Kenya, Ethiopia, and Tanzania Plan Three-Way Power Agreement

On Thursday, November 21st, it was reported that Ethiopia, Kenya, and Tanzania are in advanced discussions to finalize a three-way electricity transmission deal. The agreement will see Ethiopia exporting 100 megawatts of electricity to Tanzania via Kenya, addressing power deficits in the region. This initiative highlights the growing energy cooperation in East Africa as countries work to bridge their infrastructure and energy gaps.

The electricity will originate in Sodo, southern Ethiopia, and travel through Suswa, Kenya, before reaching Arusha in northern Tanzania. Tanzania is currently facing a 400-megawatt energy shortfall caused by maintenance issues and climate-related challenges affecting water supplies for hydroelectric generation. This collaboration aims to stabilize Tanzania’s power grid and support its manufacturing sector.

Kenya’s Electricity Transmission Company CEO John Mativo confirmed that agreements have already been signed between Ethiopia and Kenya, as well as Kenya and Tanzania. These arrangements leverage Ethiopia’s expanding power production capabilities, particularly from its growing renewable energy sector, including hydropower. Ethiopia has seen a rise in energy exports, with revenue reaching $140 million in its last fiscal year.

The deal is expected to enhance regional integration and economic growth by providing reliable electricity across borders. For Tanzania, improved energy access will boost industries and household connectivity, addressing long standing challenges in power reliability. Meanwhile, Kenya and Ethiopia will benefit from increased trade revenue and strengthened regional ties.

The agreement also underscores the potential of regional energy markets to reduce dependency on fossil fuels and diversify energy sources. By facilitating cross-border electricity sharing, the partnership sets an example for other regions grappling with energy deficits. Such collaborations are critical as Africa looks to achieve energy security and sustainability amid climate challenges.

As negotiations progress, the three nations aim to implement the plan swiftly to ensure energy stability and economic benefits for their populations. This partnership reflects a broader shift towards regional cooperation in tackling shared development challenges and advancing sustainable growth in Africa.