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Private Investment and Digital Grid Technologies are Reshaping Africa's Transmission Sector
Aging grid systems across sub-Saharan Africa lose more than $5 billion worth of power annually through transmission and distribution inefficiencies. Making up the difference will require both private financing models and new digital technologies capable of strengthening grid performance at scale.
These twin imperatives will be addressed through a panel titled ‘PSP in Transmission & Digitalizing Africa's Power Grids’ at Power Africa Today. The dedicated power sector conference runs alongside African Energy Week (AEW) 2026 in Cape Town from October 12-16. The session will bring together policymakers, utilities and investors to examine how new reforms and innovative financing models are enabling private investment in transmission while digital technologies strengthen grid efficiency and accelerate renewable energy integration.
Africa's transmission sector requires between $80 billion and $140 billion in investment through 2040, yet has historically attracted just 0.3% of total African energy financing. Africa installed a record 4.5 GW of solar capacity alone in 2025, and without corresponding grid expansion, new generation assets are at risk of becoming stranded.
Creative investments are being deployed across the continent, exemplified by a new cohort of Independent Transmission Projects (ITPs) that is changing the financing landscape. In Uganda, transmission developer Gridworks broke ground in July 2026 on the $50 million Amari Power Transmission project – the first ITP on the continent to reach financial close and enter construction. Pan-African infrastructure investor Africa50 has closed a parallel landmark in December 2025: a $311 million transmission public-private partnership with the Kenya Electricity Transmission Company (KETRACO) covering two high-voltage lines under a 30-year concession.
“You can build all the generation capacity you want, but if the grid can't move it, you haven't solved the problem,” says NJ Ayuk, Executive Chairman of the African Energy Chamber. “The deals coming out of Kenya and Uganda show that transmission can be structured for private capital. I look forward to seeing regulators across the continent replicate that.”
Market-level reforms are reinforcing these project-level developments. Zimbabwe opened its electricity market to full private participation across generation, transmission and distribution in 2025, targeting approximately $9 billion in new investment. South Africa is also advancing plans to develop 14,500 km of new transmission lines and 133,000 MVA of transformer capacity by 2034 to integrate renewable energy and improve grid reliability.
Alongside structural reform, digital technologies are reshaping how utilities manage existing networks. Most traditional utilities on the continent are still manually operating analog systems with limited visibility over demand and asset performance. AI-driven forecasting, smart metering and digital substations are now being deployed to reduce losses, improve outage detection and manage the variability that comes with higher renewable energy penetration.
The PSP in Transmission & Digitalizing Africa's Power Grids panel at Power Africa Today will explore the regulatory frameworks, financing structures and technology platforms required to scale these developments across the continent. Register for Power Africa Today at AEW 2026 by visiting www.aecweek-registration.com/2026.