Ethiopia to Speed Up Green Energy Transition

(3 Minutes Read)

Ethiopia’s Ministry of Finance and Ethiopian Electric Power (EEP) have signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI) to accelerate the country’s clean energy transition.

Ethiopia’s Ministry of Finance and Ethiopian Electric Power (EEP) have signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI) to accelerate the country’s clean energy transition.

The partnership will attract foreign investment in renewable energy projects through ATIDI’s Regional Liquidity Support Facility (RLSF).

The MoU allows Independent Power Producers (IPPs) and Public-Private Partnerships (PPPs) to access RLSF, a mechanism developed with KfW Development Bank and Norad. RLSF will ensure timely payments from state-owned utilities, addressing a key challenge in Ethiopia’s energy sector and improving financial stability.

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Finance Minister Ahmed Shide emphasised that the agreement would enhance the bankability of power purchase agreements (PPAs) and strengthen EEP’s creditworthiness. ATIDI CEO Manuel Moses expressed confidence that the partnership would boost Ethiopia’s renewable energy capacity and contribute to Africa’s sustainable development. Ethiopia is the 11th country to sign the RLSF MoU.