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Africa Business News

Africa Biz Construction and Business News

Rwanda and South Africa to Receive US $500M for Power Grid Upgrades

October 17, 2018

The African Development Bank (AfDB) has approved funding of US $500 million to help fund improvements and expansion of the power grids in both Rwanda and South Africa.

For the South African part of the funding, AfDB is providing $217.9 million to the country via the state-owned electricity provider Eskom. $25 million of these funds are from the Africa Growing Together Fund (AGTF), a joint project with the People’s Bank of China.

The money there will be used in part in KwaZulu-Natal and Mpumalanga, to build an estimated 555 kilometers of 400 kV transmission lines. It will also be used in tandem with The Eskom s Project (ETIP), to change out and upgrade substations in Mpumalanga.

The Rwanda monies come in the form of a loan of $266 million. The funds include a direct $192 million loan from the African Development Bank itself, plus a credit of $74 million from the African Development Fund which will be paid out over three years.

In Rwanda, the funds will be used to improve electricity access throughout the country. It will include building out an additional 7,317 kilometer of low-voltage power lines and 795 kilometers of medium-voltage lines. The goal of the project is both to upgrade power delivery reliability while also extending electricity to areas which do not currently have power.


AfDB’s vice president for power, energy, climate change and green growth, Amadou Hott, said the combined programs will provide for over 193,000 new on-grid connections and an estimated 124,000 off-grid connections.

Copyright: North America Procurement Council Inc., PBC