AFC Commits $300M to Burkina Faso’s Largest Power Plant

AFRICAN BUSINESS AND ECONOMYJuly 13, 2026 at 10:15 AM UTC

TLDR

Africa Finance Corporation invests $60 million in construction of Burkina Faso's largest power plant by Turkish company Aksa Enerji.
The 119-megawatt plant aims to boost domestic electricity generation, reducing Burkina Faso's reliance on imported power.
AFC's investment in the project is set to decrease electricity imports, enhance power reliability, and support industrial growth in Burkina Faso.

Africa Finance Corporation has released the first $60 million from a $300 million financing package to support construction of Burkina Faso’s largest power plant, marking the institution’s first investment in the country.

The 119-megawatt plant is being developed by Turkish power producer Aksa Enerji and is expected to begin operations in 2027. The project aims to increase domestic electricity generation and reduce Burkina Faso’s dependence on imported power.

About 60% of Burkina Faso’s electricity is imported from neighboring countries, leaving the country exposed to supply disruptions and higher energy costs. Only about 20% of the population has access to electricity, making reliable power one of the country’s main development challenges.

According to AFC, the new plant is expected to cut electricity imports by more than half while increasing national generation capacity. The project is also expected to improve power reliability, support industrial activity and create a better environment for private investment and job creation.

The investment expands AFC’s partnership with Aksa Enerji after financing power projects in Senegal and Ghana in 2025. Established in 2007, AFC has invested more than $19 billion across 36 African countries and focuses on infrastructure in energy, transport, telecommunications, heavy industry and natural resources.

Key Takeaways

Burkina Faso’s power project addresses one of the country's biggest economic constraints. Limited electricity access and heavy dependence on imported power have increased costs for businesses and households while exposing the country to regional supply disruptions. A larger domestic power plant could improve energy security, reduce import bills and provide more stable electricity for factories, mines and small businesses. For investors, reliable power is often one of the first conditions for expanding manufacturing and industrial activity. The project also shows AFC’s growing role as a long-term infrastructure financier in Africa, particularly where commercial lenders may be reluctant to invest because of political or security risks. However, the project also highlights Burkina Faso’s longer-term energy challenge. A gas-fired plant can improve supply in the near term, but future demand growth will require continued investment in transmission networks, renewable energy and regional interconnections. The success of the project will depend not only on completing construction on time but also on securing fuel supply, maintaining affordable electricity prices and improving access to the grid. If these conditions are met, the investment could become a foundation for broader industrial growth and stronger economic resilience.

Burkina Faso