MCDF Grants Support Botswana’s Power Transmission Development with Zambia, South Africa, and Namibia for Sustainable Regional Energy Trade

Three grants to support the preparation of three complementary power transmission projects between Botswana and Zambia, South Africa, and Namibia, all aiming to build sustainable energy connectivity and trade in Southern Africa, were approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during their meeting in Beijing on 31 March. The three projects will be implemented by the African Development Bank (AfDB).

A USD882,000 MCDF grant will fund a full feasibility study on developing a 400 kilovolt (kV) interconnector facility project to enable renewable energy power exchange between Botswana and Zambia. The feasibility study will draw upon an initial pre-feasibility study supported by the Sustainable Energy Fund for Africa (SEFA) and include an environmental impact assessment and resettlement action plans.

A USD1,312,500 MCDF grant will fund a full feasibility study on the development of a 400 kV interconnector facility that can transfer solar and wind-generated electricity between Isang, Botswana, near the country’s capital, Gaborone, and Mahikeng in northwest South Africa. The study will consist of technical, financial, legal, institutional, operational, and commercial due diligence for the project.

An additional USD1,312,500 MCDF grant will fund a combined pre-feasibility and feasibility study for a longer interconnector facility project to deliver renewable-based power between Botswana and Namibia. The pre-feasibility study will inform the interconnector route and consider the other two Botswana-anchored interconnector lines in gauging the viability of a 400 kV line compared to a larger 765 kV line.

Each of the MCDF grant-supported interconnector projects aim to boost electricity grid integration and trade among host countries and across the wider region, aligning with frameworks under the Southern African Development Community (SADC) and Southern African Power Pool (SAPP).

The projects would in turn help countries in the region both adapt to and mitigate climate threats, such as hydropower disruptions due to droughts, by expanding access to broad range of low-carbon power sources.

MCDF grant-supported activities will further help to ensure that the three interconnector projects are bankable and can satisfy International Financial Institution (IFI) standards requirements for financing by AfDB and partners.