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The World Bank has said that access to affordable and reliable electricity is vital to unlocking Africa’s potential for job creation, industrial growth, and poverty reduction.
In a new blog post titled “Switching on Opportunity: How Electricity Can Transform Jobs in Africa,” the global financial institution stated that despite major advances in global energy use over the past century and a half, Africa continues to lag behind, with about 600 million people still living without access to electricity.
According to the World Bank, affordable and consistent electricity supply remains the foundation for expanding industries, boosting small businesses, and creating sustainable jobs across the continent. It explained that firms in Africa often face high operational costs due to unreliable power supply, which discourages the use of modern equipment and technologies needed for productivity and competitiveness.
“Affordable and reliable electricity is key for firms seeking to scale operations more efficiently in the region. High electricity costs undermine the competitiveness of private sector firms, often forcing them to rely on manual processes instead of adopting high-productivity technologies that require more energy,” the Bank noted.
The World Bank warned that frequent blackouts continue to affect growth, stating that unreliable power reduces employment rates by an estimated 5 to 14 percentage points. The institution described energy access as one of the most powerful tools for transforming economies and generating employment opportunities across various sectors including agribusiness, manufacturing, mining, healthcare, and tourism.
To address this challenge, the World Bank said it is committing $30 billion from its International Development Association over the next five years to support Mission 300, an ambitious initiative that aims to provide electricity access to 300 million Africans by 2030. This funding represents about 20 per cent of the Bank’s total support to Sub-Saharan Africa.
According to the Bank, African governments are also playing a crucial role through the implementation of National Energy Compacts — comprehensive reform strategies designed to expand electricity infrastructure, attract private investments, and strengthen national utilities. These compacts are helping countries integrate regional power markets, improve cost efficiency, and promote renewable energy solutions.
Citing examples, the World Bank said several countries are already seeing positive results. In Ethiopia, one of its projects has connected more than eight million people and over 19,000 public facilities, including schools, clinics, and government offices. Similarly, Tanzania’s Rural Electrification Expansion Program has linked over 16,000 rural businesses to the national grid, supporting local enterprises in food processing, fish farming, and construction.
In Senegal, the Energy Access and Scale-Up Project is targeting the electrification of 600 health clinics, 200 schools, 700 small and medium-sized enterprises, and 200,000 households. The Bank noted that this project alone is already generating employment through installation, equipment supply, and maintenance services.
In Sierra Leone, mini-grid systems are being used to demonstrate that rural electrification can be commercially viable when linked directly to productive ventures such as rice milling, cold storage, and digital service centres.
“These engagements reflect broader efforts across the region to transform the energy landscape with practical solutions that do more than just turn on the lights; they also create jobs at scale,” the World Bank said.
The institution further stressed that powering Africa’s industries, healthcare facilities, and small businesses is essential to building a resilient and skilled workforce capable of driving sustainable growth and economic diversification.
It added that with the right policies, investments, and partnerships, Africa could replicate the energy-driven industrial revolutions seen in other regions and unlock millions of employment opportunities for its growing youth population.
