African Development Fund Approves $23 Million to Expand Clean Energy in Bosaso, Somalia

The African Development Fund (ADF) has approved a $23.36 million grant package to enhance electricity access in Bosaso, Somalia, targeting households, small businesses, and vulnerable populations including internally displaced people.

The Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions project, funded through the ADF ($9.62 million) and the Transition Support Facility ($13.74 million), will:

• Introduce new solar generation capacity

• Expand the distribution network

• Install modern meters for efficient energy management

• Provide solar home systems for families without prior electricity access

Somalia currently has one of the lowest electricity access rates globally, with roughly half the population living without power. Those connected face high costs as electricity is largely generated by diesel-powered systems, which are expensive and polluting. This situation limits business growth, public services, and daily life for residents.

Bubacarr Sankareh, Lead Operations Advisor for Somalia at the African Development Bank Group, said:

“This 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.”

Expected Benefits:

• Lower electricity costs for households and businesses

• Reliable power for markets, small shops, and service providers

• Job creation during construction and in long-term operations and maintenance

• Capacity building for public institutions to improve energy planning and regulation

• Environmental gains, including reduced carbon emissions by replacing diesel generators with solar and battery storage

The initiative aligns with Somalia’s climate and development goals, offering cleaner, more affordable electricity while boosting economic resilience and quality of life.

Contact: Juliet Otieno, Communication and External Relations Department, media@afdb.org