ADDIS ABABA, Feb 3 – Gridworks, a British government-owned investor focused on Africa’s electricity networks, has signed agreements to develop and invest in power transmission projects in Ethiopia valued at around $400 million, officials said on Monday.
The deals were signed during a visit by Britain’s foreign minister to Ethiopia and represent the first public-private partnerships in the country’s transmission network. The projects form part of Prime Minister Abiy Ahmed’s gradual push to open Ethiopia’s state-dominated economy to greater private sector participation.
One of the transmission projects will link Ethiopia’s Somali region with the country’s central and northeast power grids. The second project is designed to support the development of wind and solar plants in the northeast, while also strengthening electricity interconnection with neighboring Djibouti.
British Ambassador to Ethiopia Darren Welch said the investments would help unlock Ethiopia’s renewable energy potential and support economic growth through more reliable electricity supply. Ethiopia’s Finance Minister Ahmed Shide added that the projects would bolster industrial expansion and accelerate electrification, particularly for households still waiting for their first grid connection.
Nearly half of Ethiopian households remain without access to electricity, making transmission upgrades critical to expanding coverage and supporting development goals.
Alongside the power agreements, the UK government committed up to 17.5 million pounds in technical assistance to help strengthen Ethiopia’s public investment and asset management systems.
The visit also reflects broader UK efforts to address migration pressures from the Horn of Africa, a region that has accounted for a significant share of recent irregular migration to the United Kingdom.
