WB President commends Tanzania's energy progress, calls for stronger partnerships across Africa

Dar es Salaam. The President of the World Bank, Ajay Banga, has lauded Tanzania for its significant strides in extending electricity access to a large portion of its population in a relatively short span of time.

Speaking during a high-level Africa Energy Summit in Dar es Salaam on Monday, 27 January 2025, Mr Banga highlighted the importance of collective efforts to meet Africa’s energy targets, calling for more robust partnerships, including with the private sector.

Speaking at the event, Mr Banga stressed the importance of collective efforts to meet Africa’s ambitious energy targets, calling for stronger partnerships, particularly with the private sector.

He reiterated the World Bank’s commitment to supporting energy projects across the continent, urging stakeholders to come together to make these goals a reality.

“The aim of this summit is to build on the work initiated several months ago, where 12 countries reached energy agreements. Our shared goal is to develop strategies that will bring electricity access to 300 million people,” Mr Banga said.

He noted that starting with a manageable number of countries would ensure the goal is achievable, but stressed that coordinated efforts and substantial resources would be required to achieve the target.

“Overcoming the energy challenges Africa faces requires aligning policies, securing funding, and creating actionable frameworks,” he added, emphasising the need for collaboration among governments, the private sector, and international organisations.

Mr Banga further underscored the importance of creating predictable environments for investment. He said resolving issues like land acquisition and financing would be crucial in ensuring the long-term success of energy projects.

“Our priority is to make energy investments viable by addressing key challenges, which we refer to as ‘agreements’—foundations for sustainable energy solutions,” he explained.

In a nod to regional cooperation, Mr Banga pointed to Tanzania’s collaboration with four neighbouring countries on energy initiatives. Discussions are already underway with a fifth partner.

Earlier, speaking during the opening of the summit, Tanzania’s Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, said at independence the country had only 21 megawatts of electricity, but this has since risen to over 3,160 megawatts.

Tanzania, said Dr Biteko, has also strengthened regional energy ties, connecting its power grid with neighbouring countries, including Kenya, Rwanda, Burundi, and Uganda.

In response to that, Mr Banga said, “This is exactly the kind of regional cooperation we aim to replicate across the continent.”

The World Bank President also called on the private sector to play a pivotal role in Africa's energy transition, stressing that the sector's involvement is essential for the success of large-scale projects.

“The question is whether the private sector can trust and invest in this mission. The World Bank is committed to funding these projects, but their success depends on the creation of a stable and predictable environment for private investment,” he noted.

Speaking on the role of small and medium enterprises (SMEs), Mr Banga emphasised their importance in job creation across Africa. He said the World Bank, in partnership with governments and humanitarian organisations, was offering low-interest loans and grants to foster the growth of SMEs in energy and other sectors.

“Africa’s growing youth population presents both a challenge and an opportunity. Our goal isn’t just to alleviate poverty, but to provide jobs and uphold the dignity of young people,” he said.

Mr Banga further explained that energy access is fundamental to economic growth, enabling critical sectors like education, healthcare, and digital transformation.

“We cannot make meaningful progress in these areas without reliable energy,” he added.

Dr Amina Suleiman, an energy policy expert from Ghana, praised Mr Banga’s focus on youth employment and the need for greater private sector engagement. She also stressed that Africa's energy crisis is not solely an infrastructure issue but one that directly affects its people.

“If young people are left without opportunities, unemployment and social instability will worsen. Governments cannot achieve these goals alone. Private sector involvement is crucial,” Dr Suleiman said.

She also highlighted the need for strong governance and regulatory reforms to attract investment and ensure policy stability. “Good governance and transparent, consistent policies are vital to making this vision a reality,” she added.

Mr Banga concluded the summit by outlining a comprehensive approach to tackling Africa’s energy challenges. This includes aligning regional and global markets, fostering strategic partnerships, and mobilising financial resources. He noted that 30 per cent of funding from the International Development Association (IDA) is provided as grants, while the remaining funds are available through low-interest loans to ensure sustainable investments.

The World Bank President also revealed that the International Monetary Fund (IMF) is collaborating with African governments to enhance their ability to provide effective energy services.

“The goal is to ensure policy predictability, sound infrastructure planning, and targeted funding,” he said.

As the summit concluded, stakeholders expressed optimism about achieving Africa’s energy goals but acknowledged the need for urgent action, given the continent’s rapidly growing population and its pressing energy and employment needs.

“This is a defining moment for Africa,” Dr Suleiman remarked. “We must act decisively to secure our energy future and ensure that our young people inherit a continent full of opportunity.”