SOUTHERN AFRICAN POWER POOL: Powering Southern Africa: SAPP at 30

Southern Africa, rich in resources but often short on energy, has long faced a familiar and frustrating paradox: countries blessed with hydro, coal, gas, and solar potential still struggle to keep the lights on. The reason isn’t necessarily a lack of capacity—it’s a lack of connectivity.

Across the 12 mainland member states of the Southern African Development Community (SADC), gaps in infrastructure, disjointed planning, and a legacy of inward-focused policymaking have led to power shortages, unreliable supply, and expensive electricity, with individual nations scrambling to meet demand on their own.

“The biggest challenge has always been getting utilities in sovereign states to look beyond national issues,” explains Stephen Dihwa, Executive Director of the Southern African Power Pool (SAPP). “By nature, they tend to focus on the challenges inside their own borders, but we’re helping them see that collaboration can deliver better outcomes for everyone.”

This year, SAPP is celebrating 30 years of precisely that kind of collaboration—three decades of pushing for deeper cross-border interconnectivity, coordinated energy markets, and competitive regional pricing in a part of the world where those things once seemed like a distant dream. 

FOUNDATION OF TRUST 

Established in 1995 under the auspices of SADC, SAPP was created with a clear goal: to bring utilities together for emergency support and long-term collaboration. But what started as a contingency framework for energy-sharing during crises has evolved into a much more ambitious platform for regional power market integration. 

“It began with an intergovernmental Memorandum of Understanding between the 12 countries,” says Dihwa. “The idea was that if one country was struggling, neighbours could help. But that initial cooperation laid the foundation for something much more advanced—today we have a competitive electricity market across the region.”

Headquartered in Harare, Zimbabwe, and supported by a project coordination office in South Africa, SAPP facilitates day-to-day regional operations, ensures technical alignment between grids, and provides a structured platform for energy trading, which Dihwa believes is key to unlocking long-term energy security. 

“We’ve managed to establish a power exchange, which means utilities don’t just rely on bilateral deals anymore. They can compete. They can trade based on capacity and demand. That creates a healthier, more flexible, and more transparent market.” 

MALAWI-MOZAMBIQUE LINK 

SAPP’s most recent success story—and arguably its most transformational to date—is the Malawi-Mozambique Interconnector, which is now in the final stages of completion.

This project involves the construction of a 218 km, 400kV high-voltage transmission line connecting the Matambo substation in western Mozambique to Phombeya in southern Malawi. For the first time in its history, Malawi will be fully integrated into the southern African power network, enabling both imports and, potentially, exports of electricity. 

“Malawi has suffered a power deficit for many years,” says Dihwa. “Because they weren’t connected to the rest of the region, they had no way to cover shortfalls. If their own capacity couldn’t meet demand, they were forced to loadshed. Now, they can import power—especially from Mozambique, which has had excess energy available.” 

It’s a significant step forward not just for Malawi, but for SAPP itself. The interconnection means 10 out of 12 SAPP countries will now be physically linked to the regional grid. Only Angola and Tanzania remain outside, and plans are firmly in place to change that.

“The interconnector is owned and implemented by the two utilities—Electricidade de Moçambique and ESCOM in Malawi—but our role is to coordinate and make sure the integration works technically and operationally,” Dihwa adds. “We help ensure it blends with other grids and meets SAPP specifications. That coordination is vital when building a region-wide network.” 

LINKING EAST AND SOUTH

The next milestone is the Tanzania-Zambia Interconnection Project (TANZAM)—a strategic, cross-border development that will not only bring Tanzania into SAPP’s physical fold but also link the southern and eastern African energy pools, creating a massive continental trading bloc. 

“Tanzania is a member of both SADC and the East African Community, so this interconnector does more than connect two countries—it connects two regions,” says Dihwa. “The aim is to create an integrated African power grid, and this is a critical piece of that puzzle.”

The TANZAM project includes the construction of a 620 km, 400kV line from Iringa in central Tanzania to the Zambian border, with a future tie-in to ZESCO’s transmission system. Backed by multiple development partners including the African Development Bank, the interconnector promises to inject new capacity into both national systems and dramatically increase flexibility for utilities in both countries. 

While construction has experienced delays, the project is now progressing and is expected to be a catalyst for both regional trade and infrastructure investment. 

“These kinds of large-scale projects are complex, but the benefits are immense,” Dihwa says. “Once that link is in place, we’ll have a continuous corridor for energy trading from Cape Town to Nairobi.”

CHALLENGES REMAIN

Despite the impressive progress, SAPP still faces familiar and frustrating roadblocks—many of them financial.

“One major challenge is the lack of investment in transmission infrastructure,” says Dihwa. “It’s not just about building power stations. You have to be able to move the electricity across borders. Without adequate transmission capacity, trading can’t happen—even if there is generation surplus.” 

In response, SAPP is working closely with partners like Climate Fund Managers to unlock private capital for grid expansion. The recently launched $1.3 billion Regional Transmission Infrastructure Financing Facility (RTIFF) is a pioneering example—designed to attract investors who typically shy away from high-risk, long-term infrastructure plays. 

The fund’s priority projects include the Angola-Namibia interconnector, with an estimated cost of $356 million, aimed at bringing Angola fully into the SAPP fold. For Dihwa, innovative finance models like RTIFF are the only way to reach the region’s connectivity goals. 

“In the past, interconnection projects were mostly driven by bilateral agreements—two parties trading power, agreeing on prices, and building lines. That model has limitations. We believe the future lies in regional markets, not just bilateral deals.” 

A CLEANER FUTURE 

Alongside connectivity and market reform, clean energy is emerging as a top priority for SAPP. 

“We’re very aware that clean energy is becoming an urgent and topical issue,” Dihwa says. “We want to see how we can support the development of clean generation not just for national needs, but for regional trade. That way, green energy can flow to wherever it’s needed.” 

SAPP is already seeing member states deploy more renewables, particularly solar, in their generation mix. But transmission limitations and the intermittent nature of renewables mean regional balancing—and therefore interconnection—is even more important in a green future.

“The competitive market we’ve built offers a great foundation. As clean energy grows, that market can underpin new investment and ensure those resources are used efficiently.”

THREE DECADES OF IMPACT 

As it celebrates its 30th anniversary, SAPP stands out as one of the few examples of sustained multilateral success on the African continent. 

“We’ve managed to build an institution that has lasted three decades, achieved real impact, and kept evolving,” Dihwa reflects. “It’s a testament to the quality of the people involved—technically brilliant and committed to the idea that regional cooperation can work.”

And while political and financial hurdles remain, the SAPP vision—a fully interconnected and integrated power market for southern Africa—is not just alive, but actively expanding.

“When all members are interconnected and the necessary generation and transmission is in place, we’ll be able to realise our core goal: reliable, affordable electricity for all of southern Africa.”

From its base in Harare to high-voltage lines stretching from Mozambique to Malawi, Zambia to Tanzania, and soon Angola to Namibia, SAPP is building a power network that transcends borders—one connection at a time.