African Development Bank grants US$28.49mn to help Ghana reach universal electrification

The African Development Bank has granted Ghana a total of US$28.49 million in financing from the Climate Investment Funds (CIF) – Scaling Up Renewable Energy Program that will support the construction of renewable energy infrastructure, amongst other improvements. The funding is expected to increase Ghana's renewable energy use by 10% through 2030. The project aims to contribute to closing the gender gap at the outcome level by creating over 2,800 job and livelihood opportunities, with 30% available to women and youth.

The project involves designing, engineering, supplying, constructing, installing, testing, and commissioning renewable energy systems on the island communities in the Volta Lake region. The financing will support the construction of mini-grids, stand-alone solar photovoltaic systems, and solar-based battery facilities for storing excess power, running off the net metering system.

In total, the project is expected to cost US$85.18 million, with the African Development Fund, the Bank’s concessionary window, contributing US$27.39 million, Switzerland’s State Secretariat for Economic Affairs providing US$13.30 million, and the Ghanaian government contributing US$16 million.

The African Development Bank aims to reduce greenhouse gas emissions and make energy more accessible and reliable in Africa through its New Deal on Energy for Africa. The Bank sees lighting up and powering Africa as essential for enhancing the continent's socio-economic development, and projects such as this one represent an important step towards achieving that goal.