The African Development Fund has approved a $23.36 million grants package to bring clean and reliable electricity to Bosaso, Somalia. The project, titled Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions, is funded through $9.62 million from the African Development Fund and $13.74 million from the Transition Support Facility. It will introduce new solar generation, expand the distribution network, install modern meters, and provide solar home systems to households, including internally displaced families who previously had no electricity access.
Somalia faces one of the lowest electricity access rates in the world, with about half of the population lacking power. Those connected often rely on expensive and polluting diesel generators, making electricity costly and unreliable. This limits daily life, hinders business operations, and strains government agencies with limited technical and financial capacity to manage the energy sector.
The project is expected to reduce electricity costs for residents and enable businesses to operate more reliably. Local markets, shops, and service providers will benefit from steady, affordable power, while families will gain better access to lighting, refrigeration, and other essential household services. Cleaner energy will also reduce pollution, improving living conditions in crowded neighborhoods.
The initiative will create jobs during construction and provide long-term employment opportunities in system operations and maintenance. It will also strengthen public institutions through technical training and capacity building, enabling Somalia to plan, regulate, and manage its energy sector more effectively.
By replacing diesel generators with solar power and battery storage, the project will significantly cut carbon emissions and contribute to Somalia’s long-term climate goals, supporting a sustainable and resilient energy future for the country.
