In Yemen, nearly 800,000 people (of whom approximately 50 percent were women and girls) benefited from new or improved electricity service.
Over 117,000 households gained electricity access via grid or off-grid connections, with over 36,000 female beneficiaries.
Over 3.2 million individuals (51 percent of whom are female) received improved electricity access in critical facilities, such as health centers, schools, andwater systems.
In Djibouti, over 14,005 households have been connected, benefiting approximately 98,035 individuals, including over 42,000 women and girls, and contributing to a 16 percent increase in total household connections nationwide.
The installation of 2,900 public streetlights has enhanced safety and security, directly benefiting almost 121,800 people.
Over 219,835 people now benefit from the project, either through direct household connections or improved public lightings.
Synopsis
Much of the Middle East and North Africa (MENA) region has achieved near-universal access to electricity, but Yemen and Djibouti are lagging behind. Only 65 percent of people in Djibouti have electricity access, while in Yemen around 76 percent of people have electricity access (estimates suggest that only 12% of the population relies on the utility). The World Bank is working to address the challenge of electricity access in these countries through a range of measures including innovative financial mechanisms, strengthening markets, and promoting energy transitions.
Between 2018 and 2022, the Yemen Emergency Electricity Access Project (YEEAP) worked to improve electricity access in rural and peri-urban areas using solar energy. Implemented by UNOPS, it benefited nearly 800,000 individuals, of whom approximately 50 percent were female, by providing solar systems to households and critical facilities. Building on its success, a follow-up operation, the Yemen Emergency Electricity Access Project Phase II was approved in June 2022. The Djibouti Sustainable Electrification Project (SEP), launched in June 2017 has connected 14,005 households (benefiting over 98,035 people, including 5,000 vulnerable households) and installed 2,900 streetlights, benefiting almost 121,800 people, significantly improving access to electricity and community safety, with 46 percent of beneficiaries being women/girls.
Beneficiary Quote
For Aicha, a mother of seven in Balbala, one of Djibouti's largest slums, electricity was once a distant dream. Like many others, her family relied on unsafe kerosene lamps and unreliable battery-powered flashlights. The lack of electricity affected every aspect of their lives, from her children's education to the care of her son with special needs.
Today, Aicha's home is a testament to the transformative power of the World Bank’s SEP. Her children can now study comfortably at home, and fans provide much-needed relief from the sweltering heat. "It's made such a difference for us," Aicha shares. "Now, my children can focus on their studies, and we don't have to worry about the heat as much."
In Yemen's Zameh subdistrict in the Al-Naderah district, fetching water was once a daily struggle. Thanks to the World Bank-funded YEEAP, this challenge has been transformed, improving lives significantly. Muhammad Abda Ubaid, a resident of Zameh, said, "Women and children used to embark on a four-hour journey to fetch water from a distant well and bring it home. They started the journey as early as 3 a.m. to be one of the first arrivals and avoid the crowding at the well.” In 2023, YEEAP transformed Zameh and nearby villages by installing solar-powered water pumping systems. Designed by UNOPS, the system relays water through multiple tanks at increasing altitudes, ensuring clean water reaches households across remote mountain villages. "This is a blessing!" added Muhammad. "Today, water reaches our homes. Women and children no longer have to walk long distances to bring water – it's a dream coming true!"
Challenge
While most of the MENA region enjoys near-universal electricity access, Djibouti and Yemen lag behind significantly. In Djibouti, only 65 percent of the population (and less than 20 percent in rural areas) had access in 2022. During the same period, in Yemen 76 percent of the population had access to electricity. The World Bank estimates that 12 percent of the population relies on public electricity, while 76 percent have access (but that could mean only receiving one or two hours of grid electricity a day). Many Yemenis have a small pico system that provides just enough for light, fan, and a phone charger and that is classified as “access.” Over 90 percent of Yemenis in the Internationally Recognized Government (IRG) controlled areas are connected to the grid, but experience prolonged blackouts due to lack of fuel for power plants. Most recently Aden faced a major electricity blackout due to fuel supply shortages.
