The African Development Bank (AfDB) has approved an amount of €22.9mn to support Phase II of Côte d’Ivoire’s electrification drive, known locally as ‘Programme Électricité Pour Tous’, or PEPT.
The financing includes up to €16mn from the bank and up to €6.9mn from the Sustainable Energy Fund for Africa (SEFA).
It marks the first AfDB subscription to a local currency social bond in the West African Economic and Monetary Union (WAEMU) region.
The project will finance 400,000 new electricity connections over 2025-2026, benefiting 2.2 million people, of which 35 per cent live in rural communities.
It is a flagship initiative under Mission 300, the AfDB’s programme to provide electricity access to 300 million Africans by 2030, according to Kevin Kariuki, vice president of the bank’s power, energy, climate, and green growth division.
“This innovative social bond structure exemplifies how the bank is deploying creative financing solutions to achieve universal energy access,” said Kariuki.
“By mobilising capital markets and making electricity connections affordable for low-income households, we are powering economic transformation and improving lives across Côte d’Ivoire.”
The PEPT program, launched in 2014, reduces electricity connection costs for eligible low-income households and small businesses from XOF 150,000 (West African CFA franc) to a symbolic XOF 1,000, with the balance repaid over 2 to 10 years through electricity bills.
The new social bond has also gained support from the Emerging Africa & Asia Infrastructure Fund (EAAIF) ,with a guarantee from the International Finance Corporation (IFC), and Norwegian Investment Fund for Developing Countries (Norfund).
Ahmed Attout, director of the AfDB’s financial sector development department, highlighted the significance of the financing.
“This landmark transaction for the bank marks a major step in advancing the use of green, social, and sustainability instruments within the BRVM market,” he said.
BRVM is a regional stock exchange located in Abidjan and serving various West African countries.
“The bank is proud to collaborate with other development finance institutions and local institutional investors to deepen market integration and foster a sustained flow of sustainable financing across the continent,” said Attout.
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AfDB backs local currency social bond (Image source: AfDB)
