ADF Approves $23.36M to Expand Clean, Reliable Electricity Access in Bosaso, Somalia

The Bosaso initiative is part of a larger momentum in Somalia to expand renewable energy solutions, strengthen infrastructure, and promote economic resilience.

The African Development Fund (ADF) has approved a $23.36 million grants package to expand access to clean, affordable and reliable electricity in Bosaso, a rapidly growing economic hub in Somalia’s Puntland State. The investment represents a major milestone in Somalia’s efforts to strengthen its fragile energy system and improve living conditions for households, businesses and displaced communities.

The new project—Rehabilitation and Expansion of the Bosaso Power Grid and Strengthening of Energy Sector Institutions—is financed by the ADF ($9.62 million) and the Transition Support Facility ($13.74 million). It aims to transform the city’s electricity supply through new solar power generation, expanded distribution networks, and improved metering systems.

Transforming Energy Access in One of the World’s Least-Electrified Countries

Somalia has one of the lowest electricity access rates globally, with nearly 50% of the population still living without power. Those who are connected pay extremely high tariffs due to the widespread use of costly, polluting diesel generators. Unreliable power disrupts daily life, limits business growth, and hinders public service delivery.

The Bosaso project directly tackles these systemic challenges by:

• Introducing solar generation capacity and battery storage

• Expanding and modernizing the distribution network

• Installing modern, prepaid metering to help households manage energy use

• Providing solar home systems to families—especially internally displaced people (IDPs)—who have never had access to electricity

Improving Lives and Supporting Local Businesses

The project will significantly reduce energy costs for residents and enable businesses to operate more reliably. Expected benefits include:

• Affordable and stable power for markets, small retailers, and service providers

• Better access to lighting, refrigeration, communications, and essential household services

• Improved air quality due to reduced reliance on diesel generators

• Enhanced safety and productivity during evening hours

“These efforts will change lives in Bosaso,” said Bubacarr Sankareh, the Bank Group’s Lead Operations Advisor for Somalia.

“It will make electricity cheaper, cleaner and more reliable—a major step toward a stronger and more resilient energy future for Somalia.”

Supporting Jobs, Skills and Institutional Capacity

The project will generate construction jobs, create long-term opportunities in operations and maintenance, and help build a skilled local workforce. It will also strengthen public institutions through:

• Technical training for government officials

• Enhanced capacity for sector planning and regulation

• Improved governance and oversight of Somalia’s expanding energy markets

These efforts will lay the foundation for a more efficient, transparent and sustainable national energy sector.

Contributing to Climate Action and Environmental Sustainability

Bosaso’s transition from diesel to solar energy will be a major step toward lowering carbon emissions and reducing urban pollution. The project supports Somalia’s broader climate objectives by:

• Cutting greenhouse gas emissions

• Reducing noise and air pollution in crowded neighbourhoods

• Demonstrating scalable approaches to clean energy adoption

Building a More Resilient and Inclusive Energy Future

The Bosaso initiative is part of a larger momentum in Somalia to expand renewable energy solutions, strengthen infrastructure, and promote economic resilience. By improving the reliability and affordability of electricity, the project will:

• Support livelihoods and local commerce

• Improve living standards for vulnerable communities

• Encourage private investment in Somalia’s energy transition

With ADF’s support, Bosaso is poised to become a model of how clean energy investments can transform lives in fragile and low-access settings.