Keypoints:
- First public–private partnerships for Ethiopia’s grid
- New lines unlock wind and solar in the northeast
- Deal tied to jobs and migration reduction
IN a move that blends climate ambition with geopolitics, Britain has stepped deep into Ethiopia’s electricity backbone, backing two major transmission projects that could reshape how power moves across the Horn of Africa’s second most populous country. The deals were signed in Addis Ababa during a visit by UK foreign secretary Yvette Cooper and fronted by Gridworks, the British government-owned investor in African power networks.
As first reported by Reuters, the agreements amount to roughly $400 million in investment and mark the first public–private partnerships in Ethiopia’s national transmission system, signalling a structural shift in how the Abiy Ahmed government is opening its state-dominated economy while London seeks to link development, jobs and migration policy.
First ever transmission PPPs
For decades, Ethiopia’s high-voltage grid has been entirely state-run, even as the country built one of Africa’s largest hydropower fleets along the Nile basin. Under the new model, Gridworks will co-develop and co-finance two strategic corridors with Ethiopian authorities, bringing private capital and project management into a domain long treated as sovereign infrastructure.
The first line will connect the eastern Somali region to central and north-eastern grids that have historically operated in silos. The second will strengthen transmission across the north-east, creating the backbone needed for large-scale wind and solar farms while reinforcing links with neighbouring Djibouti.
In a joint statement with the Ethiopian government, British ambassador Darren Welch said: ‘Transmission infrastructure is fundamental to growth, jobs and improving lives, and these projects will help unlock Ethiopia’s vast renewable energy potential.’
Renewables, industry and homes
Ethiopia already produces significant hydropower, yet weak transmission has frequently stranded electricity far from factories, cities and rural communities. Rolling blackouts remain common, and manufacturers often rely on costly back-up generators.
Finance minister Ahmed Shide said the new lines would make power supply more reliable for industry, supporting job creation and export growth. He also stressed that nearly half of Ethiopian households are still waiting for their first grid connection, a gap that has slowed digital inclusion, health services and small enterprise development.
By clearing bottlenecks in the north-east, the projects are expected to accelerate the deployment of wind and solar at scale, diversifying Ethiopia’s energy mix and reducing seasonal vulnerability when water levels fluctuate.
Migration politics in London
Cooper’s trip was about more than megawatts. Britain has made clear that economic opportunity in the Horn of Africa is central to reducing dangerous migration routes toward Europe.
According to the UK foreign ministry, around thirty percent of people who crossed the English Channel in small boats over the past two years came from Ethiopia, Eritrea, Somalia and Sudan. London argues that reliable electricity can catalyse factories, skills and stability – conditions that could lessen the pressure to migrate.
The strategy also plays into domestic politics, where immigration has become a defining issue and has helped lift Nigel Farage’s Reform UK party in opinion polls.
Technical help alongside capital
Beyond the transmission deals, Britain pledged up to £17.5 million in technical assistance to strengthen Ethiopia’s systems for public investment and asset management. Officials say better project appraisal, budgeting and maintenance will ensure that new infrastructure delivers long-term value rather than becoming a fiscal liability.
A regional template?
If the partnerships succeed, they could set a precedent for similar models across East Africa, linking renewable-rich hinterlands to urban demand centres and export corridors. For Ethiopia, the stakes are high: dependable electricity is now as critical as roads, ports or telecoms.
For the UK, the gamble is strategic – that clean power, jobs and stability abroad can translate into fewer perilous journeys toward its shores.
