Ethiopia Ranks Eighth in EU Energy Financing as Africa’s Power Gap Persists

Mintesinot Nigussie

Ethiopia received 2.2 billion euros in European financing for energy projects linked to the Sustainable Development Goals between 2014 and 2024, placing it eighth among African recipients, according to a report by the European Union and the African Union.

The ranking positions Ethiopia behind several larger beneficiaries of energy funding across the continent. Egypt topped the list with 6.3 billion euros, followed by Nigeria with 5.1 billion euros, South Africa with 4.9 billion euros, Morocco with 4.1 billion euros and Kenya with 3.9 billion euros.

The report also shows that Ethiopia’s financing profile sits within a broader pattern of uneven energy investment across Africa, where both external and domestic flows are heavily concentrated in a limited number of countries.

China’s energy financing over the same period reached more than 15 billion euros in Angola, 5.4 billion euros in South Africa, and 2.3 billion euros each in Zambia and Nigeria. Ethiopia received 0.8 billion euros in Chinese energy-related funding up to 2023.

Domestic public investment followed a similar distribution. Ethiopia allocated 2.1 billion euros to its energy sector during the period, while Egypt and South Africa each recorded spending of more than 25 billion euros. More than 40 African governments spent less than one billion euros on energy infrastructure.

Despite rising investment flows, electricity access gains across the continent have remained limited relative to demographic growth. The report estimates that around 35 million people gained access to electricity over the period, but the overall access deficit narrowed only slightly, from 570 million in 2022 to 565 million.

In Sub-Saharan Africa, which accounts for about 85 percent of the global population without electricity access, Ethiopia remains among the countries with the largest deficits. In 2023, Nigeria recorded 86.6 million people without access, the Democratic Republic of Congo 79.6 million, and Ethiopia 56.4 million.

The report notes that electrification strategies across the region are gradually shifting, with decentralised energy systems playing an expanding role alongside traditional grid expansion and large-scale power generation.

Overall, Ethiopia’s eighth-place ranking in EU energy financing highlights both progress and the persistent power gap across Africa, underscoring the need for continued investment to expand electricity access.