By: Economy Middle east

The International Finance Corporation, the World Bank’s private-sector lending arm, has signed a $40 million convertible loan agreement with EDF Power Solutions to expand access to off-grid solar energy across Africa.

The announcement was made Tuesday by Ethiopis Tafara, IFC’s vice president for Africa.

The financing combines direct IFC funding with capital from private investors to support the large-scale deployment of pay-as-you-go solar systems for households and small businesses.

The initiative also aims to strengthen Africa’s off-grid energy market under Mission 300, a joint World Bank and African Development Bank program designed to connect 300 million people to electricity by 2030.

The pay-as-you-go model allows customers to purchase solar kits through installment payments, a system that has become one of the main tools for expanding electricity access among low-income households, especially in rural and underserved communities.

Africa’s Energy Gap Continues to Drive Investment

The deal comes as access to electricity remains one of Africa’s biggest structural challenges.

According to the African Development Bank, nearly 600 million Africans still lacked access to electricity in 2025, most of them in sub-Saharan Africa.

That gap has fueled growing investment in decentralized energy systems, particularly off-grid solar, mini-grids and independent power producers.

Several large-scale programs are already under way across the continent.

They include the African Development Bank’s New Deal on Energy for Africa, the ECOWAS Regional Off-Grid Electricity Access Project covering 19 countries, and Mission 300.

According to a progress report released in November 2025, Mission 300 had already mobilized more than $8.5 billion and established national “energy compacts” in 17 countries.

IFC Expands Its Energy Investment Strategy

The EDF Power Solutions financing is part of a broader IFC strategy focused on African energy infrastructure.

On Sunday, the institution also announced plans to invest up to $40 million in equity financing into the Facility for Energy Inclusion, a pan-African clean energy fund managed by Cygnum Capital.

That investment is expected to increase the fund’s assets under management to about $750 million. The fund finances decentralized energy projects across Africa, including home solar systems, mini-grids and small independent power producers.