Although only 10% of the African continent’s technical hydropower potential has currently been harnessed, development is picking up pace with the sector delivering 20% of electricity from 43.5GW of its total installed hydropower capacity. And as a new wave of hydropower projects begin to emerge, with many of them led by private developers, the International Hydropower Association says they offer hope that hydro will help to power the region’s clean energy transition.
Leading the swell of activity is the Grand Ethiopian Renaissance Dam (GERD). It’s the largest hydropower project ever built in Africa and was commissioned by Ethiopian Electric Power, designed and constructed by Webuild, and inaugurated in September 2025.
Described as being of an extraordinary scale and unprecedented engineering complexity, it’s even been slated as one of the world’s most ambitious and advanced infrastructure projects in recent years.
Located approximately 700km north-west of the Ethiopian capital city of Addis Ababa, in the Benishangul-Gumaz region along the Blue Nile, GERD is 1800m long and 170m high. With a total RCC volume of 10.7 million m3 it is currently the largest RCC gravity dam built in Africa by volume, with a reservoir surface area of 1875km2 and a volume of 74 billion m3.
GERD’s hydroelectric power stations are located on the right and left banks of the river and consist of 13 Francis turbines, with a total installed capacity of 5150MW and an average production of 15,700GWh/year.
Over 25,000 people – mostly Ethiopians – worked on the project, gaining skills and expertise that can be applied to future projects. Some of GERD’s positive economic and social impacts include development of a new town around the site, complete with a hospital, two equipped medical clinics, a school, sports facilities, a bakery producing traditional Ethiopian flatbread, and road infrastructure.
Inga 3
Earlier in June 2025, the World Bank approved a US$250 million credit from the International Development Association for the first phase of the US$1 billion Inga 3 Development Programme. This is set to help the Democratic Republic of Congo (DRC) lay the foundations for the sustainable development of DRC’s largest power project to date – starting with investments in local people, infrastructure and jobs.
Access to energy is one of the most significant roadblocks to DRC’s economic transformation and job creation at scale. Only 21% of Congolese people have access to electricity, but this is set to change as DRC’s government is embarking on a range of investments and reforms designed to increase power generation, attract private sector investors and improve the performance of the national energy utility, with the goal of increasing access to electricity to 62% by 2030.
Bob Mabiala, head of the Agency for the Development and Promotion of Grand Inga (ADPI-DRC), says electricity generation potential at the Inga site is one of the largest in the world, while development of this hydropower will be transformative for DRC.
The World Bank’s financial support and technical assistance will help ADPI-DRC manage the Inga Programme and finalise preparations for Inga 3, the third plant at a site on the Congo river that includes two older hydropower plants which provide most of DRC’s electricity. This includes support for detailed studies, capacity building, and project structuring. Inga 3’s scale – potentially generating between 2 to 11GW of power, and its technical and stakeholder complexity, mean that its preparation and construction will take around a decade and require government, development partners, the private sector, and civil society to come together.
“This is an opportunity to write a new page in DRC’s development story, one that harnesses the country’s rich resources to lift millions of people out of extreme poverty. By supporting DRC’s vision for Inga through this programme and complementary investments in governance, education and infrastructure, the World Bank Group, together with partners, can significantly contribute to converting DRC’s natural resources into economic growth, jobs, and human development for the Congolese people,” said Albert Zeufack, World Bank Division Director for Angola, Burundi, DRC and Sao Tome and Principe.
Transmission link
Heralding in new interest in Africa as an investment destination, New York-based energy investor HYDRO-LINK is to build a 1150km electricity transmission line between Angola and the DRC. Bringing decades of experience in Angola to help deliver the project, Swiss-based Mitrelli Group has also joined as a major investor and partner.
Shortages of electricity in the DRC are commonplace and affect mining and industry activity. In contrast, Angola enjoys a surplus of energy at its hydroelectric power plants, with additional capacity due to come online soon. Aligning supply with demand across borders, this project will channel the abundant hydropower potential of the Kwanza River to supplement power delivery in Angola and extend it to the energy-hungry Copperbelt region of southeastern DRC.
Scheduled for completion in 2029, the US$1.5 billion, 400kV double-circuit transmission line will include around 3500 steel lattice towers. It will feature US-manufactured 400 kV polymer insulators, ACCC carbon-core conductors, and a 24-fibre optical ground wire system for telecommunications.
