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Nairobi Business Monthly
Home»Briefing»AfDB launches $3.9B initiative to electrify millions across Africa
Briefing

AfDB launches $3.9B initiative to electrify millions across Africa

Antony MutungaBy Antony Mutunga2nd February 2026No Comments2 Mins Read
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The African Development Bank (AfDB) has approved a major new initiative to connect millions of people in Africa who currently lack electricity.

The project, called the Africa Energy Technical Assistance Program (AESTAP) Mission 300 Phase II, will help several African countries turn their National Energy Compacts into actual electricity connections.

Over the next two years, Chad, Gabon, Tanzania, Mauritania, the Democratic Republic of Congo, Kenya, Nigeria, Madagascar, Ethiopia, Malawi, Lesotho, Namibia, and Uganda will receive technical assistance through the Sh507.53 billion ($3.9 billion) project.

The Nairobi Law Monthly September Edition

Energy compacts are national plans where governments outline strategies to expand access, strengthen power sectors, and attract investment. With political support and backing from development partners in place, the challenge now is implementation.

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Wale Shonibare, Director of Energy Financial Solutions, Policy and Regulation at AfDB, said: “These compacts are commitments by African countries. Through AESTAP Mission 300 Phase II, we are helping them implement those commitments so that households, entrepreneurs, and communities actually get electricity.”

The initiative will provide hands-on support to help power homes, schools, hospitals, and businesses. It will assist governments in refining electricity regulation, planning, and tariffs to unlock investment.

It will also strengthen national utilities, reduce technical and financial losses, and promote knowledge sharing across Africa through tools like the electricity regulatory index and regional forums. Expert advisers will be embedded in government units to coordinate reforms and track progress.

Phase II builds on Phase I, which in December 2025 provided Sh130.14 million ($1 million) to establish and operationalize monitoring units, train staff, and set up accountability systems. Phase II now adds the technical expertise needed to implement the plans these units oversee.

The project aligns AfDB’s work with the World Bank, national governments, and other partners to tackle the “final mile” of electrification, which requires finance, technical guidance, and ongoing institutional support.

The Nairobi Law Monthly September Edition
AfDB Africa electrification
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Antony Mutunga

Antony Mutunga holds a Bachelors degree in Commerce, Finance from Jomo Kenyatta University of Agriculture and Technology. He previously worked for Altic Investment & Consultancy before he joined NBM team in 2015. His interest in writing ranges from business, economics and technology. He is also our lead researcher in matters business.

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The Nairobi Law Monthly September Edition
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