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28 Feb 2026

Africa’s Energy Future Gets Major Boost from World Bank and U.S. DFC

Africa’s Energy Future Gets Major Boost from World Bank and U.S. DFC

This week brought a surge of institutional capital commitment to Africa’s energy sector as the World Bank pledged $6 billion in mostly concessional financing for Mozambique’s public investment priorities, while the U.S. International Development Finance Corporation (DFC) approved a slate of strategic investments aimed at reinforcing energy resilience, critical minerals supply chains and economic stability across the continent.

The World Bank’s pledge is part of a broader country partnership framework supporting economic recovery, job creation and private sector‑led growth over the next five years. The $6 billion package – comprised of low-interest loans and grants – will fund a wide range of public investment projects aligned with national development goals, including energy access and economic corridor strengthening. Additional mobilization of private sector capital is expected, estimated at another $4 billion.

While the financing isn’t limited to power infrastructure, energy remains a core pillar of Mozambique’s development ambitions. The country hosts several large-scale energy projects, from offshore gas developments in the Rovuma Basin to the Mphanda Nkuwa Hydroelectric Dam, all aimed at expanding electricity access and supporting industrialization. Revenues from oil and gas exploration increasingly contribute to state income, reinforcing the sector’s strategic role in broader economic transformation.

DFC Strategic Investments

Complementing this multilateral financing, the DFC authorized a new wave of strategic investments focused on advancing economic development, energy resilience and critical mineral supply chain security. Expanded authorities granted by Congress have increased the agency’s investment capacity, enabling it to mobilize private capital alongside public funding in high-impact sectors across the continent.

Though specific deal terms and projects remain confidential pending further approvals, the DFC emphasized that these investments will strengthen essential energy and mineral supply chains while fostering sovereign stability and long-term growth. Funding is structured to attract private sector participation by improving project credit profiles and offering tailored risk-sharing mechanisms that lower barriers for commercial investors in emerging markets.

Private Sector Opportunities

With these financing commitments in place, Africa’s energy landscape is primed for a new wave of private sector engagement. Investors and developers will have the chance to explore high-impact ventures at forums like Invest in African Energy (IAE) 2026 in Paris, a platform connecting policymakers, project sponsors and global investors. The combination of institutional funding, policy support and private capital interest enhances project bankability and highlights Africa’s energy sector as a strategically prioritized investment destination.

For investors, institutional pledges of this scale reduce perceived sovereign and sector risk, highlight early-stage projects for co-investment and shift Africa’s frontier markets from niche opportunities to strategic destinations for long-term energy investment. As delegates prepare to gather in Paris, the mix of policy support, multilateral financing and private capital interest could translate into tangible deal flow, deeper pipelines and more actionable investment opportunities across the continent’s energy landscape.

IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.invest-africa-energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com

 

 

 

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