Côte d’Ivoire Secures $300 Million from MCC for the Energy Sector

The Côte d’Ivoire is set to strengthen its status as a key energy hub in West Africa. On September 18, the country secured $300 million (approximately 196.8 billion CFA francs) from the Millennium Challenge Corporation (MCC) under its regional Compact program. This funding aims to support the development of a regional electricity market in West Africa.

Ivorian Minister of Energy, Mamadou Sangofowa Coulibaly, shared the information during a panel discussion organized by Power Africa and MCC in New York on September 24. The event, themed "An Energy Solution for West Africa," was an opportunity for stakeholders to assess their partnerships and explore potential solutions to accelerate the region's electrification.

The regional Compact initiative seeks to increase the net quantity of energy that Côte d'Ivoire exchanges on the regional electricity market. It will also help strengthen regional energy security in West Africa.

Minister Coulibaly expressed his gratitude to the MCC for the approval of this substantial investment. He noted that a robust investment plan for electricity and renewable energy is already underway to meet both domestic and regional energy needs. Despite facing challenges such as natural gas availability and financial imbalances in the electricity sector, he emphasized the importance of reducing the cost of electricity production to make access to energy more affordable across Africa.

The minister further highlighted that electricity produced from gas remains the cheapest and most reliable option for Côte d'Ivoire. He called for increased investment in gas exploration and production to ensure energy security for the region. Furthermore, he stressed the need for private-sector involvement to expand the electricity supply at competitive rates, facilitated by low-interest financing.

With this $300 million funding, Côte d'Ivoire is poised to strengthen its electricity production, transport, and distribution networks, further cementing its role as a leading energy player in West Africa.

Source: Sika Finance