By: African sustainability matter

A significant investment aims to transform the energy landscape in a key Somali city. On 16 December 2025, the African Development Fund approved a $23.36 million grant to expand access to clean and reliable electricity in Bosaso, a vital port city in northeastern Somalia.

The funding will support a multi-faceted approach to tackling the city's energy crisis, where reliance on imported diesel has made power both unstable and prohibitively expensive. The project will finance new solar power generation capacity, essential upgrades to the local grid, the installation of modern metering systems, and the distribution of off-grid solar home systems for households currently without any electricity access.

This intervention addresses a critical barrier to development in one of the world's most energy-deprived nations. In Bosaso, where power tariffs can exceed $0.80 per kilowatt-hour, businesses and households are crippled by high fuel costs. The project is designed to lower energy prices, stabilize supply, and immediately improve living standards by providing basic lighting and power to displaced families and off-grid communities.

Economically, reliable electricity is expected to bolster local livelihoods—allowing fish traders to reduce spoilage, enabling small businesses to operate without daily generator costs, and supporting essential services like clinics and schools. The initiative also includes a focus on strengthening Somalia's fragile energy institutions through capacity building, aiming to improve long-term sector governance.

Beyond Bosaso, the project exemplifies a strategic model for advancing energy access in conflict-affected and fragile states across Africa. By leveraging decentralized renewable technologies and targeted institutional support, it seeks to create a tangible, sustainable pathway out of energy poverty, demonstrating how tailored solutions can power growth and resilience in challenging contexts.