The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, has entered into a $40 million convertible loan agreement with EDF Power Solutions to accelerate the rollout of off-grid solar energy systems across Africa.
The funding arrangement, announced on Tuesday by Ethiopis Tafara, blends IFC capital with contributions from private investors to scale up pay-as-you-go solar solutions for households and small enterprises.
The initiative is expected to improve electricity access in rural and underserved areas, where millions of people continue to live without dependable power supply.
It also supports the broader Mission 300 programme, a partnership between the World Bank and the African Development Bank aimed at providing electricity access to 300 million Africans by 2030.
Across the continent, pay-as-you-go solar technology has rapidly emerged as a key energy solution. This approach enables users to obtain solar equipment through flexible instalment payments, making electricity more affordable for low-income families and small businesses that are not connected to national grids.
The new investment comes at a time when Africa continues to face a severe electricity access deficit.
Estimates from the African Development Bank indicate that about 600 million people in Africa were still without electricity in 2025, with sub-Saharan Africa accounting for the largest share of those affected.
This situation has driven increased funding into decentralized energy options such as solar home systems, mini-grids and independent power projects, especially as governments struggle to expand national electricity networks quickly enough.
Multilateral lenders and development finance institutions are also increasingly prioritising renewable energy investments across Africa, driven by rising demand, urban growth and global pressure to reduce fossil fuel dependence.
Mission 300 remains one of the continent’s most ambitious electrification programmes, attracting significant financial backing.
A progress update released in late 2025 revealed that the initiative had secured over $8.5 billion in funding and established energy agreements with 17 African countries.
The EDF-related financing is part of IFC’s wider strategy to expand clean energy investments across Africa.
Earlier in the week, IFC also announced plans to commit up to $40 million in equity funding to the Facility for Energy Inclusion, a pan-African clean energy platform managed by Cygnum Capital.
The facility finances off-grid energy projects including mini-grids, solar home systems and small independent power producers, and is projected to expand its assets under management to around $750 million following the new injection.
Experts argue that increasing private-sector participation will be essential to closing Africa’s electricity gap, improving supply reliability and supporting economic development in both rural communities and growing cities.