Aid Agencies Rethink Energy Access Strategies Amid Iran War

Rising fuel costs and supply disruptions force donors to innovate financing for renewables and natural gas.

Apr. 16, 2026 at 9:42pm

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An abstract illustration composed of overlapping triangles and rectangles in shades of blue, green, and grey, conveying the complex, interconnected nature of global energy systems and supply chains.As the fallout from the Iran war ripples through the global energy landscape, development institutions are innovating new financing models to build resilient power infrastructure.Washington Today

As the war in Iran disrupts global energy supplies, aid agencies and development banks are being forced to recalibrate their strategies for financing and delivering energy access projects worldwide. Institutions like the West African Development Bank (BOAD) and Qatar Fund for Development (QFFD) are tapping into capital markets through innovative financing tools like hybrid bonds, sustainable bonds, and securitization to fund renewable and natural gas projects to build more energy resilience in developing regions.

Why it matters

Access to reliable and affordable energy is a critical enabler for development, but the fallout from the Iran war is fracturing energy supplies globally. This is forcing aid agencies and development banks to rapidly rethink their energy access strategies, moving away from traditional grant-based models and instead leveraging capital markets to accelerate investment in renewables and natural gas infrastructure.

The details

BOAD, headquartered in Togo, is tapping into capital markets to fund new energy projects, including an 85-kilometer gas pipeline and a 50-megawatt solar plant in Senegal. QFFD, which operates through both grants and loans, is increasingly issuing bonds with multilateral development banks like the World Bank to finance renewables and natural gas. Both institutions see this shift towards innovative financing as crucial to building energy resilience, as countries can no longer solely depend on aid donors for their electricity and natural resource needs.

  • The war in Iran has been ongoing for 7 weeks as of April 2026.
  • In 2020, only 52% of the population in West and Central Africa had access to electricity, according to the World Bank.

The players

Serge Ekué

President of the West African Development Bank (BOAD).

Fahad Al-Sulaiti

Director-General of the Qatar Fund for Development (QFFD).

World Bank

A multilateral development bank that QFFD is partnering with to issue bonds to finance energy projects.

International Monetary Fund

The IMF is holding its Spring Meetings alongside the World Bank, where the issues of energy access and financing were discussed.

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What they’re saying

“Energy, for us, is no longer a sector but an enabler at the forefront of our organization. You can't do anything without energy, as simple as that.”

— Serge Ekué, President of the West African Development Bank (BOAD)

“We are really in shock. It's something new for the region, especially [in the Gulf]. This year, we are really in a different shape, and not from the perspective of financing, but from perspectives of safety, economy, foreign policy. This shock is really not acceptable.”

— Fahad Al-Sulaiti, Director-General of the Qatar Fund for Development (QFFD)

What’s next

BOAD and QFFD plan to continue exploring innovative capital market instruments like hybrid bonds, sustainable bonds, and securitization to fund new renewable energy and natural gas projects across West and Central Africa in the coming year.

The takeaway

The fallout from the Iran war has forced a major rethinking of energy access strategies among aid agencies and development banks. Rather than relying solely on traditional grant-based models, these institutions are turning to capital markets to rapidly scale up investment in renewable energy and natural gas infrastructure to build greater energy resilience in the developing world.