Energy

The East Africa Energy Cooperation Summit showcases investment potential, innovation, and regional collaboration for transforming the region’s energy sector. (Image source: EnergyNet)

With data centres projected to consume 20% of global energy by 2050, is East Africa on the brink of a global investment surge, driven by untapped businesses and unmatched energy potential?

The region's untapped energy resources, alongside a thriving business landscape, offer a golden opportunity for investors.

In 2024, at the EnergyNet’s Powering Africa Summit in Washington DC, USA, MARA Holdings marked its entry into East Africa with a significant memorandum of understanding (MOU) with the government of Kenya. This agreement highlights the region's growing investment attractiveness and signals the start of an era where independent power producers (IPPs) could find greater commercial viability.

The East Africa Energy Cooperation Summit (EA-ECS), taking place on 29-30 January in Arusha, Tanzania, brought together energy leaders, IPPs, and EPCF stakeholders to explore the vast investment opportunities and innovations emerging in East Africa. Key players such as Africa Data Centres and iXAfrica are at the forefront, contributing to a growing regional energy market. The summit, led by the East African Community (EAC) Secretariat, served as a vital platform for discussing the region’s potential, with a focus on energy access, resource wealth, and investment opportunities.

The summit also showcased the importance of regional collaboration, with the EAC playing a pivotal role in bringing together policymakers, investors, and energy sector stakeholders to promote deeper integration. This collaboration reflects the EAC’s vision of driving industrialisation and enhancing cooperation among member states. Notable success stories, such as the Ethiopia-Kenya electricity highway, underscore the positive impact of cross-border energy initiatives in fostering both economic and social development.

Off-takers are increasingly seeking stable, diversified energy sources to support growing industries, especially in mining and digital infrastructure. The summit’s agenda highlighted the importance of maintaining grid stability to ensure sustained industrial growth, while also promoting commercial and industrial (C&I) energy generation.

Andrea Malueth, deputy secretary general (Infrastructure, Productive, Social & Political Sectors) of the East African community secretariat, "Energy is a pillar for development and growth and is crucial for the functioning of the economies of the EAC Partner States. The East Africa Energy Cooperation Summit will serve as the ideal platform for advancing projects and bringing tangible changes in the industry."

The EA-ECS also attracted high-level leaders from across the EAC, who joined private sector developers driving the future of the region’s energy infrastructure, catering to over 500 million people. Elisa Palmioli, producer at EnergyNet, highlighted the long-term potential of the region, stated, “Ten years from now, the EAC’s middle classes will have more job stability, more opportunities, and more disposable income than ever before. New railways, industries, ports, and tourism will position the region as the number one investment destination globally, taking the title back from both parts of Asia and Latin America.”

The summit underscored East Africa’s bright future, offering a compelling narrative for global investors looking to tap into one of the most promising energy markets in the world.

The ‘Mission 300’ initiative marks partnership between the African Development Bank, the World Bank Group, and global allies. (Image source: Adobe Stock)

Dar es Salaam hosts Africa Heads of State Energy Summit, launching Mission 300 to electrify 300 million Africans by 2030 through global partnerships

In a continent where millions still live without electricity, a revolutionary initiative is set to ignite hope. Next week, leaders from Africa and beyond will convene in Dar es Salaam, Tanzania, for the inaugural Africa Heads of State Energy Summit. The two-day gathering on January 27-28 will mark the launch of "Mission 300" (M300), an ambitious project aimed at connecting 300 million Africans to electricity by 2030.

A joint effort by the African Development Bank (AfDB) and the World Bank Group, alongside global partners, M300 seeks to address Africa’s energy deficit using innovative technologies and financing mechanisms. This initiative comes at a critical time when 600 million Africans—83% of the world’s energy-deprived population—lack access to electricity.

“No economy can grow, industrialise, or be competitive in the dark,” said Dr Akinwumi Adesina, president of the AfDB. “This partnership is a game changer for Africa’s development.” M300, first announced during the 2024 World Bank/IMF Spring Meetings, also enjoys support from the Group of Seven (G7) and the G20.

