For decades, the African continent’s power infrastructure has existed in distinct, isolated spheres. Down south, the Southern African Power Pool (SAPP) managed regional energy dynamics; to the north, the Eastern Africa Power Pool (EAPP) operated in its own orbit. The two vast electricity markets have never traded directly with one another. Now, an ambitious infrastructure endeavor is about to bridge that gap, fundamentally changing the geopolitical and economic reality for energy-vulnerable nations like Zambia.
At the heart of this regional integration is a critical 400kV transmission connection running from Kasama in northern Zambia to Mbeya in southern Tanzania the final stretch of the sprawling Zambia-Tanzania-Kenya interconnector. With work on the Tanzanian side expected to complete during 2026, the construction on the Zambian side, slated to begin earlier this year, promises to redefine how power flows across the continent.
For Zambia, the stakes could not be higher. The country has long relied almost entirely on hydropower to supply domestic homes and fuel its export market. That dependence proved catastrophic during the devastating 2024 drought, which laid bare the fragility of relying on a single water source when the Zambezi River runs low. Once live, the interconnector turns a structural vulnerability into a dynamic balancing act: Zambia can import power from the north during dry years and export surplus energy when its own reservoirs recover.
“The project addresses the long-term sustainability of a power sector whose financial position has held back economic growth,” noted Achim Fock, World Bank Country Manager for Zambia. “Increased electricity trade carries the potential to reduce the cost of service.”
Financially, the project provides a lifeline without adding to local balance-sheet woes. Sitting within the World Bank’s Regional Energy Transmission, Trade and Decarbonization programme for Southern Africa, the Zambian section carries a total net commitment of US$292 million provided entirely as a grant. The funding stack combines US$245 million from the International Development Association, US$30 million from the European Union, and US$17 million from the UK Foreign, Commonwealth and Development Office via ESMAP. Crucially, no debt attaches to a utility already grappling with deep financial viability problems.
The timing of the project coincides with a welcome, if temporary, domestic reprieve. Water storage levels have rebounded: the Zambezi River Authority revised its 2026 allocation for power generation up to 36 billion cubic metres from 30 billion previously split evenly between Zambia’s ZESCO and the Zimbabwe Power Company. Usable storage at the Kariba Dam reached 48.09 per cent by mid-year, up significantly from 23.47 per cent at the same point a year prior.
Yet, as climate volatility increases, temporary water recoveries offer no permanent guarantee. The real transformation lies in long-term connectivity. Beyond macro-level regional trade, the interconnector brings immediate local impact. Because the line passes through Kasama a province where the electrical grid coverage remains notoriously thin rural connections along its path were directly written into the project’s design. By linking local communities to a grand continental grid, the project promises not just regional energy security, but a direct spark for local economic development.
