The World Bank has approved a new project to assist the Southern African Power Pool (SAPP) in expanding its regional electricity market. The initiative, named RETRADE SAPP, is designed to attract private investment for transmission infrastructure and to deepen participation in the regional power market.
The project aims to support increased electricity trading among SAPP’s member countries, which include Angola, Botswana, Democratic Republic of Congo, Eswatini, Lesotho, Malawi, Mozambique, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe. The integration of renewable energy and cross-border power flows is expected to create opportunities for industrial growth and job creation throughout the region.
RETRADE SAPP represents Phase 2 of the Regional Energy Transmission, Trade and Decarbonization Project in Southern Africa Multi-Phase Programmatic Approach (RETRADE-SA MPA). It will also facilitate preparation and implementation of World Bank-financed interconnector projects across southern Africa.
The project aligns with broader continental initiatives such as the African Union’s Programme for Infrastructure Development in Africa and the Southern African Development Community’s (SADC) Regional Infrastructure Development Master Plan. It also supports Mission 300—an effort aimed at connecting 300 million people in Sub-Saharan Africa to electricity by 2030—by promoting regional power integration.
“The expansion and integration of regional transmission networks is critical to improve the reliability and affordability of electricity in Africa,” said Ndiamé Diop, World Bank Vice President for Eastern and Southern Africa. “This project will help strengthen cross-border power trade and private investment in energy, contributing to the region’s economic growth, diversification and job-creation.”
Funding for RETRADE SAPP totals $12 million: $10 million from a grant provided by the International Development Association (IDA), along with $2 million from the Energy Sector Management Assistance Program (ESMAP). This technical assistance will benefit not only SAPP but also other regional organizations such as SADC itself; the Regional Energy Regulators Association of Southern Africa (RERA); and the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE).
Steve Dihwa, Executive Director at SAPP Coordination Centre said: “The Southern African Power Pool welcomes this partnership, which will help us take a major step forward in deepening regional integration in the power sector. Our region is endowed with abundant energy resources, yet many member countries still face persistent challenges in expanding electricity access in an affordable, reliable, and sustainable manner. This technical assistance will accelerate support to our members in delivering urgently needed, high-quality and resilient energy infrastructure while fostering a supportive environment for increased private-sector investment and cross-border electricity trading.”