The summit will host several African and global heads of state, 1,500 participants, and key private sector representatives. Together, they will chart a course toward universal access to affordable, reliable, and sustainable energy.

The first phase of Mission 300 focuses on Chad, Côte d’Ivoire, the Democratic Republic of the Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia. These nations account for over half the global population without electricity and a quarter of those lacking clean cooking solutions. Other African countries will follow in subsequent phases.

Scaling energy access

Under the M300 initiative, the AfDB aims to deliver 50 million energy connections through its projects and ten-year strategy. Complementing this effort, the World Bank Group has pledged 250 million connections by 2030. Together, these commitments aim to close Africa’s energy gap while transforming lives.

AfDB’s energy portfolio includes flagship projects such as Kenya’s Lake Turkana Wind Power Project, which added 310 megawatts to the national grid, and the Desert to Power (D2P) initiative, which seeks to transform the Sahel into a solar energy hub. Recent successes under D2P include a US$302.9mn loan to co-finance a solar power plant and interconnection project between Mauritania and Mali, benefiting 100,000 households.

The summit will also highlight energy sector achievements, promote collaboration to accelerate infrastructure investments, and strengthen regional power planning and trade. These efforts align with Africa’s Continental Master Plan and the African Single Electricity Market, both of which aim to streamline energy policies and promote cross-border energy sharing.

Collaborative investments

Global partners are already stepping up. The Global Energy Alliance for People and Planet, alongside The Rockefeller Foundation, has pledged US$10mn for technical assistance on electricity projects across 11 African nations. These efforts will address energy needs in diverse locations, from Nigeria’s urban centers to Madagascar’s remote villages.

World Bank group president Ajay Banga emphasised, “We need action from governments, financing from multilateral development banks, and investment from the private sector.”

More than infrastructure

Mission 300 is about more than just building energy infrastructure. For millions of Africans who have never experienced reliable electricity, it represents hope and transformation. The partnerships forged and commitments made in Dar es Salaam will pave the way for an electrification revolution, driving sustainable development and improving lives across the continent.

As leaders and changemakers gather in Tanzania, they will lay the groundwork for a brighter future—one where Africa’s energy aspirations become a reality, and the dream of universal electricity access is no longer out of reach.

Siemens integrates 950,000 smart meters in Ghana, transforming electricity management and winning 'Best Company in Digital Transformation & Innovation.' (Image source: Siemens)

Siemens achieves integration of 950,000 smart meters in Ghana, revolutionising electricity management, enhancing customer experience, and earning the 'Best Company in Digital Transformation & Innovation' award at the Africa Best Business Awards

This cutting-edge solution is transforming electricity management and advancing digitalisation for the state utility, positively impacting more than 4 million users.

Recognising its pivotal role in driving digital transformation in the region, Siemens was recently awarded the title of 'Best Company in Digital Transformation & Innovation' at the Africa Best Business Awards in Ghana. The smart metering solution, developed for the Electricity Company of Ghana (ECG), digitalizes utility operations from backend systems to consumer interactions, ensuring efficient electricity delivery to 3 million meters serving homes and businesses.

“We’re incredibly proud of this solution and this award, which acknowledges Siemens’ strategic role in transforming Ghana’s economy into a highly efficient digital economy. Through our focus on digitalization, electrification, and automation, Siemens is driving impactful change in the region,” says Kofi Oppong, Siemens Regional Manager, West Africa.

Advantages of the Siemens ECG Metering Management System

“The ECG Metering Management System is a game-changer for the utility, eliminating inefficiencies, solving revenue collection challenges, and ensuring customers across Ghana benefit from digitalisation,” commented Oppong.

The system introduces exceptional customer service features, allowing users to activate electricity automatically after purchasing tokens through Mobile Money wallets. This eliminates the need to manually input codes at home and enables family members abroad to purchase and activate tokens remotely. By providing users greater control over expenses and reducing the risks of service interruptions or blacklisting, the system significantly enhances the customer experience.

