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UK to invest £350 million to develop Ethiopia’s grid network
- 3 hours ago (2026-02-04)
- David Flin
The UK investor Gridworks has signed agreements to develop and finance around £350 million in electricity transmission projects in Ethiopia. The projects are the first public-private partnerships in Ethiopia’s transmission sector.
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One of the projects will connect Ethiopia’s Somali region to the central and northeastern power grids, improving access in these areas.
A second project will enable development of wind and solar power plants in the northeast and strengthen electricity interconnections with neighbouring Djibouti.
Ahmed Shide, Ethiopia’s Finance Minister, said that the projects will bolster industrial growth by making electricity supply more reliable. He added that they would accelerate electrification for millions of households.
Despite Ethiopia’s expanding power generation capacity, including electricity generated by the Grand Ethiopian Renaissance Dam (GERD), the country faces challenges in delivering power efficiently to users. The constraint lies largely in transmission infrastructure, with grid limitations preventing electricity flowing seamlessly from production centres to industrial zones and remote regions.