Burundi
Inauguration of Burundi’s Jiji hydroelectric power station in June 2025 was seen as being a significant step in the country’s journey towards energy self-sufficiency. And, according to the country’sPpresident Évariste Ndayishimiye, marked a new era in Burundi’s energy development.
Together with the Mulembwe plant which will be operational in the coming months, these two Burundian power plants will have a total installed capacity of 49.5MW and an estimated annual output of 235GWh. They will supply electricity to 5,000 households, 7000 businesses and 1700 industrial facilities – not only improving access to electricity for thousands of residents, but also boosting productivity in key sectors such as health, education, agribusiness and ICT.
The Jiji and Mulembwe Hydropower Project includes transmission lines and substations, the total cost of which is US$320 million. The African Development Bank provided US$22 million in financing, the European Investment Bank US$36.6 million, the World Bank US$149.4 million, and the European Union $95 million. With the Government of Burundi and the Société d’électricité du Burundi contributing US$16.7 million.
Also in Burundi, the 206MW Ruzizi III regional hydroelectric power plant project is the first regional project designed within a public-private partnership framework to maximise hydroelectric potential of the Ruzizi waterfall. Involving Burundi, DRC and Rwanda, it consists of the construction of a run-of-river dam located on the Ruzizi River between the DRC and Rwanda, downstream of the Ruzizi II hydroelectric dam, a 147MW power plant and distribution station.
The new hydropower plant will supply reliable electricity to benefit development for approximately 30 million people across Burundi, the DRC and Rwanda, in a region where 54% live below the poverty line and electricity access averages just 24%. The project will nearly double Burundi’s current capacity, boost Rwanda’s by 30%, and deliver critical baseload and dispatchable power to eastern DRC, advancing economic growth, regional integration, and energy security in one of Africa’s most underserved regions.
Cameroon
Access to power remains as a critical developmental challenge for Cameroon. Despite substantial government subsidies and vast hydropower potential, in rural parts of the country 75% of the population remains without electricity even though many live near the grid. The cost of power is also among the highest in the region.
This is why completion of the Nachtigal Hydropower plant is described as being a real game changer. Financed by the World Bank Group together with other partners, it will increase Cameroon’s power generation capacity by 30% and is poised to become the first phase of sustainable hydropower development on the Sanaga river. Additional energy will ultimately provide the entire population and businesses with more affordable, reliable, and clean power.
In 2025, six of the seven turbines were contributing 360MW out of the full 420MW capability.
Malawi
The World Bank has approved a US$350 million grant from the International Development Association (IDA) to support Malawi’s Mpatamanga Hydropower Storage Project (MHSP), a major infrastructure initiative that will add 358MW to Malawi’s electricity generation capacity. The MHSP is co-developed by the Government of Malawi and the International Finance Corporation, alongside owners EDF, British International Investment, Norfund, and TotalEnergies.
At completion, subject to the mobilisation of private financing, MHSP will significantly increase the country’s installed capacity, delivering 1544GWh annually. This additional energy will help supply electricity to over a million new households in the country and will create thousands of job opportunities.
“MHSP is a top priority for our government as the least-cost option in meeting our growing energy demand and achieving our access targets,” said Ibrahim Matola, country’s Minister of Energy. “Once operational, this project will help drive long-term energy security and support lasting, inclusive economic growth. Energy access is fundamental to reducing poverty, fostering economic growth, and attracting private investment.”
MHSP’s main and regulating dams on the Shire River will generate clean energy and store power to supply electricity during peak demand hours, helping to improve the reliability of Malawi’s national grid. The hydropower facility will also boost the grid’s capacity to support the growing demand of the country’s mining companies, an industry which holds significant potential to boost the country’s economic development prospects over the coming decade.
“This new hydropower project is a game-changer for Malawi, capable of catalysing transformative change in productive economic sectors such as mining, agri-business and tourism. As the country works on driving its economic development agenda, this new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians,” said Nathan Belete, World Bank Division Director for Malawi, Tanzania, Zambia and Zimbabwe.
South Africa
Serengeti Energy has secured funding for a portfolio of hydropower projects in South Africa. With Investec acting as the mandated lead arranger, senior lender, and hedge provider, it’s been able to structure a comprehensive funding package tailored specifically for Serengeti Energy to enable:
• Refinancing and upgrading of the 3MW Sol Plaatje hydropower plant.
