By Dr. Mohamed Alhaj | Founder & Managing Director, Terra Energy
Just under a month ago I had the privilege of speaking at the Fourth Annual Forum for Regional Integration and Reasonable Utilization of the Nile (AFRIRUN IV) in Addis Ababa — an event that brought together a remarkable lineup of experts, policy makers, and energy leaders under the theme: “Regional Power Connectivity for Inclusive and Sustainable Development.” I had the opportunity to present a critical perspective on one of the continent’s greatest paradoxes: immense renewable energy potential coexisting with deep access deficits. Despite growing demand, over 600 million Africans still lack electricity access—a number projected to remain alarmingly high by 2030 if we continue on our current path.
Africa’s power systems are fragmented, underinvested, and overly reliant on fossil fuels. While global attention has been growing, only 2.3% of global energy investments reached Africa in 2023. This undercapitalization is even more pronounced in transmission infrastructure, where less than 0.3% of private sector investment reached Sub-Saharan Africa over a decade.
Yet there’s a transformative opportunity at hand: regional integration.
Africa’s five regional power pools—WAPP, SAPP, EAPP, CAPP, and COMELEC—are designed to connect electricity markets, enable cross-border trade, and stabilize energy systems. A unified African grid could save up to $40 billion in system costs while unlocking large-scale renewable deployment.
But the road to integration is riddled with bottlenecks:
- Fragmented regulations and grid codes
- Political reluctance to cede energy sovereignty
- Incomplete and outdated infrastructure
- Weak utility creditworthiness
- Lack of centralized market mechanisms
To move from vision to execution, we must shift from bilateral exchanges to robust, rules-based power markets. This requires not just hardware (like HVDC lines and smart grids), but also political will, private investments, regulatory coherence, and financial innovation.
In my recommendations, I emphasized six imperatives:
- Harmonize energy rules and accelerate market reforms
- Strengthen regional regulatory bodies and power pools
- Foster energy diplomacy to build trust and political alignment
- Invest in interconnectors and regional control systems
- Leverage storage, digital tech, and smart grids
- De-risk capital flows through credit guarantees and blended finance
Africa does not need to follow the same path as others—we can leapfrog. But doing so will require bold coordination across borders, sectors, and institutions. Integration is not just about energy; it’s about sovereignty, stability, and economic transformation.
As Terra Energy, we remain committed to advancing these solutions—from technical advisory to policy reform—to help the continent turn its vast potential into shared prosperity.
A heartfelt thank you to the Institute of Foreign Affairs (IFA), The Ministry of Foreign Affairs, especially Befekadu Bogale Biru, and the organizers for the seamless event and for inviting me to be part of such an important conversation.
