms, help governments improve electricity regulations, planning frameworks, and tariff structures to make the sector more attractive to investors.

The project will also focus on strengthening electricity utilities to enable them to deliver more reliable power, reduce system losses, and improve overall performance. In addition, it will support better data, research, and cross-country learning through tools such as the Electricity Regulatory Index and regional energy forums.

As part of the intervention, expert advisers will be embedded within national Compact Delivery and Monitoring Units to help governments coordinate reforms across ministries and track progress more effectively.

The beneficiary countries are Chad, Gabon, Tanzania, Mauritania, the Democratic Republic of Congo, Kenya, Nigeria, Madagascar, Ethiopia, Malawi, Lesotho, Namibia, and Uganda. The AfDB said the support is expected to help these countries translate documented energy plans into electricity connections for homes, schools, hospitals, and businesses.

“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 actually get electricity,” the release quoted .

The approval of Phase II follows the Bank’s endorsement of AESTAP Mission 300 Phase I in December 2025, which provided about US$1 million to help countries establish and operationalise their Compact Delivery and Monitoring Units.

Phase I focused on building the capacity of these units by training staff, setting up monitoring tools, and supporting governments to plan subsequent reforms. The AfDB said Phase II would build on this foundation by providing the technical assistance required to implement the planned reforms.

“The Phase II will build on this by providing the technical support needed to implement planned reforms,” the release said, adding that 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.