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08 Aug 2025

The Gambia’s Energy Overhaul Paves Way for Industrial Growth, Urban Access

The Gambia’s Energy Overhaul Paves Way for Industrial Growth, Urban Access

The Gambia is accelerating efforts to expand urban electrification as a pathway to economic diversification, foreign direct investment (FDI) and improved quality of life. As part of its broader development agenda, the country is working to close gaps in urban service delivery while enabling a more reliable, resilient energy sector.

Bolstered by renewable energy and climate-resilient infrastructure, The Gambia has set an ambitious target of achieving 90% electricity access by the end of 2025. The government, together with multilateral partners such as the World Bank, EU and Economic Community of West African States institutions, is rolling out extensive grid expansion and rural electrification initiatives.

Integrated Electrification and Grid Modernization

International finance institution the World Bank recently approved $52.6 million in financing to improve electricity and transport infrastructure in The Gambia, marking a major step toward the country’s energy diversification and urban modernization agenda. Approved last May, the project is expected to directly benefit over 100,000 people by expanding electricity connections and upgrading rural and urban roads across the country.

A key initiative driving urban electrification in The Gambia is the Gambia Infrastructure Project, which includes the construction of 142km of medium-voltage lines, 350km of low-voltage lines and 92 substations to expand grid access in rural areas. Urban areas will be enhanced through the upgrade of two primary electrical substations and replacement of 10 overload secondary substations in the Greater Banjul Area, addressing longstanding voltage instability and service interruptions.

The project builds on recent milestones such as the commissioning of The Gambia’s first 225 kV transmission line and control center in Salaji under the Gambia Electricity Restoration and Modernization Project. The project – co-finance by the World Bank, EU and European Investment Bank – includes 18km of high-voltage transmission lines, six medium-voltage feeder lines and substation upgrades expected to benefit over 800,000 people.

Economic Impact and FDI Potential

These developments support the government’s goal of universal energy access by 2030, while attracting renewable energy investment via a new credit enhancement mechanism to unlock $60 million in private capital. The electrification efforts also align with The Gambia’s Long-Term Climate-Neutral Development Strategy 2050.

Expanded urban electrification is designed to lower production costs, improve industrial competitiveness and facilitate the growth of services, light manufacturing and digital infrastructure. Coupled with climate-resilient road construction – targeting 60km of improved connectivity and an active mobility corridor – the integrated upgrades are expected to reduce trade and transport bottlenecks for businesses and improve access to urban markets.

These investments complement The Gambia’s growing role in West African regional power trade, enabled by its connection to the OMVG Interconnection Project – a 1,677km, 225 kV transmission line with 800 MW transfer capacity. With increased grid stability and renewable integration, The Gambia is positioned to attract long-term FDI and deliver tangible improvements in urban living standards.

As The Gambia positions itself as a hub for sustainable growth and regional integration, the upcoming MSGBC Oil, Gas & Power 2025 conference – taking place in Dakar from December 9-10 – offers a vital platform to showcase progress, attract investment and forge strategic partnerships in the evolving energy and power sectors.

Explore opportunities, foster partnerships and stay at the forefront of the MSGBC region’s oil, gas and power sector. Visit www.msgbcoilgasandpower.com to secure your participation at the MSGBC Oil, Gas & Power 2025 conference. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

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