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.