Private capital powers the continent’s most remote corners

From the newsletter

The Mauritanian government has signed a landmark agreement to build the country’s first hybrid renewable power plant, combining 160 MW of solar, 60 MW of wind and 370 MWh of battery energy storage system. This will be the largest project ever undertaken in the country, with its capacity nearly equal to half of its total current installed power.

• This public-private partnership (PPP) shows how even cash-strapped governments are able to accelerate the adoption of renewables in Africa.

• The project will power hundreds of thousands of households, marking a big step toward Mauritania’s goal of achieving universal electrification by 2030.

More details

• Ewa Green Energy will build, operate, and manage the facility for 15 years before transferring ownership to the government. The state utility, SOMELEC, will purchase the electricity generated. The arrangement is designed to attract private capital and expertise while avoiding the build-up of external debt, a major concern for Mauritania and many other African countries.

• The project aligns with the National Energy Pact, part of the wider Mission 300 initiative. Under this framework, Mauritania plans to provide electricity access to an additional 3.4 million people by 2030, raising national coverage from 55% today to universal access. The share of renewables in the energy mix is targeted to reach 70% within the same timeframe, while total installed capacity is expected to increase by two-thirds.

• Across Africa, renewable energy projects face high risk premiums, heavy upfront capital requirements, and limited fiscal space. For many governments, external debt pressures make traditional borrowing less attractive, which is why PPPs are gaining traction. Kenya and South Africa, for example, are using PPPs to finance large and expensive transmission projects.

• For Mauritania, there has been strong investor interest in its renewable energy sector, including hydrogen. Since the start of 2025, the country has secured more than $2.5 billion in funding and investment commitments. The most recent was a $2 billion pledge by the Arab Coordination Group to invest in sectors including water, energy, transport, and digital infrastructure.

• Mauritania’s ambitions extend beyond domestic electrification. Authorities are positioning the country as a potential exporter of renewable energy and green hydrogen. With vast solar and wind resources, Mauritania is well placed to generate low-cost clean power. Companies such as GreenGo Energy have already signed agreements to develop large-scale hydrogen projects, with operations expected as early as 2029.

• While the planned hybrid renewable energy plant will primarily serve the country’s electrification efforts rather than hydrogen production, the national utility must remain cautious. It will need to ensure profitability and reinvest in building transmission infrastructure. This will allow for immediate power transfer, ensuring that investors can generate revenue as soon as projects are completed.

Our take

• Reaching 100% electricity access by 2030 should go beyond lighting homes. It must also power businesses, agriculture, and industries. Policies should actively promote the productive use of electricity to create jobs and drive economic growth alongside household electrification.

• Transmission infrastructure should be integrated into all major projects, especially greenfield developments located far from existing power lines. This will ensure that new capacity can be delivered efficiently to where it is needed.

• Mauritania needs clear and stable policy frameworks that protect projects from frequent changes during political transitions. Such consistency is essential to build long-term investor confidence and secure sustained capital inflows.