While Africa’s infrastructure financing gap is frequently discussed, this Enlit Africa session shifted the conversation from funding availability to project execution.
Bringing together representatives from utilities in Malawi and Mozambique, the discussion explored what enables major infrastructure projects to move from concept to commissioning, and what practical lessons can be applied across the continent.
Moderated by Tshegofatso Neeuwfan, Country Manager for the Global Energy Alliance for People and Planet (GEAPP), the session focused on completed and advanced projects rather than theory, examining the structures, partnerships and governance mechanisms that have enabled successful delivery.
Opening the discussion, Neeuwfan framed the central challenge facing the sector: “There’s funding, there’s a glut of funding, but there aren’t any good projects that can move the funding.”
The session sought to test whether this widely held assumption is accurate by examining real project experiences and identifying the factors that contributed to successful implementation.
Alex Kaitane, Director of Projects and Development at Escom Malawi, shared lessons from several recent infrastructure projects, including the JCM solar project, a battery energy storage system and the Mozambique-Malawi Interconnector.
He explained that many independent power producers initially express interest in new opportunities, but relatively few reach financial close.
According to Kaitane, one of the critical success factors for the JCM project was the willingness of both the utility and the developer to revisit contractual conditions that were preventing financing from being secured.
Rather than treating the independent power producer as simply a supplier, Escom Malawi worked alongside the developer throughout project preparation, technical design, factory acceptance testing and commissioning.
“We did not look at them as someone that is just coming to provide us with a product, but we looked at them as a partner.”
Kaitane also described how integrating 60 MW of solar generation highlighted the need for battery energy storage to improve system stability and support additional renewable energy integration.
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Adriano Jonas, Project Director at Mozambique’s national utility EDM and project lead for the Temane Transmission Project, outlined how the country structured one of its largest recent infrastructure investments.
The project combines gas production, a 450 MW independent power plant and approximately 600 kilometres of new transmission infrastructure into an integrated development valued at close to US$2 billion.
Jonas explained that the transmission component was delivered through a dedicated special purpose vehicle (SPV), allowing construction, financing, operational and commercial risks to be managed separately from the utility’s broader activities.
“One of the best ways to manage all the risks, was to create a special purpose vehicle,” he shared.
Because EDM serves as the off taker for both gas and electricity, the project required carefully designed contractual mechanisms to balance commercial responsibilities across multiple participants.
A tolling agreement was developed to allocate costs across gas supply, electricity generation and transmission, ensuring that all three parts of the project remained financially viable throughout the concession period.
Audience polling during the session identified project preparation as the single biggest constraint to successful infrastructure delivery, ahead of financing, regulation or utility capacity.
Both speakers agreed with this conclusion.
Kaitane argued that effective project preparation naturally addresses many of the other challenges commonly associated with infrastructure delivery.
“Project preparation is maybe the one most single important factor.”
He explained that involving all project partners throughout preparation enables technical, contractual and implementation risks to be identified early, allowing practical solutions to be developed before construction begins.
“Everyone owns everything, and together, collectively you have to sit down and come up with a solution.”
Jonas similarly stressed that successful preparation extends beyond engineering studies.
For large transmission projects, preparation must also consider national policy, regulatory frameworks, institutional capacity, financing structures and risk allocation.
“Project preparation is the key factor for the success.”
The discussion also examined how large infrastructure projects can attract private investment while protecting lenders against long-term commercial risks.
Using the Temane project as an example, Jonas described how the World Bank’s Partial Risk Guarantee supports investor confidence by reducing payment risk associated with EDM’s long-term power purchase obligations.
The project also relies on government commitments to maintain efficient utility operations and implement cost-reflective tariffs throughout the concession period.
Jonas noted that legal and regulatory certainty remains essential for investments spanning multiple decades.
“The legal and regulatory framework needs to be a strong one.”
One of the session’s strongest themes centred on regional electricity integration.
Kaitane explained that the Mozambique-Malawi Interconnector deliberately treated the transmission project as a single development rather than two separate national projects.
This included jointly commissioned feasibility studies, shared procurement processes, common technical advisers and coordinated financing arrangements.
“The whole thing was being viewed as one.”
He said this approach ensured that both countries advanced together throughout implementation rather than progressing independently.
“This is one project.”
The speakers acknowledged that cross-border infrastructure becomes increasingly complex as more countries become involved, particularly where legal, regulatory and technical standards differ.
Jonas pointed to regional transmission initiatives as examples where stronger coordination and more comprehensive project preparation will be essential before financing can be secured.
While financing mechanisms, guarantees and contractual structures all play important roles, successful infrastructure delivery ultimately depends on sustained collaboration between governments, utilities, financiers, developers and regulators.
Neeuwfan concluded the discussion highlighting the importance of embedding collaboration into every stage of project delivery. “The resounding message is coordination.”
Rather than viewing infrastructure development as a series of separate technical, financial or legal processes, the session demonstrated that successful projects are those where preparation, governance and execution remain closely aligned from inception through commissioning.
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