Efforts to increase electricity access in Africa have received a major boost following the launch of the Japan-Africa Energy Initiative (JAEI).

Through the JAEI, the Japanese government intends to provide up to $6-billion in both concessional and nonconcessional loans to support the New Deal on Energy for Africa.

The New Deal on Energy for Africa is an African Development Bank- (AfDB-) led initiative aimed at ensuring the continent achieves universal electricity access by 2025, with a strong focus on encouraging clean and renewable-energy solutions.

The AfDB contends that the initiative will require investments ranging from $6-billion to $90-billion a year to provide 160 000 MW of new capacity, 130-million new on-grid connections and 75-million new off-grid connections. The bank has committed $12-billion of its own resources over the next five years.

The Japanese government, through the JAEI, intends to finance activities associated with energy projects, ranging from preparation to construction, operation and technical assistance.

The support is expected to significantly bolster Africa’s ability to develop its baseload power to drive industrial development.

“Japan has answered our call to make it easier for African governments to adopt a balanced energy mix of all available energy sources and technologies, including the best low-emitting clean coal technologies, where they form part of a least-cost sector development plan,” says AfDB president Akinwumi Adesina.

He adds that ensuring universal access to electricity should be the overriding priority for Africa, considering that the continent has the lowest electrification rate in the world, estimated at 613 kWh a year, compared with 6 500 kWh in Europe and 13 000 kWh in the US.

Besides, Africa loses up to 4% of its yearly gross domestic product as a result of energy bottlenecks and inefficiencies, while 645- million people have no access to electricity.

“Much of rural and sub-urban Africa remains in the dark and it is almost impossible to start a business, teach or provide healthcare without power and light. Africa cannot develop in the dark,” says Adesina.

The AfDB is encouraging governments to increase their budgets for the energy sector tenfold and to enhance their political support for transformative energy projects.

In 2016, the bank approved $1.7 billion for power projects ranging from policy-based operations to power generation, public- sector transmission and distribution.

It also launched a $500-million energy inclusion facility to ramp up off-grid investments. This year, the bank plans to invest $2-billion in the energy sector.