African Development Fund Approves $23.36 Million Grant to Expand Clean Power Access in Bosaso, Somalia

The Board of Directors of the African Development Fund has approved a grant package worth $23.36 million to improve access to clean, reliable and affordable electricity in Bosaso, a key commercial city in Somalia.

The funding will support the Rehabilitation and Expansion of the Bosaso Power Grid and the strengthening of energy sector institutions. The project is financed through a $9.62 million allocation from the African Development Fund and $13.74 million from the Transition Support Facility. It will focus on introducing new solar power generation, expanding the city’s electricity distribution network and installing modern metering systems to help households manage and reduce energy consumption.

As part of the initiative, solar home systems will also be deployed to households that currently lack access to electricity, including internally displaced people living in vulnerable conditions. The project aims to address Somalia’s chronic electricity challenges, where nearly half of the population remains without power and those connected face some of the highest electricity costs globally due to heavy reliance on diesel generators.

Bubacarr Sankareh, Lead Operations Advisor for Somalia at the African Development Bank Group, said the project would have a transformative impact on local communities. He noted that the initiative will make electricity in Bosaso cheaper, cleaner and more reliable, while strengthening the foundations for a more resilient energy sector in Somalia.

The improved power infrastructure is expected to reduce electricity costs for residents and enable businesses to operate more efficiently. Small enterprises, markets and service providers will benefit from a more stable power supply, while households will gain better access to lighting, refrigeration and essential services. The shift to cleaner energy sources will also help reduce pollution in densely populated areas.

In addition to energy access, the project will generate employment during construction and create long-term jobs in system operation and maintenance. It will also strengthen public institutions through technical training and capacity building, improving the government’s ability to plan, regulate and manage the energy sector.

By replacing diesel-based generation with solar power and battery storage, the project is expected to significantly cut carbon emissions and support Somalia’s long-term climate and sustainable development goals.