Rwanda has ruled out opening its electricity transmission and distribution networks to private investors, setting it apart from neighbouring Kenya and Uganda, which are increasingly turning to public-private partnerships (PPPs) to expand power infrastructure and improve energy access.
Kigali will continue allowing private companies to invest in electricity generation, including through partnerships and independent power producer (IPP) arrangements, but transmission and distribution infrastructure will remain fully controlled by the state.
The decision contrasts with a growing regional shift toward private participation in electricity networks as governments across Africa seek new sources of funding to close major energy access gaps by 2030.
Electricity transmission and distribution have traditionally been dominated by state-owned utilities across Africa, but limited public financing has pushed many countries to explore private capital for grid expansion and upgrades.
Rwanda estimates it will require up to US$3 billion to achieve universal electricity access by 2030, with about $922 million expected from private investment. However, none of that private funding will be directed toward transmission or distribution.
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Claver Gukwavu, acting managing director of Energy Utility Corporation Limited (EUCL), said the government’s decision was aimed at keeping electricity affordable for consumers.
“This was intentional on the side of the government. We cannot have the private sector in everything, energy prices will be too expensive for Rwandans to afford,” he told The EastAfrican.
Under Rwanda’s energy plan, electricity generation will require up to US$1.1 billion in investment, with about $801 million, or 73%, expected from private sector players.
By contrast, the government plans to fully finance investments in transmission, estimated at US$215 million, distribution at US$381 million, regional power interconnections at US$198 million and household grid connections at US$491 million.
Kenya and Uganda pursue private-sector expansion
Uganda has taken a different approach, seeking greater private sector involvement across the electricity value chain.
Kampala aims to increase electricity access from about 60 percent of the population to 85 percent by 2030 and estimates it will need US$17.7 billion in investment.
Unlike Rwanda, Uganda expects private investors to contribute significantly across generation, transmission and distribution. Private companies are expected to provide US$6.5 billion of the US$9.8 billion needed for power generation, as well as hundreds of millions of dollars for transmission and distribution projects.
Uganda’s Energy and Mineral Development Minister Monica Musenero said private participation was necessary to accelerate electrification.
She argued that strong regulation would prevent higher costs for consumers while allowing investors to earn returns.
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Kenya is also advancing private investment in power infrastructure. The country is developing independent power transmission projects, including the Lessos-Loosuk and Kisumu-Musaga transmission lines, with support from Africa50 and Power Grid Corporation of India.
Uganda’s Amari independent power transmission project, developed by US firm Gridworks, reached financial close in March.
Africa’s energy financing challenge
Across Africa, governments are increasingly relying on private capital to expand electricity access as public budgets remain under pressure.
The Central African Republic, for example, plans to attract up to US$600 million in private investment into its energy sector by 2030, representing about 30 percent of its financing needs.
Marc Mandaba, the country’s economy minister, said private investment was necessary but acknowledged challenges, including lengthy negotiations and investor demands.
The debate reflects a broader policy divide across Africa: whether private sector participation can accelerate electrification or whether state control of critical electricity networks remains the best way to protect affordability and ensure equal access.
Rwanda’s approach prioritises public control of key infrastructure, while Kenya and Uganda are betting that private capital can help close the continent’s persistent energy gap faster.
