A new $1.3 billion fund has been launched by the Southern African Power Pool (SAPP) and investment advisors Climate Fund Managers to construct high-voltage transmission lines connecting countries in the region. The Regional Transmission Infrastructure Financing Facility (RTIFF) kicks off with $20 million commitments from SAPP and targets a first close of $500 million by 2025 to address a major obstacle hindering growth in the evolving energy sector.

Funds will be sourced from both public and private sector investors locally and internationally, aiming to overcome the lack of connections between countries within SAPP's 12 members, including South Africa and Zambia. Victor Mapani, chairperson of the SAPP executive committee, highlighted that the RTIFF facilitates private sector collaboration with public utilities to deploy new transmission lines efficiently.

The facility, expected to operate for 20 to 25 years, aims to achieve a final close of $1.3 billion within two years. A push towards renewable energy, such as wind, solar, and hydro, underscores the need for improved connectivity across the region, where projects in remote areas often struggle to link to national grids.

SAPP aims to connect Angola, Malawi, and Tanzania to the platform, identifying eight priority transmission projects. Stephen Dihwa, executive director of SAPP, noted the importance of connecting Angola to Namibia, estimating the Angola-Namibia interconnector at $356 million, a fraction of the total investment needed by 2040 for enhanced regional integration.

Meanwhile, South Africa's Eskom, facing severe electricity shortages, seeks private sector investment to upgrade its transmission network, requiring approximately $18.41 billion over the next decade. Amit Mohan, head of private credit at CFM, emphasized the urgent need for investment in grid infrastructure to address ongoing blackouts in Southern Africa.