African Development Fund approves $23 million to boost clean energy access in Bosaso, Somalia
African Development Fund approves $23 million to boost clean energy access in Bosaso, Somalia
The Board of Directors of the African Development Fund has approved a grants package worth $23.36 million to bring clean and reliable electricity to the city of Bosaso, Somalia.
The Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions project, funded through the African Development Fund ($9.62 million) and the Transition Support Facility ($13.74 million), will introduce new solar generation, expand the distribution network and install modern meters to help households manage energy use more efficiently. It will also bring solar home systems to families that have never before had access to electricity, including internally displaced people living in vulnerable conditions.
Somalia has one of the lowest electricity access rates in the world. About half of the population lives without power. Those who are connected pay extremely high prices as most electricity is produced with diesel generators, which are both expensive to run and highly polluting. Inadequate and unreliable electricity make daily life difficult and limit the growth of local businesses. Government agencies also struggle to manage the sector due to limited technical and financial capacity.
Bubacarr Sankareh, the Bank Groupโs Lead Operations Advisor for Somalia, welcomed the approval, saying: โThis project will change lives in Bosaso for families and small businesses. It will make electricity cheaper, cleaner and more reliable and is a major step toward a stronger and more resilient energy future for Somalia.โ
These efforts are expected to reduce the cost of electricity for local residents and help businesses operate more reliably. Markets, small shops and service providers will benefit from steady and more affordable power. Families will experience better access to lighting, refrigeration and essential household services. Cleaner energy will also reduce pollution and improve living conditions in crowded neighbourhoods.
The project will also create new jobs during construction and long-term work opportunities in system operations and maintenance. It will also support public institutions through technical training and capacity building so that Somalia can better plan and regulate its energy sector.
The positive environmental impact will be significant. Replacing diesel generators with solar power and battery storage will cut carbon emissions and support Somaliaโs long-term climate goals.