Power transmission: Africa's biggest energy challenge and opportunity
While most African countries have invested heavily in power generation capacity over the past decade, investments in transmission systems to move the electricity where it is needed have not kept pace.
Inadequate transmission system capacity is the primary obstacle in Africa's energy sector, according to Timothy Mgaya, deputy managing director of distribution at Tanzania's Electricity Supply Company (TANESCO). During a panel discussion at the Infra for Africa Forum, Mgaya highlighted that the lack of sufficient investment in transmission has prevented the full utilization of the country's generating assets.
The main focus now, he said, is to strengthen the grid to unlock the maximum value from these assets. To achieve this, TANESCO is constructing substations and associated transmission lines across major cities and districts, ensuring reliable power supply to consumers and other productive sectors. Additionally, the company is undertaking a transmission rehabilitation program to upgrade and modernize older substations.
Pakinam Kafafi, CEO of TAQA Arabia, emphasized that increased investment in transmission and distribution infrastructure is crucial to make more generation projects bankable. Many investors are willing to finance new generation capacity but hesitate due to the absence of adequate infrastructure to transmit the produced power. With limited fiscal space, Kafafi suggested that the private sector can play a more significant role in grid development.
While no independent transmission projects exist in Africa currently, several governments have shown openness to this model. Kenya, for instance, recently signed an agreement with Africa50 and India's Power Grid to build two high-voltage transmission lines in the country.
Kafafi stressed that for the private sector to become more involved in power transmission and distribution, governments must provide clear, stable, and long-term policies. Investors need certainty about the government's short, medium, and long-term plans, including visibility and a clear strategy. In Uganda, Judith Ssengendo, director of technical planning for the Electricity Regulatory Authority, revealed that the government is opening up power transmission to private investors for the first time, driven by fiscal considerations.
The government has amended the Electricity Act to allow private participation in transmission and is providing a stable regulatory framework and project pipelines to attract private investors. Uganda has already licensed its first independent power transmission (IPT) project, with groundbreaking taking place on July 2, 2026.
Kipkemoi Kibias, acting managing director of the Kenya Electricity Transmission Company (KETRACO), shared that Kenya was the first in Africa to sign a public-private partnership (PPP) agreement for a transmission line. The utility began exploring private partnerships for transmission infrastructure in 2018 but only signed its first IPT agreement in December 2025 due to the lack of proper institutional and contractual frameworks.
Kibias highlighted the importance of reassuring private investors about mitigating political risks, especially as these projects span different political and electoral cycles.
Lioko Sitali, director of transmission, operations, and trade at ZESCO, Zambia's national utility, stressed the need to invest in cross-border interconnectors to support regional power trade. He noted that the power produced must cross borders, and investments in interconnectors must go hand in hand with strengthening national transmission systems.
Sitali also called for investments in power storage, which is crucial given the increasing supply of renewable energy. The Southern African Power Pool (SAPP), of which 12 members are national utilities, has seen the private sector emerge as a key player over the years. SAPP now has 28 members, with political support enabling the inclusion of independent players in the region's electricity markets.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.