Africa’s Grid Challenge Webinar: Africa’s Power Trade Held Back by Grid Gaps

Electricity shortages in Southern Africa are not simply a question of how much power countries can generate. Limited cross-border transmission infrastructure can prevent available electricity from reaching neighbouring markets that need it, highlighting a critical gap in the region’s energy system.

The challenge featured prominently during Resq Energy Hub’s webinar, “Africa’s Grid Challenge: The Missing Link in the Energy Transition”, held on 15 October. Energy-sector professionals discussed how investment in transmission networks, regional interconnections and electricity markets could help countries make better use of available resources.

Regional Grid Gaps Constrain Africa’s Power Trade

Agnelli Kafuwe, Senior Energy Officer at Zambia’s Ministry of Energy, highlighted the constraints facing regional electricity trade, citing Angola as an example.

“Angola has excess power, but they cannot sell it to the Southern African Power Pool because they’re not yet interconnected,” he said.

Kafuwe also cited excess electricity in Angola alongside supply challenges in Zimbabwe, Zambia, Botswana and Namibia. The example illustrates how inadequate transmission links can limit the movement of electricity between markets, even where opportunities for cross-border trade exist.

Stronger interconnections could allow countries to complement their domestic generation capacity, improve supply options and reduce the risk of available electricity going unused. However, realising these benefits will require coordinated infrastructure planning, sufficient transmission capacity and effective regional market arrangements.

Regional Grids Require Coordinated Investment

Nick Hedley, Lead Analyst at GridTwin ZA, argued that countries should plan their electricity systems collaboratively rather than treating national grids in isolation.

“We definitely don’t lack the resources to be fully self-sufficient. We have some of the world’s best wind and solar and hydro and coal in South Africa and gas in other parts of the continent. We have it all. We could and should be fully self-reliant,” he said.

Hedley highlighted the potential for interconnected power systems to support electricity trading and improve the use of existing resources. Coordinating national energy plans with neighbouring countries could also help identify shared infrastructure needs and opportunities to strengthen regional supply.

But expanding transmission networks and connecting electricity markets requires substantial, long-term investment. Governments, development finance institutions (DFIs), private investors and institutional funds all have a potential role in financing infrastructure, storage and generation projects.

The discussion also highlighted blended finance as a mechanism for distributing investment risks and improving project bankability, potentially making energy infrastructure more attractive to private capital.

Innocent Mupazi, Country Manager at Energy First Services, stressed the importance of patient capital and financing arrangements that accommodate the long-term nature of infrastructure development.

“The most brilliant ideas appear vulnerable when you borrow or get investment that is going to choke you in terms of the payback,” he said.

Beyond financing, panellists emphasised the need for stronger regional electricity markets and compatible policies and regulations to facilitate cross-border power trading. Infrastructure development must be supported by arrangements that enable countries to buy and sell electricity efficiently.

The discussion underscored a central challenge for Africa’s energy transition: expanding generation alone will not resolve supply constraints if transmission networks and regional markets cannot deliver electricity where it is needed.

For Southern Africa, stronger grid connections, sustainable financing and regional cooperation could help improve energy security, support industrial development and expand access to reliable electricity.

The webinar forms part of Resq Energy Hub’s efforts to foster informed conversations on the challenges and opportunities shaping Africa’s energy future.

Watch the full webinar recording below.