African minigrids to expand with new business plan

Leading minigrid companies in Africa have released a 17-step action plan aimed at accelerating electrification efforts across the continent. The plan, endorsed within a Mission 300 Industry Position Paper, outlines priorities for funders, governments, and the industry to align with the scale and speed needed to meet Africa’s electrification targets.

Mission 300 Overview

Mission 300, spearheaded by the World Bank and the African Development Bank, aims to connect 300 million people to electricity by 2030. Twenty-nine African governments have already signed Energy Compacts with the banks. An analysis of these Compacts indicates a strong governmental desire for minigrids to play a significant role, with expectations to serve over 115 million people through 23 million connections by the end of the decade.

Key Industry Messages

The industry emphasizes that achieving Mission 300 requires a significant shift in delivery methods. Delivering 23 million minigrid connections within five years demands unprecedented coordination and scale. The sector is prepared to meet this challenge, but success hinges on swift action regarding capital deployment, regulation, and institutional execution.

Access to both corporate equity and local currency debt is crucial for minigrid companies to expand operations. Reaching the Mission 300 goal will necessitate a total of $28–46 billion in capital, including over $10 billion in equity by 2028. Funders are urged to publish clear, time-bound capital plans, including measurable delivery milestones, to track performance.

Standardization of policy frameworks, technical standards, and Key Performance Indicators (KPIs) is essential for accelerating progress and building investor confidence. Governments are encouraged to enable cost-reflective tariffs, eliminate import duties and taxes that increase equipment costs, and allow deployment in commercially viable settings.

Mission 300 KPIs should consider the economic impact beyond household connections, specifically including connections to small and medium enterprises (SMEs) and social institutions. This broader approach will promote higher utilization, stronger economics, and more sustainable minigrid systems.

Industry Endorsements and Capabilities

The companies endorsing the Position Paper collectively operate 392 active minigrid sites, have invested over $300 million, and possess a development pipeline exceeding 1 GW, representing a capital requirement of up to $8.2 billion. These companies are prepared to deliver, contingent on a supportive enabling environment.

Call to Action

Industry leaders stress that achieving 300 million new connections has significant implications for capital flows, regulatory alignment, and institutional delivery. While the minigrid industry is ready to contribute, success will depend on funders and governments matching ambition with effective execution. Over 600 million people in Africa currently lack access to electricity, highlighting the urgency of the situation.