East African countries are joining forces in a new power bloc – literally. This is expected to drive the demand for project cargo for the next 25 years. The electrification rate in sub-Saharan Africa is only 26% and it is as low as 12% in East Africa, according to Green Resources. The total generation capital investment in East Africa will be about US$106 billion by 2040, according to “Brighter Africa,” a report published in February 2015 by McKinsey & Company. Demand for power in East Africa is expected to grow by an average of 7.2% a year to 2040. Tanzania has large gas reserves and Ethiopia untapped hydro and thermal potential. Kenya also has thermal power potential, according to McKinsey.
