Blackouts may become a thing of the past if all goes according to plan. Kenya and Ethiopia are set to benefit from a $684 million loan that will be used to finance a cross-border power line. The World Bank’s Board of Directors gave their approval yesterday citing that the project would be used to reduce the cost of energy.
The project will be spear-headed by the African Development Bank (AfDB), the French Agence Francaise de Developpment (AFD) in conjunction with the governments of Ethiopia and Kenya.
The grid will serve as a source of sustainable energy and strengthen the bonds between the East African Community. A report from the World Bank states that the project will encourage foreign investment, improve East Africa’s infrastructure and create employment while addressing the issue of poverty in the region.
Speaking on behalf of the World Bank, Vice President for the African Region, Makhtar Diop said, “Boosting power sharing between countries is an essential step toward addressing Africa’s needs.”
The grid will enable Ethiopia to sell some of its energy to Kenya. Kenya will also be able to sell to Ethiopia by reversing the flow of electricity. The project will be funded by The International Development Association. Kenya is expected to receive $441 million while Ethiopia will be entitled to $243 million. The Kenya Electricity Transmission Company (KENTRACO) says that the project is at an advanced stage of implementation.