The Southern African Power Pool (SAPP) and Climate Fund Managers have launched a USD1.3bn fund called the Regional Transmission Infrastructure Financing Facility (RTIFF) to build high-voltage transmission lines connecting countries in the region, as reported by Reuters on March 5. The fund aims to overcome the obstacle of limited connectivity hindering the growth of the energy sector in Southern Africa. Initial commitments of USD20m from SAPP will kickstart the fund, with a target of reaching USD500m by 2025. The remaining finance will be sourced from public and private sector investors globally and locally. Lack of connectivity between countries has impeded energy integration and trade within SAPP’s 12 member countries.

RTIFF seeks to bridge this gap by enabling collaboration between the private sector and public utilities to deploy new transmission lines efficiently. The fund is expected to reach a final close of USD1.3bn within two years and will have a lifespan of 20 to 25 years. The push for renewable energy, including wind, solar, and hydro, has underscored the need for improved regional connections, especially for projects in remote areas. SAPP aims to connect Angola, Malawi, and Tanzania to the electricity market, prioritizing eight transmission projects. Notably, the connection between Angola and Namibia is identified as a key project, estimated to cost USD356m. South Africa’s Eskom, facing significant debt and electricity shortages, is seeking private sector investment to upgrade its transmission network and alleviate blackouts. Overall, the RTIFF initiative represents a significant step towards enhancing regional integration and addressing energy challenges in Southern Africa.

Fuentes:

https://www.reuters.com/sustainability/sustainable-finance-reporting/new-13-bln-energy-fund-transmission-links-across-southern-africa-2024-03-05