What Africa’s Electrification Requires
Often, the discussion around energy challenges in Africa focuses solely on connecting end-users. With about half of Sub-Saharan Africa’s population lacking electricity and four out of five people in need of clean cooking solutions, expanding electricity connections is indeed an urgent priority. However, linking homes and businesses to energy sources is only part of the solution. The other part is ensuring that energy supply is reliable and available at an affordable cost.
Among Africans who have access to the electricity grid, not even half can rely on a consistent supply. Without reliable electricity, households and businesses cannot depend on lighting, stoves, computers, irrigation systems, agricultural equipment, sewing machines, or other devices that can enhance prosperity and improve living standards. This is one of the main reasons that demand for electricity remains low across the continent.
One key to solving the challenges of reliability and efficiency in electricity in Africa is increasing investment in networks. Proper investments in transmission can help stabilize the grid, reduce outages, improve efficiency, and better utilize the cheapest energy sources wherever they are found on the continent. Without transmission, it is likely that all other investments in electricity generation and home connections will lead to limited usage.
The cost of developing transmission projects is only a small fraction of the overall expenses needed to achieve universal access to electricity. The International Energy Agency estimates that Sub-Saharan Africa needs annual energy investments exceeding $30 billion per year between now and 2030, which is more than eight times the current investments of $3.7 billion annually.
To stimulate higher investment in networks, African governments must engage the private sector. This means creating clear and long-term regulatory and policy frameworks to attract investors and reduce the cost of financing new projects. Currently, transmission networks across the continent are almost entirely operated and financed by state-owned electricity companies, which lack sufficient financial resources.
We know this can be successful. In 2024, Africa’s electricity sector achieved another year of double-digit growth, primarily due to increased private sector participation. Now, the expansion of the transmission network can follow the same recipe for success.
African countries can also draw inspiration from other emerging and developing economies for viable models. In Brazil, political and regulatory reforms that began in the 1990s opened the country’s electricity networks to private investment. Since then, according to the International Energy Agency, transmission and distribution capacity has more than quadrupled, enabling Brazil to achieve universal electricity access.
Similar models are likely to emerge soon in Africa. For example, Africa50, a multilateral infrastructure investor and asset manager established by African governments and the African Development Bank, along with Indian Energy Network Company, one of the largest developers and operators of transmission infrastructure in the world, has developed a public-private partnership for an electricity transmission project in Kenya. In collaboration with the Kenyan government, the project aims to build about 250 kilometers of new transmission lines to transfer renewable energy generated in the northern regions to industrial centers and demand hubs in the west of the country.
These public-private partnerships are crucial for bridging the significant funding and implementation gaps in energy infrastructure. Through regulatory reforms and risk-sharing mechanisms, private capital can help drive projects that would otherwise be difficult to finance. India has benefited from these models since it began liberalizing its energy sector in 1998. The Tala Transmission Project—a partnership between the state-owned Indian Energy Network Company and Tata Power—is a noteworthy example.
Closer regional coordination is also essential. Investing in modern grid interconnections allows for electricity exchange between countries that have a surplus and those that are experiencing supply shortages. These grids can play a significant role in emergencies, such as the devastating drought that affected hydroelectric production in Zambia. Already, 12 African countries in the West Africa Power Pool have synchronized their networks permanently, and the Southern African Power Pool is developing several transmission lines to support further integration.
However, Africa will need more distributors and planners to fully capitalize on existing regional grid connections and lay the groundwork for launching new networks. Greater regional integration will also help investors reduce the risks of their projects by expanding their potential customer base.
Africa will not achieve universal access to reliable electricity without significant investment in transmission infrastructure; however, this investment will not materialize without encouraging more private sector involvement. Globally, investment in the energy sector, especially in renewables, electricity, and resilient grid infrastructure, is growing. But to capitalize on this trend, governments must lead with meaningful policy and regulatory changes. Countries like South Africa, Kenya, and Morocco provide clear examples, having successfully attracted private sector investments in energy through establishing long-term energy plans and clear goals, encouraging public-private partnerships, and streamlining administrative processes.
Developing economies and emerging markets can learn from one another. Those that have achieved near-universal electricity access did so by liberalizing the necessary capital inflows. This should be the top priority for policymakers. Once reliable energy is secured, they can pursue economic development and begin improving the lives of hundreds of millions of people.
