Investing in Madagascar’s hydro-power sector

The European Union has recently signed a letter of intent with the Government of Madagascar for a multi-billion-shilling hydro-power project aimed at boosting energy supply in the region. Roland Kobia, the EU Ambassador Designate to Madagascar and Comoros, shared insights with CNBC Africa regarding this significant development. Kobia highlighted that the signed letter of comfort signifies the EU's commitment to contribute to the hydro-power project. While the exact amount of investment is still under discussion, it is expected that a blend of grants and concessional loans through the European Investment Bank and EU institutions will be utilized for the project. Kobia emphasized that the project is set to be massive and will substantially increase the EU's current investment in the energy sector in Madagascar. Addressing the importance of renewable energy, Kobia stressed the EU's strong green agenda aimed at supporting partners in transitioning to greener energy production and moving away from fossil fuels. The Volobi project in Madagascar is just one part of the EU's broader efforts across Africa to promote renewable energy initiatives. Kobia also mentioned the Global Gateway project, emphasizing the importance of infrastructure development and interconnectivity among African countries in various sectors, including energy, digitalization, and transport. Furthermore, Kobia emphasized the importance of collaboration, noting that while the EU is a key trade and development partner for African nations, partnerships with other countries and organizations are essential to create a significant impact. He called on all potential partners to join these initiatives to help Africa transition towards a greener economy and reduce reliance on hydrocarbons, which have been a significant burden on the public finances of many African countries. With the EU's commitment to investing in the hydro-power sector in Madagascar and promoting green energy initiatives across the continent, a significant step towards sustainable development and energy security in Africa is being taken.