The World Bank has lifted its decade-long ban on financing nuclear energy projects, a major policy shift that could significantly alter Africa’s energy investment landscape. The move is part of a broader “all-of-the-above” energy strategy aimed at supporting developing economies as they work to meet rising electricity demand and transition to low-carbon power sources.
Under the new framework, the Bank will now consider funding for nuclear energy infrastructure, including small modular reactors (SMRs), reactor life extensions, and power grid enhancements in collaboration with the International Atomic Energy Agency (IAEA). The decision comes at a time when electricity demand in developing countries is projected to more than double by 2035, with sub-Saharan Africa among the regions facing the most acute energy access challenges.
This change could position African countries such as Ghana, Nigeria, Kenya, and South Africa to advance their nuclear ambitions by tapping into multilateral financing previously unavailable for such projects. By removing restrictions, the World Bank opens the door for diversified energy investment portfolios that include nuclear as a stable baseload power source alongside renewables.
According to World Bank President Ajay Banga, the updated strategy responds to the need for practical and scalable energy solutions in the face of both growing demand and climate change. He emphasized that “nuclear energy must be considered where it is technically, financially, and environmentally feasible,” signaling a more flexible approach to power financing.
For African economies, the shift presents both a financing opportunity and a geopolitical signal. It may encourage other development partners, such as the African Development Bank and the Asian Infrastructure Investment Bank to reevaluate nuclear energy as part of their funding strategies. Additionally, it bolsters Africa’s position in climate negotiations by providing a pathway to industrial growth without escalating emissions.
As the World Bank steps back from upstream oil and gas financing, its support for nuclear development could reshape the continent’s long-term energy security and industrial competitiveness.
