After years of policy discussion and slow implementation, independent transmission projects, ITPs, are finally gaining traction across sub-Saharan Africa. Recent financial closes and construction milestones suggest that transmission, long considered the weakest link in African power markets, is becoming investable.
Historically, generation has attracted private capital more easily than transmission. Grid infrastructure remained largely state-owned due to regulatory complexity, sovereign risk concerns, and revenue recovery challenges. That dynamic is now shifting.
Key Developments
Uganda and Ethiopia
Projects supported by Gridworks have reached advanced stages, marking some of the first structured independent transmission transactions in the region. In Uganda, the Amari transmission project has moved into implementation following agreements with government and the national utility.
South Africa
Through reforms led by Eskom and the unbundling of transmission operations into the National Transmission Company South Africa, the country has opened space for private participation in grid expansion under a competitive procurement framework.
Kenya and Regional Interconnectors
Transmission PPP structures and cross-border interconnection projects are progressing with support from development finance institutions and regional infrastructure platforms.
Why This Matters
Transmission bottlenecks have constrained renewable integration, stranded generation capacity, and slowed industrial growth. The renewed momentum in ITPs addresses several structural issues:
• Expands grid capacity to absorb new renewable projects
• Improves system reliability and regional power trade
• Reduces fiscal pressure on governments
• Creates a new asset class for long-term infrastructure investors
For investors, transmission offers predictable revenue under availability-based payment models. For governments, it accelerates grid build-out without immediate balance sheet strain.
Investment Signals
Three factors are driving the shift:
-
Stronger regulatory frameworks and clearer cost-recovery models
-
Development finance de-risking through guarantees and blended finance
-
Rising demand for grid infrastructure to support energy transition targets
If sustained, this momentum could unlock billions in transmission investment over the next decade.
Outlook
Independent transmission is moving from pilot concept to structured market segment. The next critical indicators will be:
• Successful construction delivery of early ITPs
• Payment discipline under availability-based contracts
• Replication of frameworks across multiple markets
If these are achieved, Africa’s power sector reform story may finally extend beyond generation into full-system modernization.
