Africa’s Energy Sector Targets More Funds From PIDG

The Private Infrastructure Development Group (PIDG) is expecting new financial backing from Switzerland to boost private capital mobilisation for sustainable development projects across Africa and emerging markets.

Switzerland on Friday June 5, announced a $70 million contribution to PIDG, spanning the 2026–2030 funding cycle.

The organization finances essential infrastructure in developing countries, specifically targeting energy projects in sub-Saharan Africa. The World Bank estimates that nearly 600 million people in this region still lack access to electricity.

Consequently, this new funding will enable PIDG to advance its core mandate of attracting private investors to sustainable infrastructure developments. Since its inception, the organization has invested $5.6 billion in 258 projects.

These investments mobilized $29.8 billion in private capital and delivered new or modernized infrastructure to 232 million people.

However, global infrastructure demands continue to outpace current investment levels.

The Swiss government highlighted this financial disparity in its June 5 press release:

“The World Bank estimates that the cost of financing these infrastructures amounts to $2.7 trillion per year. Of this amount, the financing gap is approximately $700 billion. Public funds alone cannot bridge this need, but they can incentivize the private sector to invest more.”

In response to this funding gap, PIDG accelerated its deployment of capital into the African energy sector through multiple transactions in 2026. PIDG committed €4.3 million to Afreenergy Solar in March 2026 through its subsidiary, InfraCo. This capital supports the deployment of 30 MW of solar capacity and 10 MWh of battery storage in Senegal. Furthermore, the group expanded its regional footprint into East Africa at the start of the year.

PIDG executed a $3.3 million equity investment in Kenyan firm Sanivation in January 2026 to fund a waste-to-energy plant expansion in Naivasha. The group coupled this transaction with a $500,000 technical assistance grant. In addition to direct equity investments, the organization utilizes specialized funds to broaden its impact on continental infrastructure.

PIDG operates through the Emerging Africa & Asia Infrastructure Fund (EAAIF), which co-finances several energy projects across the continent. This portfolio includes the hybrid solar power plant in Kolda, Senegal. Looking forward, these localized projects align directly with the group’s long-term operational targets.

PIDG plans to increase support for least developed countries under its 2030 strategic plan. The strategy dictates that the organization will attract more capital toward early-stage project development and expand investments in climate-compatible infrastructure.