Burundi signs $1.4 Billion power deal to expand electricity access

Burundi has signed a 25-year public-private partnership with Weza Power, a company established by U.S. energy developer Anzana Electric Group, to expand electricity distribution and connect more than 1.2 million households and businesses to the grid.

The agreement, signed Oct. 15 in Bujumbura and announced publicly the following day, is expected to mobilize $1.4 billion in financing for electricity infrastructure, targeting more than 50% on-grid electrification and improved access for an estimated 8 million people.

The project will extend electricity distribution to 1,400 hills in southern and eastern Burundi, according to the government’s announcement. It also aims to reduce power outages, stabilize voltage, modernize metering and billing systems, and improve customer services.

Under the agreement, Weza Power will invest in, expand and operate the distribution network in approximately half the country. State-owned utility REGIDESO will retain responsibility for distribution in the other half and continue supplying electricity through the national transmission network.

Weza Power plans to build or upgrade 52,000 kilometers (about 32,300 miles) of distribution lines and connect more than 1.2 million new households and businesses. The company projects that the initiative will create more than 2,000 direct jobs and 30,000 indirect jobs, although it has not provided a detailed employment timeline.

The partnership’s electrification target is an increase from approximately 15% on-grid access to more than 50%. The company estimates that about 8 million people will receive first-time or improved access to electricity.

A separate U.S. government statement cited a target of raising Burundi’s electrification rate from 12% to 70%. The available announcements do not explain how that target relates to the partnership’s on-grid electrification figures.

Burundi continues to face substantial electricity access challenges, particularly in rural areas. In October 2024, the U.S. International Development Finance Corp. said about 12% of the population had reliable access to electricity, with the rate below 2% in rural areas.

President Évariste Ndayishimiye described the agreement as part of the country’s long-term economic ambitions.

“Electricity is the foundation of Burundi’s economic transformation and a key pillar of our Vision 2040-2060 ambitions,” Ndayishimiye said in the company’s announcement.

Energy Minister Hassan Kibeya said Burundi’s installed electricity generation capacity stands at approximately 183 megawatts, highlighting the need to expand distribution infrastructure so that existing and future power supplies can reach consumers.

“Reliable electricity will power Burundi’s industries, enable local processing of critical minerals, and fuel sustainable economic growth,” Kibeya said.

The financing structure is expected to combine private commercial investment with concessional funding and support from development institutions. Partners identified in the announcements include the World Bank Group, the International Finance Corp., the Multilateral Investment Guarantee Agency, the African Development Bank, the U.S. International Development Finance Corp., the U.S. Trade and Development Agency, Norway’s development cooperation agency NORAD and Gridworks, an electricity infrastructure investor owned by British International Investment.

Anzana said the financing model is designed to expand electricity access without increasing public debt. The announcements did not provide details of the proposed financing instruments, the respective contributions of the partners or the financial obligations attached to the concession.

The agreement also supports Burundi’s participation in Mission 300, a joint World Bank Group and African Development Bank initiative aimed at connecting 300 million people across Africa to electricity by 2030.

The U.S. government has presented the partnership as an opportunity to deepen commercial engagement with Burundi, including in mining and agro-processing. However, the announcements did not identify specific additional investments expected to follow from the electricity agreement.

Anzana has operated in Burundi’s energy sector since 2018 through Songa Energy, which operates one hydropower plant and has a second under construction, according to the company.

The agreement establishes a private-sector-led model for expanding electricity distribution at national scale.

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