AfDB Grants $19.5 Million to Boost Eritrea's Renewable Energy Access

Minister Teklemichae emphasized the collaborative spirit of the initiative, stating, “We are proud to say that Africa is working with Africa to bring change to Africa.

The African Development Bank Group (AfDB) and the Government of Eritrea have formalized a $19.5 million grant agreement aimed at significantly enhancing renewable energy infrastructure through the Desert to Power Eritrea 12MW Mini Grid Project.

The funding agreement was officially signed on March 10, 2025, by Eritrea’s Minister of Finance and National Development and the country's AfDB Governor, Dr. Ghiorghish Teklemichae, alongside Dr. Léandre Bassole, Deputy Director General for East Africa at the African Development Bank. The grant, provided by the Bank's Transitional Support Facility (TSF), will facilitate the installation of solar mini-grids totaling 12 megawatts, distributed across Teseney (6MW), Kerekebet (3MW), and Barentu (3MW).

Minister Teklemichae emphasized the collaborative spirit of the initiative, stating, “We are proud to say that Africa is working with Africa to bring change to Africa. This project is crucial for the prosperity of our people, and we are committed to successful cooperation.”

This renewable energy project will directly benefit over 235,000 Eritrean citizens, with a notable 20% of the beneficiaries identified as women and youth. Impacted sectors include residential communities, small-scale agricultural enterprises, agro-processing operations, and critical water supply systems. Additionally, over 160 educational institutions and 90 healthcare facilities across the Gash Barka region will experience significantly enhanced and reliable energy access.

To ensure sustainability and strengthen local capabilities, the project will include comprehensive training for 25 Eritrean companies, supplying them with essential tools and equipment. A design and engineering consultancy firm, selected through a transparent contracting process, will supervise and guide the project's implementation in partnership with the national Ministry of Energy and the Eritrea Electricity Corporation (EEC).

“The African Development Bank, your Bank, is here to work with you for you,” said Deputy Director General Bassole during the signing ceremony. “Our primary goal is to support countries in driving their own sustainable development through capacity building and knowledge transfer, which are essential to long-term success.”

The initiative aligns strategically with Eritrea’s Interim Country Strategy Paper (2022-2024), which emphasizes sustainable infrastructure development and economic diversification through strengthened agricultural value chains. It also complements Eritrea’s 2018 National Energy Policy, designed to significantly elevate electrification rates and achieve a 20% renewable energy contribution by 2030.