Across Africa, governments have spent the past several years drafting national “Energy Compacts,” which outline strategies to expand electricity access, strengthen power utilities and attract private investment. These plans reflect a growing recognition that access to reliable electricity is essential for economic growth, improved health care, education and industrial development. But while many countries have made political commitments and secured international backing, progress has often been slowed by regulatory barriers, weak utility systems and limited technical capacity.

The new program is intended to bridge that gap. It will support countries including Kenya, Nigeria, Ethiopia, Tanzania, Uganda, Namibia and the Democratic Republic of Congo, among others, helping them move beyond planning and toward delivering electricity to homes, schools, hospitals and businesses. By embedding technical advisers within government agencies and supporting regulatory and institutional reforms, the initiative aims to accelerate the implementation of energy sector improvements.

Among its key objectives, the program will assist governments in improving electricity regulations, planning frameworks and tariff structures, changes that are essential to attracting investment and ensuring the financial sustainability of power utilities. It will also help utilities strengthen their operational performance, reduce energy losses and improve service reliability. In addition, the program will promote better data collection, research and coordination across countries, enabling policymakers to make more informed decisions and track progress more effectively.

The new phase builds on earlier efforts launched in late 2025, when the African Development Bank approved an initial round of funding to help countries establish dedicated energy reform teams known as Compact Delivery and Monitoring Units. These units, embedded within national governments, are responsible for coordinating reforms, aligning policy across ministries and monitoring progress toward electrification goals. The latest funding will focus on strengthening these teams and providing the technical expertise needed to implement reforms.

The initiative reflects the scale of Africa’s electricity challenge. Despite significant progress in recent years, hundreds of millions of people across the continent still lack reliable access to power, particularly in rural areas. Without electricity, businesses struggle to grow, students lack adequate study conditions and hospitals face disruptions that can jeopardize patient care.

By helping governments strengthen institutions, improve regulation and implement investment-ready reforms, the African Development Bank hopes to accelerate electrification and unlock broader economic development. Officials say the program will also help attract additional private and public investment, ensuring that Africa’s energy plans evolve from policy promises into functioning infrastructure that supports long-term growth.

If successful, the initiative could mark a turning point in Africa’s energy transition, transforming ambitious electrification goals into reliable power for millions of households and businesses, and helping lay the foundation for more inclusive economic growth across the continent.