COMESA (Common Market for Eastern and Southern Africa) and the World Bank have signed a $25 million financing agreement to accelerate the deployment of renewable energy projects in East Africa. The fund primarily targets solar and wind projects in countries whose electricity grids remain inadequate despite strongly growing demand.
A signal for Africa's most dynamic region
East Africa already boasts one of the continent's best energy transition trajectories. Kenya generates more than 90% of its electricity from renewable sources — geothermal, hydro, wind — and serves as a regional benchmark. Ethiopia, with the Grand Renaissance Dam (6,450 MW), aims to become a net electricity exporter to neighbouring countries.
The COMESA-World Bank fund will complement these structural investments by financing mid-sized projects — typically 5 to 50 MW — that struggle to attract private market financing due to insufficient guarantees. Priority countries include Tanzania, Rwanda, Uganda and Mozambique.
Renewables as an economic competitiveness lever
Beyond the climate dimension, access to clean, affordable energy is a factor of industrial competitiveness. East African manufacturers — in textiles, agri-food and pharmaceuticals — struggle to compete with Southeast Asia on production costs, particularly energy. A reliable, renewable electricity grid could transform prospects for millions of formal jobs.
The Indian Ocean Commission (IOC) has expressed interest in ensuring that Seychelles, Mauritius and Comoros benefit from similar mechanisms under the Small Island Developing States Water and Energy Initiative.
Why it matters
This financing fits within the EAIF 2026 (East Africa Investment Forum) dynamic, which aims to mobilise €23 billion for African infrastructure. For the Indian Ocean region, staying connected to these capital flows — by participating in East African investment corridors — is a condition for long-term regional competitiveness.
Sources: Africa News Agency; Africa24 TV (€23bn Africa infrastructure); EAIF 2026 release.