African Development Bank Approves $58 Million Solar Mini-Grid Project To Power Eritrea’s Gash Barka Region

The African Development Bank has approved $58.04 million in grant funding to support a major solar mini-grid project in Eritrea’s Gash Barka region. The region, often called the country’s “breadbasket,” is known for its strong agricultural base and livestock resources. The new renewable energy initiative is expected to bring reliable electricity to the towns of Tesseney, Kerkebet, and Barentu, helping boost local development.

The funding package includes $37.31 million from the African Development Fund and $20.73 million from the Bank’s Transition Support Facility. The money will be used to build a 34 MW solar-powered mini-grid system and expand electricity access across the region. The project also includes the construction and upgrading of 542 kilometers of distribution lines. This will strengthen the local power network and connect more homes, public facilities, and businesses to affordable electricity.

The Eritrean project forms part of the AfDB’s larger “Desert to Power” program, which aims to harness the vast solar potential of the Sahel region to drive economic growth in 11 African countries. Unlike many energy projects that focus only on increasing generation capacity, this initiative links power supply directly with agriculture. Reliable electricity will support irrigation systems, agro-processing units, and cold storage facilities. This approach is expected to improve farm productivity, reduce post-harvest losses, and increase income opportunities for local communities.

The project is expected to benefit around 306,000 people. During the construction and operational phases, new job opportunities will be created, helping boost the local economy. In addition, the initiative will help build local skills in renewable energy management and technical maintenance, strengthening long-term capacity in the region.

Environmental benefits are also a key part of the program. The shift to solar energy will reduce dependence on diesel generators, which are currently used in many areas. This change is expected to lower greenhouse gas emissions and support Eritrea’s efforts toward a more climate-resilient and sustainable energy system.

The investment also supports the broader “Mission 300” goal, a joint effort between the World Bank and the African Development Bank to provide electricity access to 300 million people in Africa by 2030. According to Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate, and Green Growth, the project will help unlock economic activity, create jobs, and support Eritrea’s transition toward a cleaner energy future.