AfDB and Swedfund to promote private sector participation in power transmission in Africa

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The African Development Bank Group (AfDB) and Swedfund International AB (Swedfund) have formalized a collaboration agreement to promote private sector participation in independent power transmission line projects in Africa, mainly through public-private partnerships.

The AfDB and Swedfund aim to encourage reforms in African states, mainly through project preparation and advisory support that should lead to an increase in private sector investment and PPP projects. The partnership is supported by the New Deal on Energy for Africa and the Bank’s High 5 strategic priorities, specifically, Light Up and Power Africa. 

The energy sector, especially the transmission infrastructure, requires significant investment for its development, which cannot be achieved solely by governments. Transmission infrastructure, which has historically been a public monopoly, suffered from a lack of investments, especially compared to those in privately financed independent power production projects. The collaboration will focus on identifying suitable priority projects and developing a portfolio of bankable transmission line projects. 

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