Power Projects in Africa

MCC is investing in African power systems through our compacts to increase access to and the reliability and sustainability of electricity supply through energy infrastructure, policy and regulatory reforms and institutional capacity building.

Compact Projects

Ghana Power Compact

The Millennium Challenge Corporation will invest up to $498.2 million to support the transformation of Ghana’s power sector and stimulate private investment. The five-year Ghana Power Compact seeks to create a financially viable power sector that will meet the current and future needs of households and businesses—and ultimately help fight poverty across the country.
The compact will play a critical role in Power Africa, the U.S. Government’s initiative to double access to power on the African continent. The Ghana Power Compact is the largest U.S. Government transaction to date under Power Africa and will serve as an anchor for increased American engagement in Ghana.
At the heart of the compact is a strong commitment from the Government of Ghana to implement reforms needed to transform its power sector and put it on a path to profitability and sustainability, ultimately creating a climate that will attract private investment. The government has also pledged to invest at least $37.4 million of its own money, and the compact is expected to catalyze at least $4.6 billion in private energy investment and activity from American firms in the coming years.

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Ghana Compact:
Rural Development Project

This project complements the Agriculture Project by providing community services of education, water and sanitation, and rural electrification infrastructure in the targeted districts, and by enhancing the capacity of local governments to deliver the related services.

  • Support community services;
  • Strengthen the procurement capacity of the public sector; and
  • Strengthen financial services in rural areas.

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Malawi Compact:
Power Sector Revitalization Project

The Power Sector Revitalization Project is comprised of two activities, the Infrastructure Development Activity and the Power Sector Reform Activity.

Infrastructure Development Activity

The Infrastructure Development Activity focuses on the most urgent rehabilitation, upgrade and modernization needs of the power system. The activity will preserve and stabilize existing generation capacity, improve capacity of the transmission and distribution network and increase the efficiency and sustainability of hydropower generation.

The Government of Malawi will commit to investing in additional generation capacity by completing the construction of new hydropower generation. The Infrastructure Development Activity also includes a sub-activity addressing environmental and social factors that negatively impact Malawi’s hydropower plants.

Power Sector Reform Activity

The Power Sector Reform Activity complements the Infrastructure Development Activity by providing support for the Government of Malawi’s policy reform agenda and by building capacity in critical sector institutions. The activity will build capacity and provide technical assistance to the Electricity Supply Corporation of Malawi (ESCOM), the Malawi Energy Regulatory Authority and the Ministry of Natural Resources, Energy and the Environment.


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Tanzania Compact:
Energy Sector Project

This project will improve electricity service and coverage through the addition of new power generation, transmission and distribution capacity, as well as through much needed reinforcement of the existing network. The project will increase investment and economic activity to businesses and communities, some of which will receive electricity for the first time

  • Lay a submarine electric transmission cable from the mainland to Unguja Island (Zanzibar), as well as extend the distribution network; and
  • Rehabilitate the existing distribution infrastructure and a number of distribution line extensions to unserved areas in six regions (Mwanza, Iringa, Mbeya, Dodoma, Tanga, Kigoma and Morogoro).

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Turning Blackouts into Opportunities

MCC's investments in Zanzibar's electrical grid should make regular blackouts a thing of the past

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Solar Power Brings Brighter Future for Western Tanzania

MCC brought solar power to western Tanzania, helping bring electricity for the first time to health centers, dispensaries, village markets, and secondary schools. It's the largest solar-power project in the country.

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MCC opens the way for two American companies to do business in Tanzania

Where many might see challenges in the Tanzanian energy sector, two American companies saw opportunity.

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Fact Sheets

Fact Sheet

Power Africa

Read how Power Africa will build on Africa’s enormous power potential, including new discoveries of oil and gas reserves, and the potential to develop clean geothermal, hydro, wind and solar energy.

Read the Fact Sheet

Powering Tanzania



Watch a video about ESB International’s work to connect electricity to Zanzibar as part of the Energy Sector Project in MCC’s Tanzania Compact. (Video courtesy of ESB International.)