Private Investment Powers Africa’s Electricity Transmission Revolution

Sub-Saharan Africa is seeing a notable change in its energy sector as private investors begin funding electricity transmission projects, an area traditionally handled by cash-strapped state utilities. This shift is largely driven by the rise of Independent Transmission Projects (ITPs), which are increasingly being viewed as a key solution to the continent’s longstanding “transmission deficit.” For years, weak grid infrastructure has limited access to reliable electricity for millions of people, slowing economic growth and development.

A significant example of this change is the Amari project in Uganda, led by the developer Gridworks. The project is set to become the first modern ITP in the region to start construction, marking a major milestone for private participation in transmission. Gridworks has also secured a $400 million project in Ethiopia, demonstrating growing investor confidence in African energy infrastructure. Meanwhile, countries such as South Africa and Kenya are advancing their own competitive bidding processes and public-private partnerships to expand national grids.

The ITP model works similarly to independent power plants. Private investors provide the capital needed to build high-voltage lines and related infrastructure, taking on the financial and operational risks. In return, they sign long-term service agreements and earn revenue through tolling fees. This setup benefits both governments and consumers. Indebted states can expand their energy networks without straining public finances, while consumers enjoy more stable electricity and potentially lower tariffs.

The mining sector has become a strong driver of these projects. In the Copperbelt region, which stretches across Zambia and the Democratic Republic of Congo, private developers are working on projects to provide a reliable power supply for industrial operations. These projects often serve dual purposes, supplying electricity to both mining companies and national grids.

While private involvement in transmission is not entirely new—the decades-old interconnector between Zambia and the DRC is an example—it is now being modernized and scaled up. International financial institutions, including the World Bank and the African Development Bank, are supporting this transition through initiatives such as “Mission 300,” which aims to improve energy access across Africa.

By transferring the financial burden of building infrastructure to private investors, African nations are gaining the momentum needed to modernize their energy systems. The growth of ITPs offers a practical way to expand electricity access, strengthen national grids, and support economic development. For the first time in decades, there is clear progress toward closing the transmission gap and ensuring more reliable power for both households and industries across the continent.