How a Single Electricity Market Will Empower Africa’s People and Economies
For millions of Africans, the flick of a light switch is not a given, but a daily uncertainty. In rural clinics, midwives deliver babies by torchlight. In bustling cities, businesses grind to a halt during rolling blackouts. For students, the lack of electricity means lost hours of study and stunted dreams.
Over 600 million Africans live without electricity, and more than a billion lack access to clean cooking fuels. The economic toll is immense, with the continent losing between 2% and 4% of its GDP every year to energy deficits. Yet, Africa is home to some of the world’s richest renewable resources—solar, wind, hydro, and geothermal—enough to power its future many times over
However, a new continental push—the African Single Electricity Market (AfSEM)—promises a paradigm shift.
AfSEM’s vision is to connect these resources, bridging national grids and harmonising policies so that power can flow where it is needed most. The integration of the Kenya–Tanzania Power Interconnection Line, which now links the grids of Kenya, Tanzania, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo, is a vivid example of this vision in action.
By 2027, the East African and Southern African power pools will be linked, unlocking new opportunities for cross-border electricity trade and regional economic growth.
A Continental Vision for Power
AfSEM, a flagship of the African Union’s Agenda 2063, aims to transform Africa’s patchwork of national grids and isolated power markets into a single, integrated, and competitive electricity market. The disparities are stark: while some AU Member States enjoy electrification rates above 90%, others struggle below 19%1. This uneven access, besides being a technical issue, is also a barrier to social progress and economic empowerment.
Key to AfSEM’s strategy is market de-risking—deploying regulatory reforms and financial instruments to attract private capital. The African Development Bank, for instance, is supporting over 10,000 km of new transmission lines and pioneering risk mitigation tools such as Partial Risk and Credit Guarantees, aiming to make Africa’s power markets more attractive to investors
The AfSEM initiative, guided by the newly launched High-Level Technical Oversight Committee, is designed to bridge these gaps by connecting regional grids for cross-border electricity trade, harmonising policies and regulations to create a seamless investment environment, mobilising public and private capital for infrastructure and renewable energy projects and promoting sustainable energy to support Africa’s green industrialization and climate goals.
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From Darkness to Opportunity
For the average African household, the stakes are profound. Reliable electricity means children can study after sunset, families can refrigerate food and medicine, and entrepreneurs can power small businesses. In rural clinics, it means life-saving equipment functions without interruption. In schools, it means students can access digital learning resources. For women and girls, who often bear the burden of collecting firewood, electrification offers time for education and economic participation.
Economic empowerment is equally dramatic. Small and medium-sized enterprises—the backbone of African economies—depend on affordable, stable power to grow and create jobs. With electricity deficits costing the continent up to 4% of GDP annually, AfSEM’s success could unlock billions in lost productivity and fuel new waves of industrialisation.
AfSEM’s approach is rooted in data and best practices. By leveraging the technical backbone of the Continental Power System Master Plan (CMP), the initiative identifies priority interconnections and renewable energy projects to maximise impact.
The market’s design also includes mechanisms to de-risk investment, such as harmonised tariffs, grid code alignment, and transparent regulatory frameworks. These steps are critical to attracting the billions needed from both public and private investors to build new transmission lines, expand renewable energy capacity, and modernise utilities.
A Platform for Inclusive Growth
AfSEM is not just about megawatts and infrastructure—it is about people. By strengthening regulatory institutions, aligning energy strategies with the African Continental Free Trade Area (AfCFTA), and promoting green jobs through renewable energy manufacturing and deployment, the initiative is laying the groundwork for inclusive, sustainable growth.
The two-day High-Level Technical Meeting in Addis Ababa brought together Member States, regional power pools, regulators, and development partners to refine these strategies and validate a shared roadmap. This resulted in a harmonised, actionable plan to accelerate electrification, boost investment, and ensure that no African is left in the dark.
As the continent’s leaders and technical experts chart the course for AfSEM’s rollout, the vision of a unified electricity market that powers Africa’s homes, schools, businesses, and industries is apt, especially for West Africa, particularly Nigeria. For millions, it means the difference between opportunity and hardship, between potential and limitation.
With the groundwork now laid and political will galvanised, Africa stands on the brink of an energy revolution—one that will light up lives, drive economies, and empower generations to come.
