Senegal Seeks Grants to Power 6,471 Villages

Senegal's finance minister sought grants and low-interest loans from development partners to bring electricity to 6,471 villages without power by 2029. The meeting, held on October 6th, aimed to gather financing commitments and establish a roadmap for rural electrification between 2026 and 2029. Finance Minister Cheikh Diba emphasized the importance of affordable funding, as it affects foreign investors in Senegal's bonds.

The financing plan, costing around 400 billion CFA francs (about US$686 million), was presented on October 1st. Diba urged partners to favor grants, concessional loans, and blended finance, which combines public and private capital. He stressed that any new money must not compromise Senegal's debt sustainability. In March 2025, the International Monetary Fund confirmed that hidden loans increased central government debt from 74.4% to 99.7% of GDP at the end of 2023.

Senegal's energy minister, El Hadji Abdourahmane Diouf, highlighted two key figures: the 6,471 villages without power and the financing requirement of 400 billion CFA francs (approximately US$686 million). He noted that each village would require about US$106,000 to receive electricity. The funding gap exceeds the US$550 million Power Compact signed with the Millennium Challenge Corporation in 2018.

While some projects are already underway, Senegal aims to achieve universal electricity access by 2029, according to Diouf. This follows a previous 2021 financing round that gathered 237 billion CFA francs (about US$406 million). Oil and gas production in Senegal, which began in June 2024 and April 2025 respectively, could potentially support electrification efforts, but the connection process still requires infrastructure like poles, cables, and transformers.