• Refinancing and upgrading of the 4MW Merino hydropower plant.
• Construction of the new 5MW Boston hydropower plant.
All three projects are located on the Ash River in the Free State and are backed by power purchase agreements, allowing clean energy to be delivered efficiently through wheeling on the national electricity grid.
Strafford Harris, Chief Operating Officer of Serengeti Energy, emphasised the impact of this partnership:
“This financing arrangement showcases how innovative private sector financial solutions can support the long-term sustainability of hydro power in South Africa. By working closely with Investec, we have been able to optimise our portfolio, ensuring that these assets continue to generate clean energy efficiently and sustainably for years to come.”
Wilfred van den Bos, Chief Investment Officer of Serengeti Energy, added the transaction with Investec demonstrates the strength of structured financing in the renewable energy sector.
In October 2025, Serengeti Energy also announced that the Boston Hydro Project had achieved commercial pperations. Following 23 months of construction, this US$23 million hydropower facility is the company’s fourth hydropower project in South Africa.
The project benefitted from the ongoing liberalisation of the South African power sector by entering into an off-take agreement with Etana Energy, a power trader. The power purchase agreement is based on a fully commercial willing buyer/willing seller arrangement and is not subject to any regulatory tariff constraints.
Over its lifetime, Boston Hydro is expected to avoid approximately 1.5 million tons of CO2 emissions while generating around 30GWh per year.
Despite weather-related challenges the project team successfully completed all powerhouse, civil, and electromechanical works, including turbine installation and architectural finishes on budget. A series of rigorous commissioning and performance tests culminated in successful grid synchronisation in August 2025 and subsequent Grid Code compliance certification by Eskom, confirming the plant’s readiness for operation.
Anton-Louis Olivier, CEO of Serengeti Energy, commented: “Boston Hydro is a key milestone that reflects our team’s hydropower and commercial expertise and demonstrates our ability to deliver a technically complex project and an innovative offtake and financing structure.”
African action plan
As the IHA acknowledged in its World Hydropower Outlook Report for 2025, although Africa has a significant pipeline of approved hydropower projects, key challenges remain in reaching financial investment decision and progressing to construction. According to the IHA, several barriers that can continue to stall progress at the financing stage include:
• Offtake risk.
• High foreign exchange hedging costs.
• Persistent concerns among lenders regarding project bankability and risk exposure.
Without targeted interventions, the IHA warns these constraints will continue to delay delivery.
In an effort to address these challenges, the association launched the Abuja Action Plan in May 2024 which outlines practical recommendations to de-risk projects, attract finance and accelerate delivery. If implemented, it could transform the investment landscape and secure the long-term future of hydropower in Africa.
Key points of the Abuja Action Plan include:
• African governments are called on to recognise and champion sustainable hydropower as a clean, green, modern and affordable solution to provision of secure electricity supply. They’re also recommended to make clear long-term plans for the development of renewable energy, including targets for the development of hydropower, and are encouraged to speed up permitting of projects, while also improving the quality of decisions.
• All actors are called on to recognise and reward hydropower’s role as an enabler of variable renewable energies and prioritise this technology accordingly. They’re also urged to implement policies that support decarbonisation by advancing sustainable hydropower projects.
• All companies planning, constructing and operating hydropower projects in Africa should do so in accordance with international good practice as defined by the Hydropower Sustainability Standard.
• Furthermore, governments are encouraged to support the commitment to good practice by expediting projects that are certified under the standard.
Figuring out African hydropower
• 47GW of total installed capacity
• 167TWh of generation in 2024
• 3726MW of total pumped storage installed capacity
Top five countries by capacity added in 2024:
• Tanzania – 1880MW
• Ethiopia – 1200MW
• Uganda – 605MW
• Morocco – 349MW
• Cameroon – 300MW
Top ten countries ranked by total installed hydropower capacity:
• Ethiopia – 6024MW
• Angola – 3890MW
• South Africa -3600MW
• DR Congo – 3216MW
• Zambia – 3164MW
• Nigeria – 2851MW
• Egypt – 2832MW
• Tanzania – 2704MW
• Morocco – 2585MW
• Mozambique – 2216MW
All data courtesy of IHA’s 2025 World Hydropower Outlook
