World Bank Reconsiders Exploiting Nuclear Energy Projects Funding In Africa

The World Bank is considering support for nuclear energy as part of a broader push to expand access to affordable and reliable energy, particularly across Africa.

In its 111th meeting, the Development Committee urged the World Bank to explore ‘further options for increased affordable and reliable energy access, including potential support for nuclear energy.’ This is coming at a period when the Bank seeks to diversify its energy portfolio while responding to rising demands for clean, dependable power.

The nuclear energy discussion ties closely to the Bank’s ‘Mission 300’ initiative, which aims to provide reliable electricity to 300 million Africans by the end of the decade. Mission 300 is seen as critical for unlocking economic growth, job creation, and poverty reduction across the continent.

Energy access remains a central development challenge across the continent. Over 600 million people in Africa lack reliable electricity, limiting opportunities for education, healthcare, and economic development. Nuclear power, with its ability to generate large amounts of low-carbon energy, is increasingly seen as a viable part of the solution alongside renewables.

Although the World Bank has historically been cautious about financing nuclear projects, citing cost, complexity, and safety concerns, the changing energy landscape and urgent development needs are driving a reassessment. The bank was encouraged to work closely with the African Development Bank, regional partners, and private sector stakeholders to explore practical and safe nuclear energy options.

At the same time, the World Bank reaffirmed its broader climate commitments, including dedicating 45 per cent of its financing to climate action through fiscal year 2026. Energy resilience, sustainable infrastructure, and disaster risk management remain high on its agenda as climate-related challenges intensify.

The US is also set out to revive nuclear energy.  In late March 2025, US Energy Secretary Chris Wright said: “America’s nuclear energy renaissance starts now,” while announcing that his Agency had relaunched a $900 million programme, launched initially during former US president Joe Biden’s administration in support of new small modular reactors.

“Abundant and affordable energy is key to our nation’s economic prosperity and security. This solicitation is a call to action for early movers seeking to put more energy on the grid through the deployment of advanced light-water small modular reactors.”

In January 2025, the IEA released a report identifying the main financing challenges for nuclear projects. Nuclear energy projects are mainly government-funded due to their size, cost, and high risks, which make private financing difficult. Governments play a key role in reducing risks and ensuring predictable cash flows, helping attract banks and lower financing costs.

While smaller modular reactors (SMRs) could draw more private investment, lifetime extensions are currently easier to finance than new builds. Multilateral development banks can support regulatory frameworks but have limited capacity to fund projects directly.

Green bonds are an emerging source of funding, mainly for extending the life of existing plants.