AfDB Approves $68.26m for Mali’s Bamako North Loop to Boost Power Access

The approval, finalized on 12 November 2025 in Abidjan, marks a major milestone in Mali’s efforts to stabilize its electricity sector and meet soaring energy demand.

The African Development Bank Group (AfDB) has approved $68.26 million in financing for Mali to implement the Bamako 225 kV North Loop Project (PBNB)—a transformative energy infrastructure initiative designed to improve electricity access, strengthen grid reliability, and support Mali’s transition toward cleaner, more affordable power. The approval, finalized on 12 November 2025 in Abidjan, marks a major milestone in Mali’s efforts to stabilize its electricity sector and meet soaring energy demand.

The project is central to Bamako’s long-term development, where rapid urbanization, population growth, and rising energy needs have placed mounting pressure on an already fragile power system. With an estimated 10% annual increase in demand, insufficient generation capacity, and high losses, the capital urgently requires modernized infrastructure capable of meeting future needs.

Strong Multilateral Support for a Critical National Priority

The AfDB’s financial package brings together multiple funding sources:

• $35.27 million loan from the African Development Fund (ADF)

• $18.99 million loan from the Transition Support Facility (TSF)

• $5 million loan and $6.8 million grant from the Climate Investment Fund (CIF)

• $2.2 million grant from the Green Climate Fund (GCF)

Together, AfDB financing represents 36.13% of the project’s total cost, estimated at $190 million.

Additional cofinancing partners include:

• West African Development Bank (BOAD) – 27.36%

• Islamic Development Bank (IsDB) – 32.91%

• Malian government – 3.6%

This broad coalition underscores the project’s importance for regional energy integration, climate action, and socioeconomic resilience.

Closing Mali’s Energy Access Gap

Mali’s electricity sector faces persistent structural challenges. As of 2023:

• National electricity access stood at 55.8%, with deep disparities between urban (86.6%) and rural (30.4%) areas.

• Total generation capacity was 903.6 MW, more than half of which (54%) came from costly and polluting thermal sources.

• Power losses reached 22%, including technical losses of 10%.

• Heavy dependence on imported fuels exposed the country to price volatility and financial strain.

These issues have resulted in frequent outages, high costs, and the need for significant state subsidies.

Transforming Bamako’s Power Infrastructure

The Bamako 225 kV North Loop Project will deliver major infrastructure upgrades, including:

• Construction of a 225 kV double-circuit transmission line between Kodialani and Dialakorobougou

• Two new 225/33 kV substations in Safo and Kénié

• Expansion of existing substations in Kodialani, Kambila, and Dialakorodougou

• New medium- and low-voltage distribution lines to restructure the grid

• Electrification of newly developing neighborhoods

• Connection of 10,000 new households and productive users

• Installation of 2,000 smart meters for high-voltage customers

• Increased transmission capacity from 225 kV systems up to 600 MW

AfDB West Africa Director General Lamin Barrow said the project will be instrumental in addressing Bamako’s longstanding electricity challenges.

“This project will help safeguard Bamako's electricity supply and guarantee access to reliable, sustainable and modern energy services at an affordable cost,” Barrow said. “It should also boost agricultural value chains and employment for young people and women.”

Job Creation and Social Benefits

The project includes an ambitious employment and skills-development strategy:

• 320 temporary jobs, with at least 20% reserved for women

• 60 permanent positions

• 60 internships for young graduates (half for women), enhancing employability and technical expertise

Social-impact measures also include:

• Public consultations with local communities

• Support for municipalities on land management

• Training for technical and administrative stakeholders

A Climate-Friendly Investment

In line with Mali’s climate commitments, the project will help reduce greenhouse gas emissions by 1.12 million tonnes of CO₂ equivalent per year—over 50% lower than what the current energy system would produce without the upgrade. By replacing inefficient thermal generation with improved transmission capacity, the project supports the integration of renewable energy and reduces reliance on imported fossil fuels.

Implementation Timeline and Long-Term Benefits

Scheduled to run from January 2026 to December 2030, the North Loop Project will benefit the entire population of Bamako, improving power reliability for:

• Households

• Hospitals and schools

• Small businesses and industry

• Agricultural and value-chain activities

With better electricity access, the project is expected to stimulate economic growth, expand job opportunities, and strengthen social services.

A Major Step Toward Sustainable, Affordable Energy in Mali

The Bamako 225 kV North Loop Project represents a pivotal investment in Mali’s future. By modernizing critical infrastructure and reducing the cost and environmental impact of electricity, the initiative positions Bamako to meet its growing urban demands while building a more resilient, inclusive, and climate-compatible energy system.