Damaseke Mwale's remote village in northeast Zambia

When solar panel strips arrived in Damaseke Mwale's remote village in northeast Zambia, he recognized a significant opportunity. He purchased land, constructed a home, and launched various businesses, including a grocery store and a venue for screening football matches.
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"That's when my life started to change," said Mwale, 41, seated in his living room adjacent to his small shop. He noted that even his children's academic performance improved, as they could now study at night. Mwale represents one of the initial beneficiaries of a technology that holds the promise of electrifying a continent where over 80% of the 680 million people live without electricity.
These mini-grids are designed to supply power to small communities not connected to national power networks, and the economics surrounding them indicate a pivotal moment may be approaching. Decreasing solar panel prices, more favorable regulations from African governments, and international investments are accelerating the deployment of mini-grids, from Nigeria to Madagascar. In January, the World Bank initiated a program aimed at providing electricity to 300 million Africans by 2030, a venture that could potentially attract investments exceeding $85 billion. "We're at a turning point," said Yariv Cohen, co-founder and CEO of Ignite Power. The Abu Dhabi-based firm is in the process of acquiring the African mini-grid business from French utility Engie SA, which powers Mwale's village. "We've never seen $30 billion allocated for energy access in Africa — we hadn't even seen $1 billion before." The exact number of existing mini-grids is uncertain. Manoj Sinha, CEO of Husk Power Systems, the largest operator of solar mini-grids worldwide, estimates that Africa could ultimately host around 200,000 units. Cohen is more cautious, noting that there are currently only a few hundred in operation. In Zambia, the village of Chitandika in the Chipangali district received its mini-grid in 2019. The arrival of solar panels has transformed the Chipangali area into a bustling hub, featuring well-lit barber shops and schools that can now offer enhanced IT support without relying on costly petrol generators. Headteacher Tryson Banda remarked on the dramatic changes in the environment, citing improved lighting and the introduction of new appliances. His school has expanded from six to 28 teachers, becoming a more appealing work environment. Local mechanic Simon Makowani is now able to offer welding services instead of directing customers elsewhere in the province. "Before the grid, I focused solely on mechanics," he explained. "Now that I can weld, it has significantly increased my earnings." Countries seeking access to funding must commit to running competitive tenders, setting tariffs high enough to ensure the sustainability of state utilities, and prioritizing the use of the lowest-cost electricity, which is predominantly renewable. Nigeria serves as a model of how favorable regulations can attract investment; over the past few years, at least 7 million people have gained access to reliable electricity with World Bank support, as commercial mini-grid operators supply both local communities and the unstable national grid. In Malawi, electricity access has nearly doubled to 27% since 2023, driven largely by the World Bank-supported Ngwee Ngwee Ngwee fund, which finances initiatives to extend electricity services to off-grid populations.
In Chichewa, a local language, "Ngwee" means bright. "I can't think of anything more critical than electricity," stated Akinwumi Adesina, president of the African Development Bank, which is providing billions in funding alongside the World Bank. With the continent holding the title for the world's lowest electrification rate, he emphasized, "That's not a gold medal I want Africa to possess."

Bloomberg

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