The East Africa power market size reached 21.0 GW in 2024, and it is expected to reach 28.9 GW by 2033, exhibiting a growth rate (CAGR) of 3.3% from 2025 to 2033.
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The growing population in the region is one of the key factors propelling the power demand. Kenya's population is expected to grow by more than 4 million between 2024 and 2029. By 2029, the population of the country will reach nearly 57 million. Additionally, more people are shifting to urban areas which is further increasing the need for electricity for day-to-day activities. Besides this, ongoing technological advancements and foreign investment are boosting the power solutions demand across the region.
Additionally, the adoption of renewable energy across East Africa is one of the major factors propelling the industry’s growth. Also, government bodies across the region are focusing on renewable sources of energy to meet the increasing electricity demand. Besides this, solar, wind, and hydroelectric projects are being rapidly developed, thereby creating a favorable market outlook in East Africa. In October 2024, the Government of the Republic of Kenya (GoK) collaborated with the Global Green Growth Institute to launch a one-year project to invest in green hydrogen to support renewable energy. Similarly, in July 2024, KenGen collaborated with the French Development Agency to add a solar power plant with a capacity of more than 42 MW. This project helps to boost the deployment of green energy and provide electricity for the increasing population and growing industries in the region. Moreover, supportive policies and improved technology are making renewable energy more affordable and easier to use. This shift is also helping remote areas get power while minimizing dependence on traditional energy sources.
The market research report has also provided a comprehensive analysis of all the major regional markets, which include Ethiopia, Kenya, Tanzania, Uganda, Sudan, Rwanda, and others. These countries enter into regional cooperation agreements that make it easier to trade electricity. Moreover, the increasing industrialization levels are also bolstering the market across these countries.
The market growth in Ethiopia is attributed to the growing focus on hydropower. Grand Ethiopian Renaissance dams aim to generate more than 6,000 MW of electricity. It is one of the largest projects in the country. Also, this focus connects with the country's strategy to utilize its abundant water resources, further driving the market demand in Ethiopia.
The market in Kenya is expanding, which is attributed to the expanding geothermal energy sources. The country also produces more than 850 MW, especially from the Olkaria Geothermal Field. Also, by 2030, the country aims to expand its capacity to 5,000 MW. Besides this, Kenya produces more than 90% of its energy from renewable sources. This will continue to augment the market in the country in the foreseeable future.
Tanzania's focus on natural gas reserves is one of the key factors driving the market growth. Moreover, the country produces more than 50% of its electricity from gas-fired plants, including the Kinyerezi Power Station. Besides this, the rising government efforts on gas usage for power generation are acting as growth-inducing factors in Tanzania.
The expanding hydropower is one of the major factors adding to the industry demand in Uganda. Also, in September 2024, the president of Uganda launched a 600 MW Karuma Hydropower Station in Kiryandogo. This project further promotes the deployment of renewable energy, driving market growth in the country.
The growing urbanization levels drive the rising power demand in Sudan. The government's focus on electrification, especially in rural areas, is propelling market growth across the country. In July 2024, South Sudan received USD 20 Million in funding to solarize its telecom towers. The project aimed to improve connectivity and reduce operating costs in the telecom sector, further propelling the industry's growth.
The rising government initiatives, along with public-private partnerships, are bolstering the power demand in Rwanda. In June 2024, ARC Power collaborated with the Government of Rwanda. This aims to boost energy access in the country by deploying solar energy units. Additionally, this initiative provides electricity to more than 35,000 homes and schools, further escalating the market demand across the country.
The economic growth and development across other countries, including Malawi, Burundi, the Democratic Republic of Congo, etc., can be harnessed by investments by local authorities in enhancing the regulatory and financial environment, improving the performance of national utilities, building capacities, etc.
The report has also provided a comprehensive analysis of the competitive landscape in the market. Emerging companies are investing in sustainable development goals and alternative power sources. Furthermore, extensive public-private partnerships (PPPs) will continue to augment the regional market in the coming years.
Report Features | Details |
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Market Size in 2024 | 21.0 GW |
Market Forecast in 2033 | 28.9 GW |
Market Growth Rate 2025-2033 | 3.3% |
Units | GW |
Scope of the Report | Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
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Generation Sources Covered | Thermal, Hydro, Renewable, Others |
Countries Covered | Ethiopia, Kenya, Tanzania, Uganda, Sudan, Rwanda, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |