African Development Bank Approves $58m for Clean Energy in Eritrea

The African Development Bank Group has approved $58.04 million to expand access to clean and reliable electricity in three towns in Eritrea’s southwest Gash Barka region.

Under the Eritrea Energy Integrated Project, the funding comprises a $37.31 million African Development Fund grant and $20.73 million from the Bank’s Transition Support Facility. The project will deploy a 34-megawatt solar-powered mini-grid system to strengthen distribution networks and expand local energy capacity.

The initiative will deliver affordable electricity for households and businesses in Tesseney, Berantu, and Kerkebet, powering water pumping, irrigation, and agro-processing. The project is expected to benefit around 306,000 people, create jobs during construction and operation, and support small enterprises linked to renewable energy services.

Kevin Kariuki, Bank Group Vice President for Power, Energy, Climate & Green Growth welcomed the approval. “This timely investment will help deliver reliable and affordable clean power to communities in Eritrea that need it most, thereby spurring job creation, strengthening local economies and helping Eritrea move towards a sustainable energy future,” he said.

The project falls under the Bank Group’s Desert to Power initiative, which aims to harness solar potential across eleven Sahelian countries to increase electricity access and foster socio-economic transformation.