Somalia: African Development Fund Approves $23 Million To Boost Clean Energy Access In Bosaso

The African Development Fund has approved a grant package worth $23.36 million to provide clean and reliable electricity to the city of Bosaso in Somalia under the Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions project.

The project will deliver solar home systems to households that have never had access to electricity, including internally displaced persons living in vulnerable conditions.

Somalia has one of the lowest electricity access rates in the world, with about half of the population living without power.

Those who are connected face extremely high electricity costs, as most power generation relies on diesel generators, which are expensive to operate and highly polluting.

Inadequate and unreliable electricity supply continues to disrupt daily life and constrain the growth of local businesses.

Government agencies also face challenges in managing the energy sector due to limited technical and financial capacity.

Bubacarr Sankareh, the African Development Bank Group’s Lead Operations Advisor for Somalia, welcomed the approval, saying: “This project will change lives in Bosaso for families and small businesses. It will make electricity cheaper, cleaner, and more reliable, and represents a major step toward a stronger and more resilient energy future for Somalia.”

The initiative is expected to reduce electricity costs for local residents and improve reliability for businesses. Markets, small shops, and service providers will benefit from stable and more affordable power supplies.

Households will gain improved access to lighting, refrigeration, and essential domestic services, while cleaner energy solutions will reduce pollution and enhance living conditions in densely populated neighborhoods.

The project will also create employment opportunities during the construction phase and generate long-term jobs in system operation and maintenance. In addition, it will strengthen public institutions through technical training and capacity-building initiatives, enabling Somalia to better plan, manage, and regulate its energy sector.