Ethiopia receives US $104M financing for energy boost

The government of Ethiopia has announced a receipt of US $104M in financing from the Economic Development Cooperation Fund (EDCF) of Korea and the African Development Bank (AfDB) to boost power supply in the country.

The primary objective of this funding is to improve electricity transmission in the eastern part of Ethiopia. This will involve the installation of 157 kilometers of 400-kilovolt double-circuit transmission lines and the construction of substations in Harar, Jijiga, and Fafem.

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Adressing energy challenges

Strengthening electricity transmission in the eastern region is seen as a driver for development. It aims to address power failures and load shedding, connect more industries and households to the electricity grid, and reduce reliance on diesel generators for electricity supply.

The availability of reliable electricity is expected to support the implementation of the Regional Agricultural Irrigation Programme, which aims to deploy irrigation systems on a significant amount of farmland in a region affected by drought. This will enhance agricultural productivity and food security.

Ethiopia has ambitions to become an energy powerhouse in East Africa. The country is already exporting electricity to Djibouti and has plans for major infrastructure projects like the Great Ethiopian Renaissance Dam (GERD), which will have a substantial capacity of 5,250 MW. This capacity can support not only domestic needs but also potentially allow for electricity exports to neighboring countries, such as Somalia, which lacks a unified electricity network due to ongoing conflicts.