Precious Anga
Lagos — Senegal is turning to energy efficiency and infrastructure modernisation to cut electricity costs, ease pressure on its power grid and strengthen the competitiveness of households and businesses.
The country’s approach, highlighted in the 2026 Africa Sustainable Development Report, centres on targeted investments in efficient lighting and port infrastructure as part of a broader strategy to link sustainability with economic growth.
A major component is the Programme to Promote Efficient Lighting Lamps, known as PPLEEF. Approved by the African Development Bank in 2024 and launched in 2025 with an €8.51m loan, the programme is designed to replace inefficient incandescent bulbs with LED lamps in about 700,000 households and 80,000 small businesses across Dakar, Thiès and Diourbel.
The project is expected to generate more than 189 GWh in annual electricity savings, reducing demand on Senegal’s national grid while lowering electricity bills for participating households and businesses.
Rather than investing solely in additional generation capacity to meet rising demand, the programme targets energy consumption by helping consumers use existing electricity more efficiently. It also employs an on-bill financing model, allowing beneficiaries to repay the cost of the efficient lighting through savings on their electricity bills.
The initiative is particularly significant for households and small businesses that may struggle to meet the upfront cost of replacing existing lighting systems. By linking repayment to energy savings, the programme seeks to make energy-efficiency investments more accessible.
The 2026 Africa Sustainable Development Report said the initiative demonstrates how demand-side energy efficiency could complement investments in new electricity generation across Africa. Improving efficiency can also help utilities manage peak demand and reduce pressure on constrained generation and transmission infrastructure.
Senegal is also recording progress in transport infrastructure. The Port of Dakar’s score on the Container Port Performance Index improved from -82 in 2023 to +23 in 2024, following investments in port equipment, logistics systems, storage capacity and digital coordination.
The improvement has wider economic implications because efficient ports reduce delays and logistics costs for manufacturers, importers and exporters while strengthening connections between domestic producers and regional and international markets. For Senegal, the Port of Dakar also serves as an important gateway to the wider West African hinterland.
The country’s experience demonstrates the economic value of connecting energy efficiency with infrastructure development, research, digital systems and industrial policy. The report noted that Senegal invested about 0.58 per cent of its GDP in research and development during the period assessed.
The African Development Bank has linked the lighting programme to Senegal 2050, the country’s national transformation agenda, which includes ambitions to expand electricity access and reduce energy costs. With African economies facing rising energy demand, infrastructure gaps and tighter financing conditions, Senegal’s strategy places greater emphasis on making existing systems more efficient while continuing to expand capacity.
