Authored by Kamil Maqsood, Business Analyst at PTR, this report delves into the substantial investment required to upgrade the transmission and distribution (T&D) infrastructure across the region. Public finance and development funds alone are insufficient to meet the sector’s needs, highlighting a pressing requirement for diverse funding sources. Recent years have seen a sharp rise in state debt levels, further constraining fiscal space and limiting government capacity to invest in T&D upgrades. 

State-owned utilities throughout the region are heavily indebted due to operational inefficiencies and widespread power theft. This not only affects their performance but also reduces their creditworthiness, making them less attractive to investors. Additionally, funds traditionally allocated to infrastructure development are now being redirected toward urgent global needs, such as the conflict in Ukraine, further reducing the resources available for T&D improvements. This shortfall underscores the critical role of private sector investment to bridge the gap. However, drawing private capital requires an environment that offers regulatory stability, transparency, and consistent returns on investment. 

 The report presents a strategic pathway with actionable measures to establish such an enabling environment for private sector engagement. Key recommendations include policy reforms, incentives for public-private partnerships, and initiatives to boost grid efficiency—all geared toward creating a sustainable foundation for T&D infrastructure enhancement across the region. 

Follow this link to learn more: African Power Grid: Bridging the T&D Investment Gap with Private Sector Participation 

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