The Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions project will be financed through the African Development Fund, which is contributing $9.618 million, and the Transition Support Facility, providing $13.74 million.
The project will introduce new solar power generation, expand the city’s electricity distribution network and install modern meters to help households better manage and reduce energy consumption. Solar home systems will also be provided to families who have never had access to electricity before, including internally displaced people living in vulnerable conditions.
Somalia remains one of the countries with the lowest electricity access rates globally, with about half of the population living without power. Those connected to the grid face some of the highest electricity costs in Africa, largely because supply depends on diesel generators that are expensive and highly polluting. Unreliable power supply continues to constrain household welfare, service delivery and business growth.
African Development Bank Group Lead Operations Advisor for Somalia Bubacarr Sankareh described the approval as a major step towards transforming daily life in Bosaso. He noted that the project would make electricity cheaper, cleaner and more reliable, while strengthening the foundations of a more resilient energy sector.
Lower electricity costs are expected to benefit small businesses, markets and service providers, enabling more stable operations and longer trading hours. Households will gain improved access to lighting, refrigeration and other essential services, while cleaner energy sources are expected to reduce pollution in densely populated neighbourhoods.
Beyond infrastructure, the project includes technical training and capacity building for public institutions to improve energy sector planning, regulation and oversight. Job creation is also anticipated, both during construction and through long-term roles in system operation and maintenance.
By replacing diesel generation with solar power and battery storage, the project will significantly cut carbon emissions and support Somalia’s long-term climate and development goals.
–AfDB/ChannelAfrica–
