Electricity Cooperative: AFDB Starts Feasibility Studies in Nigeria, Ethiopia

electricityA view of the power lines as evening settles. Photo by David McNew
  • Electricity Cooperative: AFDB Starts Feasibility Studies in Nigeria, Ethiopia

In an effort to light up Africa by 2025, the African Development Bank (AfDB) has commenced a feasibility study to explore the viability of electricity cooperative business models in Nigeria and Ethiopia.

The research, sponsored by the South-South Cooperation Trust Fund, would be carried out by the National Rural Electric Cooperative Association (NRECA) International over a period of three months and NRECA would consider regulatory, legal, technical and socio-economic factors that affect the establishment of electric cooperatives in the two nations.

Batchi Baldeh, the Director, Power System Development, AfDB, said at the kick-off meeting that the study aligned with the Bank’s New Deal for Energy in Africa.

“This study is timely and aligned with the Bank’s New Deal for Energy in Africa. We look forward to working with NRECA International to execute the study, and to leverage its extensive experience in electricity cooperative business models to pave the way for the implementation of transformational projects across Africa” Baldeh said.

He explained that the cooperative models rely on strong partnerships among governments, rural/local communities and development partners for implementation and success.

He also said: “We selected Nigeria and Ethiopia following dialogue with their respective ministers of energy during the Bank’s Africa’s Energy Market Place held in July 2018, where they expressed their governments’ commitment to improve rural access through established models.

“We rely on this cooperation to explore this innovative model of delivering our High 5 to light up and power Africa.”

Baldeh later said the findings would be delivered in May 2019, adding that they would inform the potential of the project in the two selected countries.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]; Tel: +2347065163489.

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