Ethiopia is seeking nearly US$11 billion from the World Bank and other development partners to help finance a national electrification plan aimed at achieving universal electricity access within 10 years.
The third National Electrification Plan (NEP 3), unveiled following 18 months of discussions, requires more than US$18 billion, according to the Ministry of Water and Energy. External partners are expected to provide approximately 61 per cent of the financing.
Mesfin Dabi, the ministry’s executive director of Energy and Electrification Information, said the plan targets electricity access for 32.5 million households over the next decade.
Approximately 4.4 million households would receive electricity through off-grid solutions, including solar power, while the remainder would be served through the national grid.
Mesfin said government resources alone would be insufficient, making development financing and private investment essential. The government aims to raise electricity access to 75 per cent within five years before achieving universal coverage.
Private investors are expected to contribute about US$800 million towards off-grid solutions. Additional financing for these systems would be sought through carbon credit sales, according to the ministry’s presentation.
Mesfin said the World Bank had previously provided more than US$1.6 billion in concessional loans to support electricity access.
Nora Kipwala, a senior energy specialist at the World Bank, said the institution would continue supporting Ethiopia’s electrification efforts alongside reforms to strengthen sector performance.
She said support extended beyond household connections to institutional capacity, tariff reforms, technical efficiency and affordability.
“The private sector shouldn’t be an observer,” Kipwala said, calling for conditions that encourage investment.
She cited the ADELE and PRIME programmes and highlighted the need to link electricity access with productivity, employment and improved livelihoods.
Ethiopia also participates in Mission 300, a joint World Bank and African Development Bank initiative targeting electricity access for 300 million people in sub-Saharan Africa by 2030.
Kipwala said the ASCENT Ethiopia programme supported the country’s access ambitions. She urged programmes that incentivise private investment, describing business participation as critical to delivering NEP 3.
The proposed external financing remains a funding target, rather than an announced commitment from development partners.