On an operational level, Siemens’ solution unifies previously fragmented platforms, enabling smart meters from different manufacturers to function seamlessly under a single universal backend. “Siemens’ solution enables interoperability within the utility’s ecosystem, providing a fully digitalised system with a clear view of customer data,” says Oppong. This transparency improves analytics, forecasting, network optimisation, troubleshooting, and fraud detection.

Progress update

Now in its fourth year of operation, Siemens’ Grid Software Solution has delivered outstanding results, including the integration of 950,000 smart meters, improved revenue collection, enhanced customer satisfaction, and reduced operational and staffing costs. Siemens continues to offer maintenance support, ensuring the sustained success of this transformative project.

A new renewable energy platform supported by the African Development Bank and partners will serve nearly 70,000 households. (Image source: African Development Bank)

PowerGen Renewable Energy (PowerGen) has joined forces with leading international investors to create a scalable, distributed renewable energy platform. The initiative aims to deploy 120MW of renewable power, including battery energy storage solutions, across Africa

The platform is a collaboration between PowerGen and prominent organisations such as the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company (via its EU-funded Electrification Financing Initiative, ElectriFi), and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA). PIDG’s anchor commitment was made through its investment arm, InfraCo, supported by concessional capital from PIDG Technical Assistance.

Managed by the African Development Bank, SEFA is a multi-donor special fund providing catalytic finance to stimulate private-sector investments in renewable energy and energy efficiency.

Leveraging PowerGen’s 13+ years of experience in African projects, the funds will enable the deployment of a 120 MW portfolio, comprising renewable mini-/metro-grids and commercial and industrial (C&I) power solutions with integrated battery storage. Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), the platform is set to expand regionally by tapping into PowerGen’s extensive pipeline and fostering partnerships with local developers and EPCs. This platform approach is expected to accelerate efforts to connect the 570 million people in sub-Saharan Africa who currently lack electricity, as per IRENA data.

The first transaction closure in January 2025 will pave the way for additional equity and debt finance later this year. PowerGen, a Power Africa private sector partner, previously benefited from technical assistance and funding for ElectriFi and SEFA from the U.S. government-led Power Africa initiative.

Claire Jarratt, PIDG’s head of investment management for InfraCo, stated, “PIDG has worked with PowerGen for a number of years in Sierra Leone, and we are confident in their ability to develop, deliver and operate high-quality distributed energy infrastructure in challenging conditions. We are therefore delighted to anchor this new investment. We are pleased to be working with partners to support PowerGen to expand its offering across sub-Saharan Africa at a platform scale that has the potential to be truly transformational.”

Luke Foley, PIDG deputy head of technical assistance, added, “This investment epitomises the PIDG mandate. It builds on PIDG’s innovative use of its blended finance tools and reinforces its dedication to support the deployment of sustainable energy solutions, which are key to both combating climate change and fostering economic resilience in the region.”

Henrik Henriksen, IFU investment director, commented, “There is a tremendous need for enabling access to clean energy that can assist underserved households and businesses in Africa to become more resilient to climate change and to provide them with opportunities for better living conditions without further increasing greenhouse gas emissions. Therefore, we are very proud to be a part of a joint investment enabling PowerGen to develop sustainable off-grid power solutions in sub-Saharan Africa. This aligns with our increased focus on supporting Africa’s transition to be more climate resilient.”

Dr Daniel Schroth, director of renewable energy and Energy Efficiency at the African Development Bank, stated, “The African Development Bank’s contribution to PowerGen’s platform reflects our commitment to catalysing private investment in sustainable infrastructure and energy access in line with the objectives of Mission 300. This project will bring electricity to underserved areas in Nigeria, Sierra Leone, and the DRC, and generate significant economic activity and create numerous employment opportunities. It’s an excellent example of our strategy to drive development through targeted partnerships.”

With this funding secured, PowerGen is poised to serve the energy needs of over 68,000 households and reduce power costs for 7,000 businesses. The enhanced electricity access is expected to boost business productivity, generate indirect jobs, and stimulate economic growth.