Ethiopia and UK Sign $400M Green Energy Deal

Nearly half of Ethiopia's population still lives without electricity, but that's about to change thanks to a groundbreaking partnership that just brought $400 million in green energy investment to the nation.

Ethiopia and the United Kingdom signed three major cooperation agreements this week aimed at transforming the country's power infrastructure and economic systems. The centerpiece is a deal with Gridworks, a UK government investor, to build Ethiopia's first privately financed transmission projects.

The partnership will create two critical transmission lines totaling over 400 kilometers. One line will connect Ethiopia's Somali region to the central grid, while another will link the northeast to vast untapped wind and solar resources. Both projects will improve power reliability for growing industries and bring electricity to rural communities for the first time.

Finance Minister Ahmed Shide emphasized the urgent need, explaining that Ethiopia aims to connect 96% of its citizens to electricity and increase power availability to nearly 20 gigawatts by 2030. The country's industries are growing fast, and reliable power is essential to sustain that momentum while lifting millions of households out of energy poverty.

The new transmission lines will also strengthen Ethiopia's connection with neighboring Djibouti, opening doors for regional energy trade. This aligns with Mission 300, an ambitious initiative to bring electricity to 650 million people across Africa who currently lack access.

Beyond energy, the UK committed £17.5 million to help Ethiopia strengthen its public investment and asset management systems through 2029. This technical assistance will support the country's economic reform agenda and create better conditions for private sector growth and exports.

The Ripple Effect

These agreements represent more than infrastructure. They're unlocking Ethiopia's enormous renewable energy potential while proving that private investment can work in sectors traditionally controlled by governments. The projects will create jobs during construction, power new industries, and give millions of families their first chance to flip a light switch at home.

UK Ambassador Darren Welch called the partnership a demonstration of Britain's commitment to supporting growth and renewable energy development in Ethiopia. Gridworks CEO Chris Flavin noted the projects are central to Ethiopia's national development goals and will help the country become a regional energy leader.

The collaboration shows how international partnerships can accelerate progress on some of Africa's biggest challenges, from energy poverty to climate change.

Ethiopia's power transformation is just beginning, and millions of lives are about to get brighter.