The World Bank has said that access to affordable and reliable electricity could unlock Africa’s job creation potential, transform economies, and lift millions out of poverty.

In a new blog post titled ‘Switching on Opportunity: How Electricity Can Transform Jobs in Africa’, the bank noted that while energy advances have revolutionised work globally over the past 150 years, Africa’s progress remains slow, with about 600 million people still lacking access to power.

“Affordable and reliable electricity is key for firms seeking to scale operations more efficiently in the region,” the bank stated.

“High electricity costs undermine the competitiveness of private sector firms, often forcing them to rely on manual processes instead of adopting high-productivity technologies that require more energy.” It added.

The World Bank warned that an unreliable power supply continues to be a major barrier to growth, with blackouts causing business disruptions that reduce employment rates by an estimated 5 to 14 percentage points.

According to the institution, energy access has become one of the most critical levers for economic transformation and job creation across the continent. It said sectors such as agribusiness, light manufacturing, mining, construction, health care, and tourism could see significant productivity gains through more intensive and reliable power use.

To accelerate progress, the lender said it is leveraging $30 bn in resources from its International Development Association over the next five years to support Mission 300, an initiative aimed at providing electricity to 300 million Africans by 2030. The funding represents about 20 per cent of its total support to the region.

“This level of commitment is matched by governments themselves, who are driving reforms, setting bold targets, and creating the conditions needed to transform their energy sectors through National Energy Compacts,” the financier added.

These national energy plans aim to expand infrastructure at competitive costs, integrate regional power markets, attract private investment, and strengthen utilities.

The World Bank cited examples across the continent where electricity expansion is already creating jobs and boosting productivity. In Ethiopia, one project has connected more than eight million people and over 19,000 schools, clinics, and government facilities. Tanzania’s Rural Electrification Expansion Program has linked over 16,000 rural businesses to the grid, supporting food processing, fish farming, and construction.

Similarly, Senegal’s Energy Access and Scale-Up Project aims to electrify 600 health clinics, 200 schools, 700 small and medium-sized enterprises, and 200,000 households, creating jobs through installation, maintenance, and supply chains.

In Sierra Leone, the lender said, demand-driven mini-grids are proving that rural electrification can be commercially viable when tied directly to productive activities such as milling, cold storage, and digital services.

“These engagements reflect broader efforts across the region to transform the energy landscape with practical solutions that do more than just turn on the lights; they also create jobs at scale,” the World Bank stated.

The bank maintained that powering Africa’s industries, health centres, and small businesses is essential to building a stronger, more resilient, and better-skilled workforce capable of driving long-term growth.