Private sector invited to invest in grids

November 17, 2025

Dear subscriber,

The private sector has driven much of Africa’s renewables growth. Governments now hope to tap the same capital and efficiency to build new power lines. The question is whether this shift can match the success seen in renewables projects.

– Sammy Jamar, Editor

South Africa’s government has set up a credit guarantee vehicle with an initial $116 million to boost large-scale private investment in transmission line expansion. The goal is to ease financial barriers that have slowed new grid connections. The move comes as the country prepares to roll out the first batch of independent transmission projects next year.

  • Transmission infrastructure has largely depended on public funding and utility balance sheets. But this has not kept pace with renewables growth ambitions, forcing many African countries to adopt blended financing models.

  • South Africa has an ambitious plan to build 14,500 km of new transmission lines via independent transmission projects (ITP) over the next decade. Funding of $25.7 billion may be available to the private sector to build and operate lines.

  • Our take: With current grid congestion, developers are likely to focus on hybrid projects that store excess power and feed it into the grid when capacity opens… Read more (2 min)

The Norwegian investment fund for developing countries, Norfund, has invested $75 million in Mulilo, a leading South African renewable energy company. Norfund has been doubling down on renewable energy investments in Africa, helped by recent exits from older projects that freed up capital for reinvestment in new opportunities.

  • In September, Norfund exited the Kenhardt project, South Africa’s first large-scale hybrid solar and battery facility. The exit raised $109.5 million through a new equity partnership between H1 Holdings and Standard Bank.

  • Norfund has a portfolio of $3.8 billion invested across Sub-Saharan Africa, Southeast Asia and Latin America. It also manages the Norwegian Climate Investment Fund, which invests in renewable energy in developing countries.

  • Our take: Expected declines in battery prices could open the door to more investment in hybrid projects… Read more (2 min)

France is expanding its engagement in African renewable energy. Proparco, the French development finance institution, has completed an equity co-investment in a 100 MW Wind farm located in Kenya. Simultaneously, it also signed a financial protocol in Mauritania to fund the construction of 10 solar power stations equipped with storage units.

  • France funds African renewables through the French Development Agency (AFD) and its subsidiary, Proparco, which partners with other financial institutions and private firms to deploy capital across the continent. 

  • Though not all of its African renewable investments have been disclosed, the country has committed at least $184 million in renewables so far in 2025.

  • Our take: The next frontier in African renewables is not generation, but control over storage, grids and regional systems… Read more (2 min)

Globeleq celebrates the financial close and start of construction for the Red Sands BESS plant in Johannesburg, South Africa (Source: Globeleq)

 

Events

🗓️ Attend  the Power & Transmission Baraza in Kenya (Nov 20)

🗓️ Register for the Africa Energy Expo 2025 (Nov 25)

🗓️ Be at the ESG, Impact Investing & Sustainable Finance Summit 2025 (Nov 27)

Jobs

💼 Join Power for All as  a Senior Program Associate - Community (Zambia)

👨🏻‍💻 Become Rubicon’s Cashbook Clerk (South Africa)

👩🏻‍💻 Apply for Sun King’s Area Business Manager role (Malawi)

Various

🌀 Lesotho pitches first-ever wind project to investors

💸 Impact investors allocate €15m to SolarX in new funding round

💡 Aptech Africa brings power to 2,500 households in Sierra Leone

⚡ Axian Energy signs deal for 100-MW solar-storage project in Chad

Seen on LinkedIn 

Joseph Ngotho, Sales Manager at ZTT Group, says, “Decentralised solar charging infrastructure is paramount to building the necessary energy foundation for Kenya's industrialisation goals, which require a minimum of 10,000 MW of energy.”