Nuclear energy is capital-intensive, and funding has been one of the challenges for African economies, already grappling with power deficit, amid rising demand.

At the Nuclear Energy Innovation Summit for Africa (Neisa) held in Kigali this week, funding was one of the sticking points that African leaders discussed at length.

When he spoke at the opening ceremony, Rafael Grossi, director-general, International Atomic Energy Agency (IAEA), was upbeat about accessibility of funding. He said money was available to bankroll Africa’s new nuclear energy projects and support the existing ones.

His optimism is buoyed by a game-changing decision by the World Bank last year, when it announced the lifting of a longstanding ban on funding for nuclear energy projects.

On June 11, 2025, World Bank Group president Ajay Banga declared an end to the ban that had only been in place formally since 2013, but the last and only time the multilateral lender funded a nuclear power project was 1959, with a $40 million loan to Italy.

At the Neisa, Dr Grossi acknowledged the funding gap in the implementation of energy projects but expressed optimism that multilateral lenders, including development banks, were now ready to fund nuclear energy investments.“Any good idea – in particular, when it comes to energy – needs finance. And, for many years, one very thick wall that separated many developed countries and Africa from the benefits of nuclear energy was finance,” he said.“But last year, a page was returned when, after consultations with the World Bank, we signed a historic agreement making it possible for the doors of international finance institutions to open for nuclear. Now, when your countries come to the African Development Bank or to the World Bank with an idea of a certain project, the World Bank will have a partner in the IAEA to make sure that the normality, the safety, the security, the non-proliferation package is there.”Dr Grossi pledged to deploy the instruments available to bridge the power gap.“From the perspective of the International Atomic Energy Agency, the issue is to establish the connectors that will facilitate implementation. We have the treaties, we have the conventions, we have meetings where we set the stage for what needs to be done. One very important thing is how to build capacity. We need to train, we need to unleash the force of African talent,” he said.

Business and political leaders agree that long-term investment, regional collaboration, strong institutions, and innovative financing models will be essential in accelerating Africa’s clean energy transition.

Leaders from the World Bank, African Development Bank (AfDB), East African Development Bank, and Trade and Development Bank examined the financial, regulatory, and infrastructure requirements needed to unlock investment in Africa’s nuclear energy future.

Donald Kaberuka, former president of the AfDB and now AU Special Envoy on Financing, spoke on the critical role of financing, regional integration, and regulatory credibility in advancing Africa’s nuclear energy future. He emphasised financing frameworks that can mobilise both African and international capital toward large-scale infrastructure development.

The key to accessing funding has been well received, but some leaders have an issue with the architecture.

Tanzania’s President Samia Suluhu Hassan, for instance, says that while Africa’s economic transformation depends on reliable, affordable, and sustainable energy systems, financing the projects is still a challenge. She noted that even when funding is available, the architecture is not suitable for the African context.“Africa needs innovative financing mechanisms, blending financial models and innovation capable of making nuclear projects profitable and accessible. Second is regulatory preparedness and institutional capacity, which are very essential. Third, public confidence and awareness is critical to allay fears of nuclear threats and legal opportunities,” the Tanzanian leader said.

Endorsing the expediting of nuclear energy projects amid rising power demand, President Samia recalled the Dar es Salaam Energy Declaration adopted at the Mission 300 African Energy Summit held in the Tanzanian commercial capital in January 2025.

The Dar Declaration reaffirmed the African collective commitment to accelerate access to renewable, affordable, and sustainable energy as a foundation for economic transformation and industrial development.

It further stated that no single energy solution can adequately address Africa’s growing demand, and therefore encouraged African countries to pursue “balanced and resilient energy strategies tailored to national circumstances.”“Nuclear energy should not be viewed as competing with renewable energy, but rather as a complementing broader effort to build a resilient, sustainable, and reliable energy system capable of supporting industrial transformation across our continent,” President Samia said.

Leaders of multilateral lenders who spoke at the summit acknowledged their emerging role in funding the new power projects but cited challenges in pooling the requisite resources.

Serge Ekué, president of the West African Development Bank, said the lender has been funding the fossil fuel projects and renewables such as solar, and is now looking to fund nuclear energy. He highlighted two traditional funding models and their shortcomings.“First, we rely 100 percent on the sovereign. The classical PPP financing, whereby you have a construction period, then succeeding concessional period, wouldn’t work. So, we need to think differently, based on two elements. The first one is long-term funding -- patience capital. Because when it comes to nuclear energy, the focus is more like 30 years of maturity. The second thing we need to make sure that we work on creditworthiness. And we can no longer rely on classical donations, classical subsidies, so we need to find ways to access the capital markets and the private sector. Their pockets are deep enough to fund what is needed here,” he said.

Governments could also seek ECFs (Extended Credit Facilities) a International Monetary Fund programme that provides medium-term financial assistance to low-income countries facing balance of payments problems. Others could take single debt from an anchor investor, then development banks could come in.

Meanwhile, Rwanda’s nuclear energy programme is on course, President Paul Kagame says. At the opening of the Neisa, the Rwandan leader received the IAEA Phase I Integrated Nuclear Infrastructure Review for Rwanda from Dr Grossi.

An SMR is a nuclear reactor that typically produces 300MW per unit—about one-third of the generating capacity of traditional reactor.

Towards this goal, the Rwandan government signed a memorandum of understanding with the US on strategic civil nuclear cooperation.

The deal was signed by Rwanda’s Minister of State for Foreign Affairs Usta Kayitesi and a secretary in US Department of State Bureau of Arms Control and Non-proliferation Renee Sonderman.in the presence of American embassy officials, Rwanda government officials and those of American energy firm Holtec International and Rwanda Atomic Energy Board. The deal is meant to pave the way for the deployment of Holtec’s SMR-300s in Rwanda.

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