By Enyichukwu Enemanna
British government-owned investor in Africa’s electricity networks, Gridworks, on Monday signed agreements to develop and invest in transmission projects worth $400 million.
The agreements were signed during the visit of Britain’s Foreign Minister, Yvette Cooper to Ethiopia, which formed part of efforts by the UK government to use job creation initiatives to tackle rising numbers of migrants from the Horn of Africa seeking to move to the United Kingdom.
The two projects are the first public-private partnerships in Ethiopia’s transmission network, as Prime Minister Abiy Ahmed’s government is gradually opening up the state-dominated economy to accommodate more private investments.
One of the projects connects Ethiopia’s Somali region with its central and northeast grids, while the other enables the development of wind and solar plants in the northeast and strengthens the interconnection with neighbouring Djibouti.
“Transmission infrastructure is fundamental to growth, jobs and improving lives, and these projects will help unlock Ethiopia’s vast renewable energy potential,” British Ambassador to Ethiopia Darren Welch said in a joint statement issued by the Ethiopian and British governments.
Ethiopia’s Finance Minister Ahmed Shide said the projects would bolster industrial growth by making power supply more reliable.
They will also accelerate electrification for the nearly half of Ethiopian households not yet connected to power grid.
The UK also agreed to provide up to 17.5 million pounds ($23.91 million) in technical assistance under a programme to strengthen Ethiopia’s systems for public investment and asset management.
According to the British foreign ministry, about 30% of people crossing the English Channel on small boats over the past two years were citizens from Ethiopia, Eritrea, Somalia and Sudan.
