Executive Summary
This paper, “Power Transmission Projects in Africa: Key Considerations for Bankability,” examines the critical factors influencing the financial viability and sustainability of power transmission projects across Africa. Despite substantial growth in electricity generation, transmission infrastructure remains underdeveloped, receiving only about 17% of total energy investments. This imbalance creates a bottleneck that hinders reliable power delivery, regional integration, and industrial growth.
The study highlights that to unlock Africa’s energy potential, transmission projects must be made bankable—technically sound, financially viable, and institutionally stable. It explores how early-stage planning, effective financing models, and risk mitigation mechanisms can attract private capital and ensure successful project execution. The paper identifies the Public-Private Partnership (PPP) and Independent Power Transmission (IPT) models as leading frameworks for mobilizing private investment while maintaining government oversight.
Key challenges identified include unpredictable cash flows due to weak utility credit ratings, construction delays from poor feasibility studies, and governance lapses affecting transparency and sustainability. To overcome these barriers, the paper emphasizes predictable revenue structures, robust EPC and O&M frameworks, and adherence to strong Environmental, Social, and Governance (ESG) standards.
Using the Sudan–Ethiopia Transmission Project as a case study, the paper demonstrates how traditional bilateral agreements can stall projects and proposes restructuring into a PPP-based BOOT (Build-Own-Operate-Transfer) model. This approach, supported by sovereign guarantees, multilateral risk coverage, and regional regulatory harmonization, would enable financial close and long-term success.
Ultimately, the paper concludes that Africa’s path to energy reliability and industrial transformation depends on reimagining transmission projects as bankable infrastructure assets. Achieving this requires coordinated action among governments, financiers, and regional power pools to establish transparent regulation, secure financing, and ensure sustainable governance
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The Young African Leaders in Infrastructure Fellowship (YALIF), developed by The African Catalyst, is an 8-week initiative aimed at empowering young leaders to address critical infrastructure gaps across Africa. Targeting professionals aged 22 to 40, the program provides a blend of theoretical knowledge and practical applications through live sessions, project-based learning, and case studies. Participants will explore key topics, including early-stage infrastructure development, financing strategies, sustainability, and risk allocation, ensuring a comprehensive understanding of the infrastructure project lifecycle.
YALIF not only develops individual skills but also positions graduates to influence Africa's infrastructure sector through transformative projects and innovative solutions. By bridging the gap between education and employment, the fellowship prepares its participants for roles in project finance, development consultancy, and governmental planning agencies. Ultimately, YALIF focuses on cultivating a new generation of leaders equipped to tackle the continent's infrastructure challenges while driving sustainable development.
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YALIF Fellow Profile
John Umar
John Umar is a civil engineering graduate driven by a passion for solving infrastructural deficits.
For him, civil engineering goes beyond building and managing projects. It's about identifying the infrastructural gaps and decisions that influence a nation's macroeconomic conditions; understanding how to structure early stage projects, make them bankable and being able to mobilize the financing needed to bring them to life.
His passion lies at the intersection of construction and finance, where I aim to contribute to shaping sustainable infrastructures whether in energy, transport, or social infrastructures.
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Ayomide Wuraola
Ayomide is a dynamic finance and business professional with experience across FMCG, logistics, manufacturing, oil & gas, and fashion. She specialises in turning complex challenges into actionable strategies that drive measurable results. Now expanding into investment banking, venture capital, private equity, and development finance, She is committed to supporting African businesses through strategic advisory and investor connections. Passionate about entrepreneurship, capital mobilisation, and inclusive economic growth, She brings analytical rigor, creativity, and a strong impact-driven mindset to every engagement.
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