Gridworks, a British government-owned investor focused on Africa’s electricity networks, has signed agreements to develop and invest in electricity transmission projects in Ethiopia valued at around USD 400 million.

The agreements were signed on Monday during a visit to Ethiopia by British Foreign Minister Yvette Cooper. The visit was part of the United Kingdom’s broader engagement in the Horn of Africa, with a focus on economic initiatives linked to job creation.

The two transmission projects represent Ethiopia’s first public private partnership investments in the country’s transmission network, as the government continues to introduce reforms aimed at attracting private sector participation in the state dominated economy.

According to a joint statement issued by the Ethiopian and British governments, one of the projects will connect Ethiopia’s Somali Region with the central and northeastern electricity grids. The second project will support the development of wind and solar energy plants in the northeast and strengthen the electricity interconnection with neighbouring Djibouti.

British Ambassador to Ethiopia Darren Welch said transmission infrastructure plays an important role in economic growth, job creation, and improving livelihoods, adding that the projects are expected to support Ethiopia’s renewable energy development.

Ethiopia’s Finance Minister Ahmed Shide said the projects would improve the reliability of power supply and contribute to industrial growth. He also noted that the projects would help expand electrification, as nearly half of Ethiopian households are still not connected to the national grid.

In addition, the UK said it would provide up to GBP 17.5 million (USD 23.91 million) in technical assistance through a program aimed at strengthening Ethiopia’s public investment and asset management systems.

Source: Reuters