Ethiopian Energy^Power Business Portal

East Africa is well known for a stunning natural landscape and spectacular tourist safaris that traverse a menagerie of exotic wildlife. It’s less well known for its industrial and commercial outputs. In fact, the burgeoning industrial and commercial sectors of many East African nations are hamstrung by a variety of impediments to economic growth, including the lack of affordable, reliable electricity service.

Historically, energy consumption and economic growth increase in lockstep, in what recent analyses show are a virtuous cycle: increased and intensified use of energy in production leads to economic growth, which in turn increases demand—and ability to pay—for more energy. Over the next four years, RTI International will partner with Power Africa in East Africa to catalyze reforms in the entire energy sector of Kenya, Tanzania, Ethiopia, and Rwanda. We will also be engaging in Uganda, Somaliland, Eritrea, Djibouti, Burundi, and eastern parts of the Democratic Republic of Congo. In each of these countries, our work continues the impressive work begun under the ambitious Power Africa Transactions and Reform Program (PATRP).

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RES4Africa organized a two days Executive Seminar from 05-06 March 2019 and a one day high‐level Business‐to‐Government (B2G) workshop on 07 March 2019 in Addis Ababa, Ethiopia.

While the Executive Seminar focused on an international benchmark for auction programs and project finance in the renewable energy sector, the Business‐to‐Government (B2G) workshop focused on the long‐term strategies for integrating renewable energy into the national electric system, attracting investments and exploiting the socio‐economic benefits of renewables in Ethiopia.

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From Kenya to Tanzania, from Uganda to Ethiopia, the familiar sound of petrol and diesel generators is about to disappear from the daily lives of millions of Africans. These East Africa countries have faced regular major power cuts since the early 2000s. But this is about to change; inhabitants of these countries are on the verge of switching them off for good, with the upcoming commissioning of a power transmission line to interconnect Kenya and Ethiopia. This line is scheduled to enter its operational phase in the course of 2019, providing an uninterrupted supply of electricity for all. 

Inaugurated in 2012, this project falls under one of the African Development Bank's High 5 priorities - to  Light up and Power Africa. Working with institutional partners, the Bank has mobilized resources to ensure the success of this project. At a cost of $1.26 billion, the project was co-funded by the African Development Bank ($338 million), the World Bank ($684 million), the Government of Kenya ($88 million) and the Government of Ethiopia ($32 million). 

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The African Development Bank has kicked off a feasibility study to explore the potential of electricity cooperative business models in Nigeria and Ethiopia. The effort is part of the Bank’s goal of achieving universal electricity access across Africa by 2025. Currently, power shortages diminish the region’s GDP growth by 2-4% per year, holding back job creation and poverty reduction efforts.

The study, funded by the South-South Cooperation Trust Fund, will be conducted by the National Rural Electric Cooperative Association (NRECA) International over three months. NRECA will consider regulatory, legal, technical and socio-economic factors that impact the creation of electric cooperatives in the two nations.

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