World Bank calls for PPP in Africa’s transmission infrastructure

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The World Bank’s new report, released today, is calling for increased private sector investment in Africa’s under-developed electricity transmission infrastructure, ESI Africa reports.

The report titled, Linking up: Public-Private Partnerships in Power Transmission in Africa, notes electricity transmission infrastructure as a vital ingredient for reaching Africa’s energy goals. The Bank further highlights that alongside generation and distribution, improving and increasing transmission infrastructure is key to closing the access gap.

“So far, transmission in Africa has been financed from public sources and new models of financing involving the private sector have received insufficient attention from policymakers or financiers,” the World Bank stated. The analysis examines private sector-led investments in transmission globally and how this approach is applicable in sub-Saharan Africa.

According to the study, the private sector has participated successfully in transmission networks in many countries in Latin America and Asia, and it is recommended that this approach could be replicated. The use of privately financed transmission lines in Brazil, Chile, Peru and India, for example, collectively raised over $24.5 billion of private investment between 1998 and 2015.