WASHINGTON, August 1, 2025 — 木瓜影院 Board of Executive Directors has approved , an initiative to bring clean and reliable electricity to nearly six million people in Ethiopia. The program is supported by a $400 million credit from the World Bank’s International Development Association (IDA)* and a $24 million grant from the Government of Denmark.
The Government of Ethiopia (GoE) has taken significant steps to expand electricity access through substantial investments in power generation, grid and off-grid solutions, and the launch of ambitious national programs. While these initiatives are noteworthy, further progress is needed to fully meet the country’s growing needs.
Preliminary findings from the 2025 World Bank Multi-Tier Framework Survey indicate that Ethiopia’s Tier 1+ access rate stands at 44 percent. This means that close to 71 million people, primarily in rural and peri-urban areas, are still living without a sufficient level of access to this essential service. Consequently, millions of families continue to rely on polluting fuels for lighting and cooking, children struggle to study after dark, health clinics operate without reliable power, and economic opportunities remain limited, perpetuating cycles of poverty and constraining social and economic development across the country.
“The ASCENT Ethiopia program reflects our dedication to supporting Ethiopia’s pursuit of universal energy access. By prioritizing underserved and low-income communities and making energy accessible and affordable, we are enabling nearly six million additional people to gain electricity connections, improving essential services, and supporting Ethiopia’s climate and development goals,” said Maryam Salim, World Bank Division Director for Eritrea, Ethiopia, South Sudan, and Sudan.
Building on the achievements of existing programs including (ELEAP) and the , the ASCENT Ethiopia program aims to expand on-grid electrification by connecting new households, non-residential customers, and towns near the medium-voltage network over the next five years. The program will also enhance policies and institutional frameworks to promote equitable access, including revisions to the National Electrification Program and grid connection policies; improve utility performance through digitalization and enhanced customer service; and strengthen institutional capacity in areas such as fiduciary management, environmental and social risk management, citizen engagement, and gender inclusion, thereby supporting the government in establishing robust systems and frameworks for sustainable energy access.
The strong collaboration with Denmark will expand and promote inclusive energy access for low-income groups, women, and other underserved communities in Ethiopia, by reducing connection costs for 480,000 new customers. As the program evolves, ASCENT Ethiopia will leverage additional partnerships and incentivize the private sector to broaden affordable electricity access, secure additional funding, and promote innovation. Together, these efforts are expected to accelerate progress toward universal access, ensuring that no one is left behind in Ethiopia’s energy future.
The implementation of ASCENT Ethiopia will be led by the Ministry of Water and Energy in collaboration with the Ethiopian Electric Utility (EEU). The project adopts the Program-for-Results (PforR) approach, which ties funding directly to tangible, measurable outcomes. This people-centered strategy encourages all stakeholders to prioritize meaningful change, while promoting transparency, and accountability. The program is also aligned with Mission 300, the joint World Bank Group and African Development Bank initiative which aims to connect 300 million people in Sub-Saharan Africa to electricity by 2030. By aligning with this ambitious goal, ASCENT ensures that progress achieved in Ethiopia will not only benefit local communities but will also contribute to the broader vision of universal energy access across the continent.
* The International Development Association (IDA), established in 1960, helps low-income countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve people’s lives. IDA is one of the largest sources of assistance for its 78 client countries, 40 of which are in Africa. Since 1960, IDA has provided $563 billion to 116 countries. Annual commitments have averaged about $34.5 billion over the last three years (FY22-FY24), with about 71% going to Africa. Learn more online: IDA.worldbank.org. #IDAworks
Contacts:
In Addis Ababa: Gelila Woodeneh
+251 11 66 27 00
gwoodeneh@worldbank.org
In Washington: Daniella van Leggelo-Padilla,
+1 (202) 751 8156
dvanleggelo@worldbank.org