Yemen’s prolonged conflict has devastated its energy sector and worsened already inadequate energy supply, leaving rural areas reliant on kerosene. This exacerbates crises in healthcare, water, and education, while failure of power supply also limits children’s ability to study in the evenings and contributes to additional security and safety concerns among women, deepening gender disparities.
Similarly, access to electricity remains a major impediment to Djibouti’s socioeconomic growth. The country relies on imported hydropower from Ethiopia, accounting for over 80 percent of its power supply, supplemented by a 60-megawatt (MW) privately-owned wind farm and 120-MW thermal capacity from polluting publicly owned diesel generators, of which only 60 MW are effectively available due to aging and costly infrastructure. Addressing these barriers is vital for achieving Djibouti’s Vision 2035, which aims for universal energy access and renewable energy reliance, aligned with Sustainable Development Goals (SDG 7 and SDG 13).
Approach
The Middle East and North Africa (MENA) region faces urgent energy infrastructure challenges, requiring improved investment quality to accelerate energy transitions and strengthen energy security. With limited fiscal space and rising debt, countries must explore innovative strategies to mobilize private financing for infrastructure. MENA holds immense potential to become a global green energy hub, with abundant solar (4.5 kilowatt-hour (kWh)/kilowatt peak (kWp) daily photovoltaic (PV) output) and wind resources (an average speed of 7.5 meters per second), proximity to major markets, and opportunities for clean electricity and green hydrogen exports.
The World Bank is addressing these issues through three strategic priorities: scaling up energy transition to reduce reliance on fossil fuels and tap into renewable energy potential, reforming energy state-owned enterprises and markets, and promoting regional connectivity and energy trade.
In Djibouti and Yemen, these regional priorities are reflected in projects tailored to country needs: given shortfalls in access to electricity, the World Bank approach prioritizes access, and promotes energy transitions, as abundant natural resources hold considerable potential to increase energy security in these countries.
In Yemen, the Emergency Electricity Access Project (YEEAP) has worked to enable the installation of solar units in peri-urban and rural households and critical public facilities (e.g., hospitals, schools). The project engaged the private sector, focusing on microfinance institutions (MFIs), which were instrumental in developing solar financing solutions. By gradually transferring procurement responsibilities to MFIs and reducing subsidies, the project strengthened the local solar value chain and market sustainability. The project harnessed innovative financing mechanisms, including subsidies tailored to market conditions, encouraging affordability while fostering private sector growth. Pay-As-You-Go schemes further improved accessibility for low-income households, especially women.
In Djibouti, expansion of electricity access to the poorest segments of the Djiboutian population, through the Djibouti Sustainable Electrification Program (SEP) relied on strengthening the country’s transmission network in Djibouti City and the Interior Zones. The constructed low- and medium-voltage lines, as well as 60 new substations, to enable the extension of electricity previously underserved areas. Beyond physical infrastructure, the SEP emphasized capacity building and institutional development, as well as key studies such as the distribution master plan that would assist utility and the Government in continuing boosting access rate throughout the country.
Results: Year Launched – Year Closed
In Yemen and Djibouti, a focus on expanding energy access has enabled household connections that benefit close to 900,000 people in the two countries, of whom 420,837 are female. Electrification of public infrastructure, including critical facilities (health centers, schools and water infrastructure) and streetlights, has benefited more than 3.4 million people.
In Yemen, the YEEAP was completed in December 2022, and delivered transformative outcomes, improving access, supporting local markets, and promoting long-term sustainability in the energy sector. It provided electricity access to close to 800,000 people, approximately half of whom were women and girls. High-quality solar systems reached over 117,000 households, including 36,157 female-headed households. The project electrified critical facilities, benefiting over 3.2 million people and significantly improving service delivery.
By replacing diesel generators with solar systems, the initiative reduced greenhouse gas emissions, enhanced air quality, and bolstered climate resilience. Institutional strengthening efforts fostered local capacity and private sector growth among MFIs, and female staff participation doubled to enable MFIs to improve outreach to women.
Additionally, the project emphasized capacity building, training solar technicians, and raising awareness of renewable energy benefits, ensuring long-term impact and sustainability. Building on its success, the YEEAP–Phase II was launched in 2022 and has helped build 347 facilities have been built, benefiting nearly 2.6 million people, while over 450,000 people have received PV solar systems.
