UK Boosts Ethiopia's Energy with $400 Million Agreement

The UK, through Gridworks, has pledged $400 million to bolster Ethiopia's electricity infrastructure, marking the first public-private partnerships in the country's transmission network. The projects aim to connect various regions with renewable energy sources and provide technical assistance to enhance public investment systems.

In a strategic move aimed at enhancing Africa's electricity infrastructure, Gridworks, a UK government-owned investor, has committed $400 million to develop transmission projects in Ethiopia. This investment was announced during UK Foreign Minister Yvette Cooper's visit to the country, highlighting a concerted effort to address migration issues through job creation initiatives.

The landmark projects represent Ethiopia's first public-private partnerships in its transmission network, aligning with Prime Minister Abiy Ahmed's policy of opening the economy to private investment. One project will connect the Somali region with central and northeast grids, while another supports new wind and solar plants in the northeast and bolsters connections with Djibouti.

Ethiopia's Finance Minister, Ahmed Shide, emphasized that the agreements will improve power supply reliability, foster industrial growth, and accelerate grid connection for nearly half of the population. Additionally, the UK will provide £17.5 million in technical assistance to enhance Ethiopia's public investment systems, as part of broader efforts to curb illegal immigration from the Horn of Africa region by improving local economies.

(With inputs from agencies.)