In Djibouti, the SEP has significantly transformed the country’s energy landscape. By 2024, 14,005 households were connected to electricity, benefiting over 98,035 individuals, including over 45,096 women and girls, and enhancing livelihoods for 5,000 vulnerable households. Additionally, 2,900 streetlights were installed, benefiting nearly 121,800 people and improving safety and mobility. Over 219,835 people benefit from the project, either through direct household connections or enhanced public lighting, far exceeding the initial target of 130,900 beneficiaries. Moreover, infrastructure investments included over 220 kilometers of power lines and 60 substations, facilitating reliable electricity access in underserved regions.
Public services—schools, health centers, and markets—benefited from reliable electricity, improving educational outcomes, healthcare delivery, and economic opportunities. A total of 26,100 people gained access to electricity through community connections, including at mosques, schools, and health centers. Intangible outcomes included enhanced safety, environmental benefits from reduced diesel reliance, and the empowerment of women and girls through targeted interventions. These achievements align with Djibouti’s long-term vision of universal access to electricity and sustainable development, supported by the preparation of the country’s power distribution master plan, which aims to connect 100 percent of its population to reliable electricity sourced entirely from renewable energy by 2035.
Graphs and Data Visualization
Results Achieved in Yemen
Collaboration across the World Bank Group
In Djibouti, the World Bank, through a MIGA guarantee, has supported the development of a 60 MW privately owned wind farm to facilitate the country’s transition toward renewable energy. This project contributes to Djibouti's objective of achieving 100 percent renewable energy supply by 2035 and will help meet the increasing power demand generated by the SEP, enabling Djibouti to continue its electrification efforts while relying on renewable energy sources.
World Bank Group Contribution
In Yemen, the YEEAP project’s total cost was $50 million, financed entirely by an IDA grant. The second phase of the project, YEEAP II, was approved with additional financing of $100 million until 2026, and has disbursed $65 million to date.
In Djibouti, the SEP was funded by a $23.3 million IDA credit and $4.85 million from Djibouti’s government, supporting infrastructure expansion, capacity building, and technical assistance.
Partnerships
In Yemen, the YEEAP project benefited from close collaboration with the United Nations Office for Project Services (UNOPS, the UN agency dedicated to project implementation and management in development and the humanitarian space). Due to the conflict in Yemen, project implementation was managed by UNOPS. This arrangement leveraged UNOPS expertise in fragile environments and complemented the urban infrastructure efforts of the World Bank's Yemen Integrated Urban Services Emergency Project (YIUSEP), which also worked closely with UNOPS. project was recently recognized through the prestigious National Globe award for the year 2024.
Looking Ahead
In Yemen, YEEAP Phase II is building on the success of YEEAP Phase I, supporting households, critical facilities, and vaccine cold chains. Emphasizing sustainability, YEEAP Phase II enhances private sector involvement, innovative financing, and local capacity, advancing Yemen's clean energy transition.
In Djibouti, the focus remains on supporting the government in achieving universal access by 2035. According to the World Bank Group corporate scorecard, the project has reached 98,035 (as of February 7, 2025) compared to the planned 97,729, beneficiaries have been reached.
In addition, the high cost of electricity, combined with Djibouti’s extreme heat of its arid climate, limits low-income households' ability to meet essential energy needs, such as cooling and food preservation (as highlighted in the country CCDR).
To address these challenges, the World Bank is also providing support to (i) the second Djibouti-Ethiopia Power System Interconnection Project, a US$55 million investment project, with the objective to increase the share of RE in Djibouti’s energy mix through the imports of more hydropower (Project Development Objective: to enhance the trade of reliable, low-cost, and clean electricity between Ethiopia and Djibouti), and (ii) an extensive technical assistance to the government and Electricité de Djibouti (EDD) aiming at: strengthening sector governance, enhancing regulatory frameworks, promoting private sector participation in renewable energy generation, improving sector performance and competitiveness, and increasing the reliability as well as the affordability of electricity services to different types of consumers in Djibouti.
